European assets stayed under pressure on Wednesday as equities extended their decline, bond-market support weakened, and gold surged to new record highs above $4,860 an ounce, highlighting persistent demand for safe havens.
Crypto markets surrendered early gains as a tentative rebound faded. Bitcoin slipped back below $89,000 as risk appetite deteriorated across European stocks and currencies. The world’s largest cryptocurrency was trading near $88,800 during the U.S. session after briefly approaching $90,000 earlier in the day, suggesting the move reflected a pause after heavy selling rather than a decisive recovery.
Major digital assets mirrored bitcoin’s trajectory, stabilizing initially before losing momentum as broader financial markets softened.
The tone in traditional markets worsened through the European afternoon. The Stoxx 600 declined 0.5%, extending its losing streak to four sessions—the longest run since November—with financial and insurance shares leading the slide. Bond markets, which had offered some relief earlier, also weakened as the decline in European yields stalled.
U.S. equity futures edged lower, while gold advanced another 2% to fresh record highs above $4,860 an ounce, reinforcing the sense that investors remain focused on capital preservation rather than re-entering risk assets.
Crypto markets had attempted to find support earlier after Japanese government bonds rebounded from a sharp selloff earlier in the week following official efforts to reassure markets. That relief helped bitcoin recoup part of Tuesday’s losses, but the bounce proved fragile as macroeconomic pressures persisted.
Uncertainty continues to center on President Donald Trump’s escalating tensions with Europe ahead of his address at the World Economic Forum in Davos. Trump has threatened tariffs on European nations that oppose his push for U.S. control or acquisition of Greenland, reviving concerns about trade conflict and policy volatility.
Those concerns have weighed on the U.S. dollar, now barely holding onto its gains for the year, while currencies such as the British pound have come under pressure. Tuesday’s selloff erased more than $1 billion in leveraged crypto positions, and Wednesday’s price action suggests markets are still working through the impact of that forced unwinding.
