Davos tariff remarks trigger crypto sell-off as Bitcoin falls under $90,000

Beincrypto reports crypto markets sold off after US Treasury Secretary Scott Bessent’s remarks at the World Economic Forum in Davos signaled renewed trade‑war risks and potential tariff escalation.

Bitcoin fell below $90,000 and Ethereum slipped under $3,000 as investors turned risk‑off. Bessent reaffirmed tariffs as leverage, describing them as an effective tool rather than a temporary measure and urging Europe not to retaliate: "Sit back, take a deep breath, do not retaliate. The president will be here tomorrow and he will get his message across." He also said President Trump could impose a 10% tariff as early as February 1 if Denmark and allied countries refuse to cooperate on Greenland, and defended tariffs' domestic effectiveness, saying it is "very unlikely that the Supreme Court is going to strike down a president’s signature economic policy" and that tariffs have generated "hundreds of millions of dollars" in revenue.

Bessent sought to downplay the bond‑market reaction by pointing to a "six standard deviation" move in Japan's bonds, but the article cites new data from European and US economists indicating tariffs act like a hidden consumption tax that tightens household liquidity and can reduce speculative flows into high‑volatility assets. For now, the piece says, trade‑war inflation risk is back on the table and crypto markets are adjusting accordingly.

Key Topics

Crypto, Bitcoin, Ethereum, Scott Bessent, World Economic Forum, Greenland