Bitcoin extended its decline on Wednesday, falling below the $87,600 level and wiping out all gains recorded so far in 2026. The move highlights growing market sensitivity to macro and political developments, even as short-lived optimism briefly interrupted the selloff.
The leading cryptocurrency slipped under $87,586, marking a decisive turn into negative territory for the year. Earlier in the session, prices staged a modest rebound after U.S. President Donald Trump, speaking at the World Economic Forum in Davos, stated that the United States had no intention of taking Greenland by force. That comment briefly eased broader geopolitical concerns, providing temporary relief across risk assets.
However, the bounce proved short-lived. Bitcoin quickly resumed its downward trajectory as selling pressure returned, suggesting that traders remain cautious despite calming political signals.
During the same appearance, Trump also voiced optimism about the passage of a crypto market structure bill, a development that could bring clearer regulatory guidelines to the digital asset sector. While such remarks initially supported sentiment, they were not enough to offset broader technical weakness visible on price charts.
The failure of supportive headlines to sustain a recovery underscores fragile confidence in the market. For now, bitcoin remains under pressure, with traders closely watching key support zones and awaiting stronger catalysts to stabilize prices.
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