Bitcoin Falls Below $90K: Global Market Selloff and Geopolitical Tensions Weigh on Risk Assets

Bitcoin has dipped below $90,000 amid a global financial market selloff caused by rising geopolitical anxieties and instability in bond markets. Despite this downturn, some institutional investors show support, though overall market momentum appears to be waning.

Key Takeaways

Bitcoin has fallen to approximately $89,417, marking its lowest price since January 9.
The broader market selloff is linked to geopolitical tensions and recent comments by former President Donald Trump.
Smaller cryptocurrencies like Ether and Solana have experienced even steeper declines.
Institutional support persists, with Strategy Inc. purchasing nearly $2.13 billion in Bitcoin recently.
On-chain data indicates a cooling buying momentum, increasing Bitcoin’s vulnerability.
Traders are monitoring critical price levels that could indicate future market direction.

Bitcoin under $90k - Global market impact

Bitcoin's Current Situation

Bitcoin declined below the $90,000 mark for the first time in over a week, reflecting a broader market selloff as investors retreated from riskier assets. By about 3 p.m. in New York, Bitcoin fell by 3.9%, bringing the price down to around $89,417. This decline represents its lowest point since January 9. The downturn was sharper for smaller cryptocurrencies, with Ether declining more than 7% and Solana dropping by 5.3%. Crypto-related stocks were also impacted, with Coinbase Global Inc. witnessing a decline of over 5% and Bitcoin-heavy Strategy Inc. dropping nearly 10%.

Bitcoin analysis
Source: CoinGecko

The selloff was exacerbated by recent statements from former President Donald Trump concerning foreign policy, which reignited concerns about the stability of transatlantic relations. Trump's remarks included intentions to assert U.S. control over Greenland, contributing to an already fragile atmosphere in global markets, according to Bloomberg.

Additionally, bond markets faced turbulence, particularly in Japan, where the yields on 30- and 40-year government bonds surged by more than 25 basis points after comments from Prime Minister Sanae Takaichi about tax cuts for her election campaign. This sparked worries over an increasingly relaxed fiscal policy and the potential for higher government spending.

In the face of this market downturn, Strategy Inc., which is led by Bitcoin proponent Michael Saylor, revealed plans to buy nearly $2.13 billion worth of Bitcoin over the past eight days. This marks the company’s largest accumulation since July and presents a rare sign of institutional backing.

Despite this, indicators suggest market momentum is slowing. CoinGlass's net realized profit and loss measure recently dipped slightly into negative territory, reflecting diminishing buying pressure as the market adjusts to ongoing selling activities. While this trend does not indicate an impending collapse, it suggests Bitcoin's heightened vulnerability without new investment inflows.

From a technical perspective, traders are keenly observing whether Bitcoin can regain the $97,000 to $98,000 range, which would signal a resurgence for bullish traders. Conversely, if Bitcoin experiences a sustained drop below the $90,000 to $91,000 range, analysts project potential declines to levels as low as $62,000.

At present, Bitcoin's future remains uncertain, caught between weakening technical signals and ongoing macroeconomic challenges, setting the stage for a potentially volatile period ahead.

Trump’s Crypto Ventures

On another note, the Trump family's investments in cryptocurrency have become a significant contributor to their wealth, with an estimated $1.4 billion generated since January 20, 2025. Projects like World Liberty Financial have benefited from pro-crypto legislation and regulatory changes instigated during Trump's administration, as highlighted by a Bloomberg analysis.