Bitcoin Still Negative Throughout the Year Despite Trump's Remarks from Davos Temporarily Boosting Hope

Bitcoin experienced negative performance throughout 2026 after falling below the key support level at $87,500 on Wednesday. Although reassuring statements from President Trump at the World Economic Forum (WEF) in Davos temporarily pushed prices above $90,000, that positive momentum did not last long. The largest cryptocurrency is now trading around $88,000 with selling pressure still lurking from various market sides.

Bitcoin Sell-Off Falls Despite Positive Stimulus from Davos

On Wednesday morning, President Trump issued two positive signals that briefly triggered a trend reversal. First, he stated that the United States has no intention of forcibly taking Greenland—a clarification that eased geopolitical tensions that had shaken risk markets the previous week. Second, Trump expressed optimism regarding the final passage of the long-awaited crypto market structure legislation.

Market response to this news was quite significant. Bitcoin briefly jumped above $90,000 amid improved sentiment. However, that momentum could not be maintained. Within hours, massive sell-offs re-entered the market, pushing BTC down about 2.45% in the last 24 hours. This failure reflects the vulnerability of the crypto market to profit-taking and the ongoing uncertainty framing the global macro landscape.

Altcoins Follow Bitcoin’s Negative Trend

The entire crypto sector follows Bitcoin’s negative performance. Ethereum (ETH) leads at $2,930, XRP is at $1.88, and Solana (SOL) is traded at $122.85—all experiencing declines in line with BTC pressure. This movement indicates a strong correlation between Bitcoin and the rest of the market (altcoins), especially when sentiment shifts negative.

Interestingly, the traditional sector shows more resilience compared to crypto. Nasdaq and S&P 500 still maintain moderate gains, while gold has risen 1.5% to reach new levels above $4,800 per ounce—leaving crypto behind. This pattern indicates a rotation of capital from high-risk assets (cryptos) to safe havens (gold and bonds).

Thin Support and Supply Concentration Create Risks

On-chain analytics reveal concerning technical conditions. About 63% of invested Bitcoin has a cost basis above $88,000—now the main resistance zone. Meanwhile, high concentration of supply is in the $85,000-$90,000 range, but support becomes very thin below $80,000. This composition creates a scenario where a significant drop could trigger a liquidation cascade and accelerate panic selling.

Ongoing geopolitical tensions—especially following the Japanese bond market shocks on Tuesday—continue to be a restraining factor. Arthur Hayes, a macro forecaster followed by many traders, even called the rise in Japanese government bond yields a “matchstick” that could trigger a massive global risk-avoidance cycle. “Let’s see how big the fire will burn,” he said regarding the potential downside scenario.

So despite Trump’s calming words from Davos, negative fundamentals and weak technical conditions still dominate Bitcoin’s direction. Investors are still waiting before daring to take large positions at current price levels.