Bitcoin Drops Below $90K Amid Global Risk-Off Selling
Bitcoin fell below $90,000 on Tuesday as traders sold risk assets amid turmoil in Japan’s government bond market and renewed U.S. tariff threats against Europe. Ether (ETH) also sank below $3,000, down more than 6% in 24 hours, marking its lowest level since early January.
The selloff erased much of Bitcoin’s 2026 gains. BTC hovered around $88,400 at one point—the lowest since January 2—while the CoinDesk 20 Index fell more than 5%. Bitcoin’s dominance climbed to 59.8%, highlighting altcoin weakness.
Veteran trader Peter Brandt flagged the potential for BTC to fall to $58,000–$62,000 within two weeks, while options data shows roughly a 30% chance of a drop below $80,000 by June.
Crypto equities mirrored the downturn: Strategy (MSTR) fell 7.8%, BitMine Immersion (BMNR) 9.5%, Coinbase (COIN) 5.5%, and Circle (CRCL) 7.5%. Privacy coins Monero (XMR) and Dash (DASH) plunged 11.6% and 8%, while DeFi protocols remained resilient.
Global equities and safe havens reflected the risk-off mood. The S&P 500 fell 2%, Nasdaq 100 nearly 2%, Nikkei 2.5%, and DAX 1%, while gold and silver surged 3% and 7% to record highs.
Market experts cited tight liquidity and geopolitical uncertainty. Galaxy Digital’s Mike Novogratz noted Bitcoin must surpass $100,000 to regain its upward trend, while BitMEX co-founder Arthur Hayes warned of potential spillover from Japan’s bond market into U.S. Treasuries.
Trading data showed $486 million in long positions liquidated Tuesday. Open interest in Bitcoin derivatives rose slightly, signaling shorting, while Ether’s open interest fell, indicating spot-market selling.
Despite broad losses, some projects outperformed: Canton Network (CC) rose 18%, ARC jumped 30%, and Pumpfun (PUMP) gained 4%. Bullish (BLSH), CoinDesk’s parent company, climbed over 1%.
