January 21st Davos Forum drops a bombshell: tariffs suddenly reverse course. Trade concerns on the European side are instantly alleviated, and investors collectively breathe a sigh of relief—this directly triggers a surge in the crypto space.

Market action speaks loudest: Bitcoin rises from the intraday low of $87,000 all the way up to $90,300, with a single-day increase of over 3%; Ethereum is even more aggressive, jumping nearly 7%, from a bottom of $2,870 to above $3,060; altcoins like SOL and DOGE also follow suit, with 24-hour spot trading volume surging by 40%. In short, this isn’t a minor fluctuation, but a collective rebound.

The underlying logic isn’t complicated. Recently, the market was terrified by the threat of tariffs—trade war escalation, soaring global economic uncertainty—causing high-risk assets like crypto to be hammered. Bitcoin even briefly broke below $87,000, with 24-hour liquidation amounts soaring to $874 million. Now that the threat has been lifted, all those safe-haven funds that had moved into gold and USD are flowing back, and institutions are taking the opportunity to buy the dip and position themselves. The result is a classic V-shaped recovery. Risk appetite is restored + funds are re-entering the market—this is the dual driver behind this wave of market movement.

But investors need to wake up. This "agreement framework" sounds impressive but is more like a verbal consensus among parties, far from an official document. While it does involve deployment of defense systems and mineral rights, the sovereignty issues remain vague, with Denmark and local governments emphasizing red lines not to be crossed. So for the crypto community, there is indeed a short-term window for emotional recovery, but don’t mistake this for a long-term positive; defensive awareness is still necessary. The key focus now is whether Bitcoin can break through the $91,000 resistance level.