Bitcoin prices declined during Tuesday’s trading, extending recent losses, as investors continued to shy away from high risk assets amid escalating geopolitical tensions linked to U.S. demands regarding Greenland.
The world’s largest cryptocurrency has given up most of the gains it achieved in mid January, retreating once again toward the lower levels recorded at the beginning of the year, as investors increasingly favor safe haven tangible assets such as gold. Bitcoin fell by around 1.8%, trading near the $90,000 level.
Cryptocurrency prices also came under additional pressure following the postponement of discussions on a key U.S. bill aimed at regulating the digital asset sector. The legislation seeks to establish a clear regulatory framework within the United States, but its review was delayed after Coinbase raised objections to several proposed provisions.
In the same context, U.S. President Donald Trump announced that he would discuss the Greenland issue during his participation in the World Economic Forum in Davos, without specifying the parties he would meet, despite confirming the presence of delegations from several major European countries. Trump reiterated his calls for the United States to acquire the island, describing it as strategically important to national security.
Trump’s threats to impose tariffs on a number of European countries if his demands are not met have triggered renewed volatility in global markets, while he has not clarified his stance on the potential use of military force. In response, European leaders rejected these demands and began preparing countermeasures should the tariffs be implemented.
Rising geopolitical tensions have weighed on investor appetite for cryptocurrencies, which typically face pressure during periods of uncertainty, alongside continued large scale liquidation of long positions. Data showed that hundreds of millions of dollars’ worth of positions were liquidated over the past hours, following an even larger wave of liquidations earlier in the week.
Retail investor sentiment toward Bitcoin remains weak, particularly in the United States, where indicators suggest the cryptocurrency is trading at a discount in the U.S. market compared with the global average.
Across the broader market, most alternative cryptocurrencies posted notable declines. Ether fell, while XRP and BNB also retreated, as some tokens showed mixed performance amid persistent overall pressure on the digital asset market.
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