SKN | Bitcoin Turns Negative for 2026 as Trump’s Greenland Remarks Fail to Halt Slide

Key Points:

• Bitcoin slipped below $87,600, erasing all gains for 2026 despite a brief rebound on geopolitical comments.
• President Donald Trump’s remarks in Davos calmed Greenland fears but failed to reverse broader risk-off momentum.
• Strength in gold and rising global bond stress continue to weigh on crypto and other high-beta assets.

Category: Finance

Bitcoin’s early-2026 rally has officially unwound. The world’s largest cryptocurrency slid below $87,600 on Wednesday, pushing year-to-date performance into negative territory after a short-lived bounce failed to gain traction.

The move came even after Donald Trump, speaking at the World Economic Forum in Davos, attempted to ease market nerves by saying the United States had no intention of taking Greenland by force. While the comment briefly stabilized risk sentiment, crypto markets quickly resumed their decline, underscoring how fragile confidence has become.

A bounce without follow-through

Bitcoin initially caught a modest bid following Trump’s remarks, which also included renewed optimism around the eventual passage of a U.S. crypto market structure bill. For a short window, traders interpreted the comments as a reduction in geopolitical tail risk, particularly after days of tension between Washington and European allies over Greenland.

That relief, however, proved fleeting. Bitcoin soon rolled over, slipping decisively below recent support and dragging the broader crypto complex with it. Ether, XRP and Solana all extended losses, reinforcing the sense that the selloff is macro-driven rather than isolated to a single token.

Crypto underperforms traditional markets

The divergence between crypto and traditional assets has become more pronounced. U.S. equities held onto modest gains, with major indices remaining near session highs, while digital assets continued to bleed lower. For bitcoin bulls, the contrast with precious metals has been especially painful.

Gold climbed another 1.5% on Wednesday to a fresh record above $4,800 per ounce, while silver remained near its own recent highs. The continued bid in metals highlights a broader defensive shift, with investors favoring assets perceived as safe havens amid rising global uncertainty.

Macro stress builds beneath the surface

The crypto selloff follows a turbulent stretch in global markets. Renewed tension over Greenland and a sharp dislocation in Japan’s government bond market earlier this week rattled confidence across asset classes. Although Japanese bonds and equities staged a partial recovery, the aftershocks are still being felt.

Well-known macro-focused trader Arthur Hayes described the spike in Japanese government bond yields as “the match” that could ignite a wider risk-off cycle, warning that tightening financial conditions could pressure speculative assets further.

That narrative appears to be gaining traction. Bitcoin’s sensitivity to global liquidity and risk appetite has once again come into focus, with the asset behaving less like digital gold and more like a high-beta proxy for investor confidence.

What the pullback signals

With bitcoin now negative for the year, the market faces a test of conviction. The failure of positive political headlines to spark a sustained rebound suggests that traders are prioritizing macro stability and capital preservation over regulatory optimism.

Whether this pullback evolves into a deeper correction will likely depend on how global bond markets, geopolitics and central bank expectations develop in the coming weeks. For now, the message from price action is clear: calming words alone are no longer enough to reverse crypto’s slide.