Vestitz

Trump heads to Davos as trade war with Europe escalates. Bitcoin slides to $91K while gold hits record $4,720.

Today's Highlights
Watch
  • Trump's Wednesday Davos speech - watch for escalation or de-escalation signals
  • February 1st: Trump's European tariffs take effect
  • Fed FOMC meeting January 27-28
Opportunity
  • Gold continues rally on safe-haven demand - J.P. Morgan 2026 target $5,055
  • Dollar weakness in risk-off environment positive for EUR and gold
  • Bitcoin ETF inflows led by BlackRock IBIT - institutional demand continues
Risk
  • EU may activate counter-tariffs, global trade war risk
  • Deutsche Bank: Europeans may sell $8 trillion in US assets
  • Bitcoin may test $88K support - deep correction if liquidations continue
Key Developments
  • Trump heading to Davos, speech on Wednesday - critical for markets
  • Bitcoin dropped to $91K, $680M in longs liquidated
  • Gold hits new record at $4,720 on safe-haven demand
  • Fed meets January 27-28, 80% chance rates stay unchanged
  • EU prepared $93B counter-tariff package, Trump tariffs start February 1st

General Assessment

Trump administration's tariff war against 8 European countries tied to the Greenland acquisition bid has escalated into the greatest transatlantic crisis in generations. In a letter to the Norwegian PM, Trump referenced the Nobel Peace Prize, stating "I no longer feel an obligation to think purely of Peace." This statement pushed diplomatic tensions to their peak.

The World Economic Forum starting today in Davos will be the platform where tensions between Trump and European leaders are tested. Denmark decided not to attend due to the Greenland dispute. Ukrainian President Zelenskyy also confirmed he will not attend.

In the crypto market, Bitcoin broke the critical $93,000 support and retreated to $90,700. $680 million in long positions were liquidated during the Asian session. Glassnode noted that the earlier push toward $96,000 was leverage-driven, not organic demand.

Geopolitical tensions continue to push gold to new records. Gold hit an all-time high at $4,720. Gold gained 64.4% in 2025, its best performance since 1979. J.P. Morgan set their 2026 year-end target at $5,055.