Trump Remarks Trigger Market Whiplash as Bitcoin Reclaims $90K Amid $1B Crypto Liquidations

U.S. President Donald Trump once again proved his ability to jolt global markets with a few words, setting off sharp swings across cryptocurrencies and equities on Wednesday that culminated in more than $1 billion in crypto liquidations.

Bitcoin staged a rapid comeback, climbing back above the $90,000 mark after sliding to nearly $87,000 earlier in the day. The rebound followed Trump’s remarks at the World Economic Forum in Davos, where he said the U.S. would hold off on imposing new tariffs on European countries after discussions with NATO leadership. At the time of writing, Bitcoin was hovering around $89,574.

In a post on his Truth Social platform, Trump said talks with NATO Secretary General Mark Rutte resulted in a framework for future cooperation involving Greenland and the broader Arctic region. He added that, based on this understanding, tariffs that were scheduled to take effect on February 1 would no longer move forward.

Financial markets reacted swiftly. After a weak showing on Tuesday, U.S. equities bounced back, with the S&P 500, Nasdaq, and Dow Jones Industrial Average each rising about 1.5% on the day. Major cryptocurrencies followed suit, with Ethereum pushing back above $3,000 and XRP gaining more than 3% to trade near $1.96.

The volatility, however, came at a steep cost for leveraged traders. More than $1 billion in crypto positions were liquidated over the past 24 hours, with bullish bets taking the hardest hit. Long positions accounted for roughly $672 million in losses, while short positions made up about $335 million.

Bitcoin-related liquidations led the downturn at approximately $426 million, followed closely by Ethereum with around $366 million wiped out. The episode underscores how quickly sentiment can flip in digital asset markets—especially when geopolitical signals and policy expectations shift without warning.