Crypto slides alongside stocks and bonds amid geopolitical tensions and tariff concerns
Bitcoin slipped to its weakest level in more than a week on Tuesday, dropping below the $90,000 mark for the first time since January 9, as a broad global market selloff deepened amid rising geopolitical uncertainty.
The world’s largest cryptocurrency fell as much as 4 percent during Tuesday’s trading session and extended its decline into early Asian hours on Wednesday. By 9:27 a.m. in Singapore, Bitcoin was trading 0.5 percent lower at $88,894, tracking losses across equities, long-term US Treasuries, and Japanese government bonds as investors reduced exposure to risk assets.
Market participants say the $90,000 level has been a key technical threshold for Bitcoin in recent weeks.
“$90,000 has acted as an important support level since the start of the year and represents a key short-term inflection point for the market,” said Karim Dandashy of Flowdesk.
Losses were more pronounced among smaller cryptocurrencies. Ether dropped more than 7 percent, while Solana slid 5.3 percent, reflecting a broader pullback across the digital asset market.
The downturn also weighed on crypto-linked equities. Shares of Coinbase Global Inc. declined 5.6 percent, while Strategy Inc. formerly MicroStrategy fell nearly 8 percent during the session.
Analysts linked the selloff to wider market pressures rather than crypto-specific fundamentals. Shiliang Tang, investment manager at Monarq Asset Management, said Bitcoin’s recent decline mirrors the broader retreat from risk assets.
“Bitcoin’s sharp pullback reflects the same forces hitting global markets including renewed US tariff threats and escalating geopolitical frictions surrounding Greenland,” Tang said.
In traditional markets, Japanese bond yields jumped after election-related tax cut pledges reignited concerns over fiscal sustainability, adding to volatility across global fixed income markets.
Despite the near-term weakness, signs of institutional interest remain. Strategy announced a $2.13 billion Bitcoin purchase, its largest acquisition since July, underscoring continued demand for Bitcoin exposure.
“Strategy’s biggest purchase in seven months shows there is still strong retail and institutional appetite for Bitcoin, particularly through equity-linked vehicles,” said Jake Ostrovskis of Wintermute.
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