The crypto market has once again come under pressure. The reason is the strong signals from the USA about the readiness to return to trade wars. The statements were made at the World Economic Forum in Davos and quickly changed the mood of investors.
U.S. Treasury Secretary Scott Bessen confirmed: tariffs remain a key tool of the administration's foreign policy under Donald Trump. Markets took this as a direct hint at rising inflation risks and tightening financial conditions.
Against this backdrop, Bitcoin fell below $90,000. Ethereum did not hold the $3,000 level. Altcoins dropped more significantly — investors sharply shifted to a risk-reduction mode.
Tariffs are not an extreme measure, but a constant lever of pressure
Speaking at the World Economic Forum in Davos, Bessent made it clear: tariffs are viewed not as a temporary measure, but as a full-fledged tool of pressure. His words came against the backdrop of tensions between the US and Europe.
He urged partners to 'not rush into retaliatory steps' and allowed for escalation if resistance intensifies. The market interpreted this as confirmation that trade conflicts could escalate to a new level in the coming weeks.
Moreover, Bessent outlined specific deadlines. He stated that as of February 1, the US may impose 10% tariffs if Denmark and allies refuse to make concessions regarding Greenland.
Inflation is back in focus
A separate emphasis was placed on the economic consequences. Bessent dismissed concerns that tariffs would hit the domestic market and stated that they are already bringing hundreds of millions of dollars to the budget.
However, studies by European and American economists suggest otherwise. Consumers bear the main burden. In essence, tariffs work like a hidden tax on consumption and gradually squeeze household liquidity.
For the crypto market, this is critical. A decrease in free funds and rising prices directly reduce the inflow of capital into high-risk assets. This is why digital currencies react faster than traditional markets.
Interest rate volatility increases pressure
Bessent attempted to shift focus, pointing to sharp movements in the Japanese bond market. According to him, the rise in yields is difficult to link solely to US policy.
But traders are looking more broadly. New tariff threats, geopolitical tensions, and rising interest rate volatility — a combination that has historically pressured the crypto market. The loss of Bitcoin at the $90,000 level has been a signal for many to reduce positions.
Altcoins suffered the most. This is a typical picture in a phase of declining risk appetite.
A familiar scenario for crypto
What is happening resembles past episodes when tariff statements drained liquidity without causing an immediate economic downturn. It is due to such factors that the market remained in a sideways trend for a long time after the autumn wave of liquidations.
In Davos, this risk resurfaced. Despite claims of the strength of the US economy, investors heard the main message — a course towards pressure and uncertainty. Trade-inflation risks are returning to the agenda. The crypto market, as before, reacts one of the first and is already pricing in this scenario.
#BTC #Ethereum #Davos2026 #Write2Earn
