Bitcoin fell below key levels on Wednesday as concerns about geopolitical risks stemming from the US-Greenland dispute and growing financial worries about Japan dampened appetite for speculative assets.
The world's largest cryptocurrency fell 1.2% to $89,801.1 by 10:10 AM Saudi time, nearing its lowest levels this year.
Bitcoin had a slow start to 2026, failing to sustain any significant gains as global risk appetite waned. Delays in a key US cryptocurrency regulation bill also drained market momentum.
Prices for the broader cryptocurrency market fell, tracking Bitcoin on Wednesday.
Bitcoin under pressure over the Greenland dispute and financial risks
The poor performance of Bitcoin and the wider cryptocurrency market was mainly affected by growing concerns over US President Donald Trump's claims to Greenland.
Trump threatened to impose tariffs on eight European countries until an agreement is reached, and was seen not ruling out the possibility of military action against the Danish colony.
Trump is scheduled to attend the World Economic Forum in Davos, Switzerland on Wednesday, where he has said he will speak with various parties about Greenland.
Growing concerns about the weakening financial health of the developed world have also dampened risk appetite. Global bond yields rose this week, with the surge seen in Japan as investors worried about the country's debt burden, the largest in the developed world.
Concerns about Japan's financial health intensified after Prime Minister Sanae Takaichi announced early elections in February. Investors questioned how Tokyo would finance Takaichi's plans for massive stimulus measures and further tax breaks.
Geopolitical and financial concerns have led to a significant risk aversion in the markets, shifting supply away from speculative assets like cryptocurrencies and towards safe havens, particularly gold. The precious metal has surged to a series of record highs this week.
A strategist buys $2.1 billion worth of Bitcoin
Bitcoin prices were not greatly affected by the announcement from the largest cryptocurrency holder, Strategy& (NASDAQ:MSTR), that it had purchased approximately 22,305 coins between January 12 and January 19, for a total of $2.13 billion.
Strategy&'s total Bitcoin holdings amount to 709,715 coins, reinforcing its position as the world's largest cryptocurrency holder.
However, shares of Strategy& fell by 7% after the purchase, and the price of Bitcoin received little support.
Investors largely backed away from Strategy&'s Bitcoin treasury plan last year, as the cryptocurrency's prolonged poor performance led to deep paper losses for the firm.
Earlier in January, Strategy& disclosed an unrealized loss of $17.44 billion on its digital assets in the fourth quarter. This raised further questions among investors about the long-term viability of Strategy&'s Bitcoin holdings, which are largely funded through debt and equity issuances.
The value of Strategy& shares fell by almost half during 2025.
Cryptocurrency prices today: Altcoins follow Bitcoin's decline
Cryptocurrency prices fell broadly. Ether, the world's second-largest cryptocurrency, dropped 4.8% to $2,984.21, its weakest level since late December.
XRP and BNB fell by 1.5% and 3.8%, respectively. Solana and Cardano declined by approximately 2% each.
Among the meme coins, Dogecoin and $TRUMP each fell by more than 1%.
