Bitcoin slipped below key technical levels on Wednesday as investor sentiment weakened amid rising geopolitical tensions linked to the U.S.–Greenland dispute and growing fiscal concerns surrounding Japan. The combination of political uncertainty and debt worries reduced appetite for high-risk and speculative assets.
The world’s largest cryptocurrency declined 1.2% to $89,801.1 by 01:10 ET (06:10 GMT), hovering near its lowest levels of the year. Bitcoin has had a subdued start to 2026, struggling to sustain meaningful rallies as global risk appetite faded. Momentum was further dampened by delays surrounding a major U.S. cryptocurrency regulation bill.
Losses extended across the broader digital asset market, with most cryptocurrencies tracking Bitcoin lower.
Bitcoin weighed down by Greenland tensions and fiscal risks
Pressure on Bitcoin intensified following renewed geopolitical concerns tied to U.S. President Donald Trump and his stance on Greenland. Trump threatened to impose tariffs on eight European countries unless negotiations progressed and did not rule out potential military action involving the Danish territory.
Trump is scheduled to attend the World Economic Forum in Davos, Switzerland, where he said discussions with “various parties” on Greenland would take place.
At the same time, mounting worries about fiscal sustainability in developed economies further eroded risk sentiment. Global bond yields jumped this week, with the sharpest moves originating in Japan, where investors are increasingly concerned about the country’s massive debt burden.
Uncertainty deepened after Japanese Prime Minister Sanae Takaichi called a snap election for early February. Markets have questioned how Tokyo plans to finance her proposed stimulus measures and expanded tax cuts, adding to concerns over Japan’s fiscal outlook.
As geopolitical and fiscal anxieties grew, investors shifted away from speculative assets such as cryptocurrencies and into traditional safe havens. Gold benefited strongly from this rotation, climbing to multiple record highs during the week.
Strategy’s Bitcoin purchase fails to lift prices
Bitcoin found little support from fresh buying by Strategy Inc, which disclosed it purchased approximately 22,305 bitcoins between January 12 and January 19 for about $2.13 billion.
The acquisition lifted Strategy’s total Bitcoin holdings to 709,715 coins, reinforcing its position as the world’s largest corporate holder of the cryptocurrency. However, the move failed to boost market confidence. Strategy shares fell 7% following the announcement, while Bitcoin prices showed little reaction.
Investor sentiment toward Strategy’s Bitcoin treasury strategy has deteriorated over the past year, as prolonged weakness in crypto prices resulted in significant paper losses. Earlier this month, the company reported unrealized digital asset losses of $17.44 billion for the fourth quarter, raising renewed questions about the sustainability of its debt- and equity-funded buying approach. Strategy’s stock nearly halved in value during 2025.
Crypto prices today: altcoins follow Bitcoin lower
Losses spread across the broader crypto market. Ether, the second-largest cryptocurrency, dropped 4.8% to $2,984.21, marking its weakest level since late December.
XRP declined 1.5%, while BNB slid 3.8%. Solana and Cardano each fell by roughly 2%. Among memecoins, Dogecoin and TRUMP token prices were both down more than 1% on the day.
