Bitcoin dropped to its lowest level in over a week, sliding below the $90,000 mark for the first time since January 9, as a broad global market selloff gathered pace amid rising geopolitical tensions.
The cryptocurrency declined by as much as 4% on Tuesday and continued its downward trend into Wednesday’s Asian trading session, easing a further 0.5% to $88,894 by 9:27 a.m. in Singapore. The decline mirrored losses across global equities, long-term US Treasuries, and Japanese bonds as investors reduced exposure to riskier assets.
“Ninety-thousand has ‘proven to be a critical level that we’ve seen hold as support since the early days of the year and is likely an important inflection point in the short term,’” said Karim Dandashy of Flowdesk.
Losses were steeper among smaller cryptocurrencies, with Ether falling more than 7% and Solana shedding 5.3%. Stocks linked to the crypto sector also weakened, as Coinbase Global Inc. slid 5.6% while Strategy Inc. dropped nearly 8%.
“Bitcoin’s sharp drop over the weekend mirrors a broader exodus from risk assets,” said Shiliang Tang of Monarq Asset Management, pointing to US tariff threats and geopolitical tensions surrounding Greenland.
Meanwhile, Japanese bond yields climbed sharply after election-driven tax cut promises sparked fiscal worries. At the same time, Strategy announced a $2.13 billion Bitcoin acquisition — its biggest purchase since July — underscoring continued interest from large investors.
“Today’s news MSTR’s largest purchase in 7 months suggests there’s still significant retail and institutional appetite for Bitcoin exposure through equity wrappers,” said Jake Ostrovskis of Wintermute.