BTC Rallies to $90,000 Range as Trump's Policy Signals Ease Market Tensions

Bitcoin bounced strongly this week, climbing into the $90,000 range after U.S. President Donald Trump signaled a pause on planned trade tariffs. The world’s largest digital asset witnessed volatile swings throughout the session, reflecting traders’ rapid reassessment of near-term policy risks. At one point, prices dipped toward $87,000 before recovering sharply, ultimately settling near the $90,000 threshold as market sentiment shifted on fresh policy comments from the Trump administration.

Policy Optimism Fuels Bitcoin and Broader Risk Asset Recovery

Trump’s remarks at the World Economic Forum in Davos proved the catalyst for the day’s upside reversal. After describing discussions with NATO Secretary General Mark Rutte as “very productive,” Trump announced a delay to tariffs previously scheduled for February 1. His statement outlined preliminary framework discussions involving NATO nations and Arctic region cooperation, suggesting the planned trade restrictions would not proceed as initially timetabled.

The news triggered a broad-based rally across risk assets. Equities responded decisively, with the S&P 500, Nasdaq, and Dow Jones Industrial Average each posting gains around 1.5%. Bitcoin and other major cryptocurrencies followed suit, capitalizing on the reduced geopolitical uncertainty. Notably, Trump reiterated his support for digital assets during the Davos event, expressing hopes to sign comprehensive crypto market structure legislation “very soon,” which further bolstered sentiment among digital asset participants.

Technical Landscape: Support Zones and Resistance Hurdles

From a technical perspective, Bitcoin’s performance this past week revealed underlying strength despite current volatility. The cryptocurrency maintained bullish positioning above the $90,000 level, reaching as high as $98,000 before settling around $93,600. For the rally to extend further, bulls will need to reclaim $94,000 and retest $98,000, potentially opening pathways toward $103,500 and the $106,000–$109,000 resistance band.

The downside blueprint shows $91,400 as the nearest support zone. A breakdown below this level could trigger deeper pullbacks toward $87,000 or potentially $84,000. The $103,500–$109,000 resistance area remains a critical juncture; rejection at these levels could shift momentum dramatically, risking moves toward sub-$80,000 territory if bearish pressure intensifies.

Liquidations Spike Amid Whipsaw Volatility

Wednesday’s dramatic price swings exacted a significant toll on leveraged traders. Over the preceding 24 hours, more than $1 billion in crypto positions faced liquidation as prices reversed sharply in both directions. Long positions bore the brunt of the damage, accounting for approximately $672 million in forced closures, while short positions contributed roughly $335 million. Bitcoin led the liquidation tally at around $426 million, with Ethereum following at approximately $366 million.

Macro Headwinds Shadow the Rally

Despite the near-term optimism, macroeconomic concerns persist in the background. Japan’s bond market has emerged as a potential vulnerability, with the 10-year government bond yield climbing to approximately 2.29%—a level unseen since 1999. Analysts have flagged Japan’s debt dynamics as a risk factor, noting that government debt exceeds 240% of GDP with debt servicing costs projected to consume roughly a quarter of fiscal expenditure by 2026. Such structural strains could weigh on global risk appetite if conditions deteriorate further.

Current Market State and Outlook

As of the latest data, Bitcoin is trading near $88,780 with 24-hour trading volume around $981.59 million. The cryptocurrency’s market capitalization stands at approximately $1.774 trillion, positioning it solidly within recent trading ranges. The 24-hour price movement shows a modest uptick of 1.47%, with the session high near $88,860 and low around $87,040.

The divergence between rising macroeconomic risks and improving near-term policy sentiment creates a complex backdrop. While Trump’s tariff delay has provided short-term relief, Japan’s fiscal pressures and broader global tensions remind investors that durability of the $90,000 rally remains contingent on sustained positive developments in both policy and macro conditions.