Bitcoin fell below $90,000 for the first time in more than a week, extending losses along with a sharp sell-off in the global market as investors moved away from risk amid rising geopolitical tensions and turmoil in bond markets.
Summary
- The world’s largest cryptocurrency fell as volatility swept through stocks, long-term U.S. Treasuries and Japanese government bonds.
- The downward trajectory underscores Bitcoin’s continued sensitivity to macroeconomic shocks rather than its “digital gold” narrative.
- Trump isn’t feeling the pain, having raised roughly $1.4 billion since beginning his second term.
Bitcoin fell 3.9% to around $89,417 around 3 p.m. in New York, its lowest level since January 9. Losses were steeper in the smaller tokens, with Ether falling by more than 7% and Solana by 5.3%. Cryptocurrency-linked stocks also came under pressure, with Coinbase Global Inc. falling more than 5% and Bitcoin-heavy Strategy Inc. falling nearly 10%.
The sell-off unfolded as broader financial markets reeled following President Donald Trump’s latest foreign policy comments, which reignited fears of a fractured transatlantic alliance as he reiterated his plans to assert U.S. control over Greenland. The comments added to already fragile sentiment in global markets. Bloomberg reported.
Bond markets were also shaken, particularly in Japan, where 30- and 40-year government bond yields rose more than 25 basis points. The move followed comments by Prime Minister Sanae Takaichi promising tax cuts as part of her election campaign, fueling concerns about looser fiscal policy and increased government spending.
Despite the slowdown, Strategy, led by Bitcoin bull Michael Saylor, revealed on Tuesday that it bought nearly $2.13 billion worth of Bitcoin in the past eight days (its biggest build since July), offering a rare note of institutional support.
Still, on-chain data suggests momentum is cooling. CoinGlass’s net realized profit and loss metric has fallen slightly into negative territory after months of strong gains, a sign that buying pressure is fading as the market digests the selling. While that doesn’t point to an imminent collapse, it leaves Bitcoin more vulnerable without new inflows.
Technically, traders are watching to see if Bitcoin can reclaim the $97,000 to $98,000 range, which would suggest that the bulls are regaining control. On the downside, a sustained break below $90,000-$91,000 could open the door to a deeper pullback, with some analysts targeting levels as low as $62,000.
For now, Bitcoin’s outlook remains cloudy, caught between weakening technical signals and lingering macro uncertainty, setting the stage for a volatile battle over its next move.
Trump gains despite volatility
Meanwhile, the Trump family’s crypto businesses have become a central pillar of their fortune, generating an estimated $1.4 billion as of January 20, 2025.
Each project, like World Liberty Financial, has been bolstered by pro-cryptocurrency legislation and regulatory rollbacks from the Trump administration, according to a Bloomberg Analysis.
