Bitcoin continues to be under pressure due to rising geopolitical tensions and unfavorable dynamics in global financial markets. In the face of increasing uncertainty, investors are opting for risk-averse strategies, which weakens the position of the leading cryptocurrency.
This is reported by Finway
Japanese Bonds and New US Tariffs Impact Markets
- The yield on Japanese ten-year government bonds reached 2.29%, the highest level since 1999.
- The US has imposed new tariffs on eight EU countries due to their stance on controlling Greenland.
- Bitcoin is trading below the $90,000 mark and remains vulnerable to geopolitical events, according to QCP Capital.
According to analysts, the rise in Japanese bond yields has raised concerns about the sustainability of the country’s finances, as Japan’s national debt exceeds 240% of GDP. This has been another factor shaking market participants’ confidence.
At the same time, the US announced the introduction of a 10% tariff on goods from eight European countries that opposed increased American control over Greenland. These tariffs are expected to take effect on February 1, and may rise to 25% by summer. In response, the European Union threatened to suspend the ratification of a trade agreement made in July. Such reciprocal actions only heighten turbulence in global markets.
Bitcoin Shows High Volatility
Experts at QCP Capital note that in the context of a general decline in risk appetite, Bitcoin is not behaving as a traditional safe-haven asset. Instead, it acts as a highly volatile instrument, sensitive to changes in interest rates and the political situation.
“Until clear political signals emerge, cryptocurrencies are likely to remain reactive rather than directional. Currently, this is a capital preservation market, not one of confidence,” concluded QCP Capital.
As of January 2026, the price of Bitcoin hovers around the $89,000 mark:
BTC/USDT Chart on Binance. Data: TradingView.
Previously, analysts at CryptoQuant stated that new large players (“whales”) have taken control of the Bitcoin market, influencing its sentiment and price dynamics.