Bitcoin briefly slipped below the key $90,000 threshold on Wednesday, as rising geopolitical tensions linked to the U.S.–Greenland dispute and growing fiscal concerns centered on Japan dampened demand for riskier assets.
The world’s largest cryptocurrency was down 0.5% at $90,226 by 10:10 ET (15:10 GMT), after earlier dipping under $90,000 and hovering close to its lowest levels of the year.
Bitcoin has had a slow start to 2026, struggling to sustain meaningful gains as global risk appetite weakened. Sentiment was further hurt by delays surrounding a major U.S. cryptocurrency regulation bill, which reduced market momentum.
Bitcoin weighed down by Greenland tensions and fiscal risks
Bitcoin’s weakness, alongside broader underperformance in the crypto market, was largely driven by escalating concerns over Donald Trump’s stance on Greenland. Trump warned of imposing tariffs on eight European countries until an agreement is reached and did not rule out the possibility of military action involving the Danish territory.
Trump is scheduled to attend the World Economic Forum in Davos, Switzerland, where he said he plans to speak with “various parties” about Greenland.
At the same time, worries over deteriorating fiscal conditions in developed economies continued to pressure markets. Global bond yields surged this week, led by a sharp move in Japan as investors grew uneasy about the country’s massive debt burden—the largest among advanced economies.
Concerns deepened after Japanese Prime Minister Sanae Takaichi announced a snap election for early February. Investors remain uncertain about how Tokyo will finance proposed large-scale stimulus measures and additional tax cuts.
These combined geopolitical and fiscal fears pushed markets into a risk-off mode, diverting flows away from speculative assets such as cryptocurrencies and toward safe havens, particularly gold. The precious metal climbed to a series of record highs this week.
Strategy’s Bitcoin purchase fails to lift prices
Bitcoin prices saw little support from Strategy Inc (NASDAQ: MSTR), which disclosed that it purchased approximately 22,305 bitcoins between January 12 and January 19 for about $2.13 billion.
The acquisition raised Strategy’s total Bitcoin holdings to 709,715 coins, reinforcing its position as the world’s largest corporate holder of the cryptocurrency. Despite this, Strategy’s shares fell 7% following the announcement, while Bitcoin prices remained largely unmoved.
Investor confidence in Strategy’s Bitcoin-focused treasury strategy has weakened over the past year, as prolonged softness in crypto markets led to substantial paper losses. Earlier in January, the company reported unrealized losses of $17.44 billion on its digital assets in the fourth quarter.
These losses have intensified scrutiny over the long-term sustainability of Strategy’s aggressive Bitcoin accumulation, which relies heavily on debt financing and share issuance. The company’s stock has nearly halved in value during 2025.
Crypto prices today: altcoins remain subdued
Broader cryptocurrency prices were mixed. Ether fell 0.7% to $2,988.58, trading near its weakest level since late December. XRP gained 1%, while BNB declined 1.5%. Solana and Cardano posted gains of 1.8% and 1%, respectively.
Among memecoins, Dogecoin and $TRUMP edged slightly higher, rising by less than 1% each.
