Bitcoin fell below key levels on Wednesday as fears of geopolitical risks from the U.S.-Greenland spat and mounting fiscal concerns over Japan battered appetite for speculative assets.
The world’s largest crypto fell 1.2% to $89,801.1 by 01:10 ET (06:10 GMT), coming close to its lowest levels for the year.
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Bitcoin marked a sluggish start to 2026, failing to hold any major gains as global risk appetite faltered. A delay in a key U.S. crypto regulation bill also sapped markets of any momentum.
Broader crypto prices fell tracking Bitcoin on Wednesday.
Bitcoin pressured by Greenland spat, fiscal risks Bitcoin and broader underperformance in crypto was fueled chiefly by heightened concerns over U.S. President Donald Trump’s demands for Greenland.
Trump threatened to tariff eight European countries until a deal was reached, and was also seen declining to rule out potential military action for the Danish colony.
Trump is set to attend the World Economic Forum in Davos, Switzerland, on Wednesday, where he said he will speak to “various parties” on Greenland.
Mounting concerns over weak fiscal health in the developed world also weighed on risk appetite. Global bond yields surged this week, with the spike originating in Japan as investors fretted over the country’s debt burden, which is the largest in the developed world.
Concerns over Japan’s fiscal health were furthered by Prime Minister Sanae Takaichi declaring a snap election in early-February. Investors have questioned just how Tokyo will fund Takaichi’s plans for outsized stimulus measures and more tax breaks.
Geopolitical and fiscal fears left markets largely risk averse, drawing bids away from speculative assets like crypto and into safe havens, especially gold. The yellow metal surged to a series of record highs this week.
Strategy buys $2.1 bln Bitcoin Bitcoin prices were little cheered by top corporate holder, Strategy Inc (NASDAQ:MSTR), disclosing it had purchased about 22,305 coins between January 12 and January 19, for a total $2.13 billion.
The buy brings Strategy’s total Bitcoin holdings to 709,715 coins, reinforcing its spot as the world’s biggest corporate holder of the coin.
But Strategy shares slid 7% after the buy, while Bitcoin’s price also took little support.
Investors largely soured on Strategy’s Bitcoin treasury plan in the past year, as prolonged underperformance in the crypto sparked deep paper losses for the company.
Earlier in January, Strategy disclosed an unrealized loss of $17.44 billion on its digital assets in the fourth quarter. This sparked more investor questions over the long-term viability of Strategy’s Bitcoin buying, which is largely funded by debt and share issuances.
Strategy’s shares nearly halved in value through 2025.
Crypto price today: altcoins track Bitcoin lower Broader crypto prices fell across the board. World no.2 crypto Ether fell 4.8% to $2,984.21, its weakest level since late-December.
XRP and BNB fell 1.5% and 3.8%, respectively. Solana and Cardano shed about 2% apiece.
Among memecoins, Dogecoin and $TRUMP fell over 1% each.
