Bitcoin Falls Below $90,000 as Global Sell-Off Intensifies

Bitcoin dropped to its lowest level in more than a week following a sharp sell-off across global financial markets, as investors continued to reduce risk amid ongoing geopolitical tensions.

The largest cryptocurrency fell below $90,000 for the first time since January 9, moving in tandem with declines in equities, long-term U.S. Treasuries, and Japanese government bonds, while volatility spread across debt markets. After a 4% drop on Tuesday, Bitcoin continued falling Wednesday morning in Asia, down 0.5% to $88,894 as of 09:27 in Singapore.

According to Karim Dandashi, a crypto trader at Flowdesk, the $90,000 level “proved critical, serving as year-to-date support and likely representing an important short-term reversal point.”

Smaller, less liquid tokens fell even more—Ether declined over 7%, while Solana lost 5.3%. Shares of crypto-related companies also tumbled—Coinbase Global Inc. dropped 5.6%, and Bitcoin Accumulator Strategy Inc. fell nearly 8%.

Financial markets sank after President Donald Trump threatened the postwar order, asserting U.S. dominance in the Western Hemisphere and straining the Europe-U.S. alliance by promising to take control of Greenland. Japanese bonds also fell amid concerns over the country’s fiscal position.

“The sharp weekend drop in Bitcoin reflects a broader withdrawal from risk assets in traditional macro markets due to the White House’s threat of tariffs on European nations and geopolitical tensions around Greenland,” said Shiliang Tang, managing partner at Monarq Asset Management. “The rally in gold and silver, alongside dollar weakness, underscores this safe-haven capital flight triggered by the U.S.’s aggressive stance.”

Japanese bonds also declined, with 30- and 40-year yields rising over 25 basis points, following comments from Prime Minister Sanae Takaichi, who promised tax relief on food as part of her election campaign, raising concerns about a more expansionary fiscal policy and increased government spending.

Meanwhile, Michael Saylor’s company Strategy announced Tuesday that it had acquired nearly $2.13 billion in Bitcoin over the past eight days—the company’s largest purchase since July.

“The news of MSTR’s largest purchase in the last seven months shows that there is still significant interest from retail and institutional investors for Bitcoin exposure via equities,” said Jake Ostrowskis, head of OTC trading at Wintermute. “We are seeing BTC outperform ETH in the session following this news.”

Crypto investors have invested around $1.2 billion in roughly a dozen Bitcoin ETFs listed in the U.S. so far this year, which initially helped push the token’s price higher following last year’s market decline.

Technical Picture BTC: Weekly

• Uptrend observed
• Price sitting at diagonal and horizontal support
• Fibonacci retracement: correction to 38.2%
• DeMarker indicator reversing from oversold territory

Technical Picture BTC: Daily

• Break of the descending trend and formation of a new upward movement
• Price below 23.6% Fibonacci and 65 MA
• DeMarker is in neutral territory