Bitcoin briefly fell below the $90,000 level during U.S. trading hours as a broad selloff swept through global risk markets, driven by renewed tariff concerns and turbulence in government bond markets. The decline came amid sharp moves in Japan’s sovereign debt market and escalating trade rhetoric from Donald Trump, which unsettled investors across equities, commodities, and digital assets. Bitcoin later stabilized near $89,700 but still recorded its steepest daily drop in weeks, reflecting a shift toward risk-off positioning. Ether traded just under $3,000, while several major altcoins posted deeper losses. The downturn mirrored weakness in U.S. equity benchmarks, with major stock indices closing more than two percent lower, underscoring the tight correlation between crypto markets and broader macro sentiment during periods of financial stress.
Selling pressure extended beyond spot markets into crypto-linked equities and derivatives, highlighting the scale of the move. Shares of major crypto-exposed companies declined alongside digital assets, with exchange operators, mining firms and corporate treasury holders all trading lower. Derivatives data showed rising open interest in bitcoin contracts during the selloff, suggesting traders were increasingly positioning for further downside rather than exiting positions outright. Ether markets showed a different dynamic, with heavier spot-driven selling accompanying falling open interest, indicating direct liquidation rather than hedging activity. Analysts pointed to heightened concern over global liquidity conditions, particularly the potential spillover from Japan’s bond market into U.S. Treasuries. Volatility measures in traditional fixed-income markets have climbed, reinforcing caution across asset classes and reducing appetite for leveraged or high-beta exposures such as cryptocurrencies.
While digital assets struggled, traditional defensive assets outperformed, with gold extending its rally to fresh highs as investors sought protection from macro uncertainty. Market participants noted that tighter liquidity, geopolitical tension and fiscal concerns have favored assets perceived as stores of value with long-standing track records. Some analysts argued that bitcoin’s recent price action reflects its current role as a risk-sensitive asset rather than a safe haven, particularly during periods of rapid deleveraging. Despite the sharp move lower, observers also highlighted pockets of resilience within decentralized finance, where stablecoin-based activity and total value locked continued to trend higher. This divergence suggests that while prices remain vulnerable to macro shocks, underlying usage in certain segments of the crypto economy remains intact as investors prioritize capital preservation.
