Trump's Davos Speech Balance: Can Bitcoin's $89,600 Rebound Hold Steady

Bitcoin shows technical stabilization after a sharp sell-off on Tuesday, with prices rebounding close to the $90,000 level. However, this rebound appears more like a brief correction after forced deleveraging rather than a genuine return of risk appetite. The current market focus has shifted to Trump’s upcoming speech at Davos, which could become a key variable in determining the subsequent trend.

The Truth About the Rebound: Repair Rather Than Reversal

During the Asia-Europe trading session on Wednesday, Bitcoin briefly stabilized near $89,600. Although the gains were limited, it clearly moved away from the lows driven by risk aversion on Tuesday. Ethereum rebounded slightly after dropping over 4% in a single day, while Solana, Cardano, and XRP also stabilized.

This round of rebound is supported by clear technical factors. Japanese government bonds rebounded after earlier selling pressure this week, with ultra-long yields quickly retreating following official calls for market rationality. Meanwhile, US stock index futures edged higher, indicating that the panic triggered by rate hikes and geopolitical uncertainties is cooling down. The buffering of global liquidity expectations has provided a breathing space for cryptocurrencies.

However, on-chain data shows limited participation in this rebound. Although selling pressure has eased, large-scale chasing funds have yet to re-enter. Traders generally prefer to stay on the sidelines ahead of Trump’s Davos speech, indicating that market caution has not fully dissipated.

Trump’s Speech: A Key Variable Influencing the Next Trend

Trump is scheduled to deliver a special speech at 2:30 PM local time at the World Economic Forum in Davos, and will meet with leaders from multiple European countries. His comments on Greenland and tariffs on European nations remain core variables influencing market sentiment.

Previously, these remarks, combined with soaring bond yields, prompted funds to withdraw from high-volatility assets like Bitcoin and shift into defensive assets such as gold and silver. The recent record highs in both assets are clear evidence of this. It shows that the market is highly sensitive to geopolitical and trade policy developments.

If his speech alleviates geopolitical and rate pressures, Bitcoin may attempt to regain the $90,000 level and push higher. Conversely, the market could test lower support zones again.

Institutional Long-Term Support

It is noteworthy that amid market volatility, institutional investors’ allocations are accelerating. According to the latest data:

• MicroStrategy’s Bitcoin holdings have surged significantly, sparking speculation that it may be included in the S&P 500 index
• MetaPlanet has surpassed the 10,000 Bitcoin holding threshold, establishing influence in the Asian market
• Vanguard’s international stock index fund increased MetaPlanet holdings to 15.64 million shares, worth about $53.5 million
• BlackRock’s iShares Preferred and Income Securities ETF holds Strategy stocks valued at $471 million

These institutional allocations indicate that despite short-term turbulence, long-term confidence in Bitcoin remains intact, providing a bottom support for the market.

Current Balance and Outlook

Bitcoin is currently at a delicate equilibrium: short-term momentum is limited, but long-term support remains. The $89,600 level has become a key psychological threshold and a test of market sentiment.

If Trump’s speech adopts a hawkish tone or triggers new uncertainties, the market may test lower support again. If his remarks ease market worries, short-term funds could further flow into risk assets. Nonetheless, the continuous institutional allocations suggest that this price zone has become a relatively safe accumulation area.

Summary

Bitcoin’s recent rebound is more a technical correction than a trend reversal. Trump’s Davos speech will be a crucial signal in determining the future direction. While short-term sentiment remains cautious, ongoing institutional allocations provide solid support for the long-term outlook. Investors should closely monitor the speech content and recognize that, amid current volatility, the $90,000 vicinity has become a key support zone for both institutions and short-term traders.