Bitcoin Remains Negative in 2026: Trump's Signal Not Enough to Reverse Market Trend

Positive news from President Donald Trump at the World Economic Forum Davos apparently failed to save Bitcoin from a continued decline. This situation reflects the complexity of the market that goes beyond mere regulatory sentiment. Bitcoin, the largest asset in the crypto sector, is now recording negative performance throughout 2026, closing below the $87,500 level in the Wednesday morning trading session in the United States.

Positive Expectations from Trump Fail to Change Negative Momentum

On Wednesday (January 21), President Trump delivered two messages that theoretically should benefit the crypto market. First, he stated that the United States has no intention of forcibly taking Greenland, a signal intended to ease geopolitical tensions that have unsettled the market. Second, Trump expressed optimism about the final passage of the crypto market structure law—a regulatory development long awaited by the industry.

Market responses to these statements did show a temporary recovery. Bitcoin previously reached the $90,000 level in the same session, creating hope that the negative trend had ended. However, that positive momentum was only short-lived. Selling reemerged, pushing BTC sharply down below $87,500. Real-time data shows Bitcoin currently at $87.92K with a 1.57% decrease in the last 24 hours—proof that positive signals from the highs are not enough to overcome deeper market concerns.

Global Pressure: From Greenland to Japan Bond Crisis

Why are markets so resistant to good news? The answer lies in a more complex global environment than just statements about Greenland. Ongoing tensions between the United States and European allies regarding Greenland’s fate, combined with a massive selloff in Japanese government bonds on Tuesday (January 20), have created a strong risk-off environment.

Global macro expert Arthur Hayes describes the sharp increase in Japanese government bond yields as a “match” that could trigger a global risk-avoidance cycle. The impact is tangible: risk assets including cryptocurrencies are experiencing large-scale sell-offs. Although Japanese bonds and stocks experienced moderate recovery on Wednesday, the initial shock continues to be felt across the global financial system, creating negative momentum that is difficult for positive crypto sector sentiment alone to counteract.

Major Cryptocurrencies and Traditional Markets: Widespread Selling Pattern

Bitcoin’s decline is part of a broader selling pattern across the crypto ecosystem. Ethereum (ETH) is at $2.94K, XRP at $1.87, and Solana (SOL) at $123.04—all continuing to face downside pressure. Interestingly, traditional markets show better resilience. Nasdaq and S&P 500 managed to maintain moderate gains on Wednesday, providing a stark contrast to crypto asset performance.

Precious metals, on the other hand, are showing much stronger performance in this environment. Gold rose 1.5% on Wednesday to reach a new high above $4,800 per ounce, while silver remained stable after surging to its own record high on Tuesday. This phenomenon indicates that investors are still seeking safe haven assets, and cryptocurrencies have not yet been fully accepted as “safe” assets in times of crisis.

Technical Analysis: Fragile Support Levels and High Supply Concentration

From a technical perspective, Bitcoin’s situation appears fragile. On-chain data shows a very high concentration of supply between the $85,000 and $90,000 levels—an area currently dominated by selling. More concerning, support below the $80,000 level is very thin, creating potential for deeper declines if the $85,000 level is breached.

Other data indicates that about 63% of the total invested Bitcoin wealth has a cost basis above $88,000. This means most holders are currently experiencing unrealized losses, a situation that typically triggers stop-loss cascades when the market remains under pressure. This combination is a perfect recipe for sustained short-term pressure.

Outlook: When Can Bitcoin Turn Positive Again?

For Bitcoin to record positive performance again this year, the market needs more than just positive regulatory statements. A normalization of the global macro environment is required, especially stabilizing the Japanese bond market and reducing geopolitical tensions. Positive signals from Washington alone are not enough when the global environment is experiencing a strong risk-off cycle.

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