Bitcoin dips under $89K as tariff war fears and bond market selloff weigh – Markets Liveblog.

Bitcoin Slides Below $90K as Global Risk-Off Sentiment Hits Markets

Bitcoin fell below $90,000 on Tuesday as traders sold off risk assets amid a meltdown in Japan’s government bond market and renewed U.S. tariff threats against Europe. Ether (ETH) dropped below $3,000, shedding over 6% in 24 hours.

The selloff erased much of Bitcoin’s early 2026 gains. BTC hovered around $88,400 at one point, marking its lowest level since January 2, while the broader crypto benchmark CoinDesk 20 Index fell more than 5%. Bitcoin’s dominance in the market climbed to 59.8%, reflecting altcoin weakness.

Veteran trader Peter Brandt highlighted the potential for BTC to fall between $58,000 and $62,000 within two weeks, while options data suggests a roughly 30% chance Bitcoin could slip below $80,000 by June.

Crypto-linked equities also faced pressure: Strategy (MSTR) dropped 7.8%, BitMine Immersion (BMNR) fell 9.5%, Coinbase (COIN) lost 5.5%, and Circle (CRCL) fell 7.5%. Privacy coins Monero (XMR) and Dash (DASH) tumbled 11.6% and 8%, respectively. DeFi protocols remained resilient, with total value locked showing continued growth.

Global equities reflected the risk-off sentiment, with the S&P 500 down 2%, Nasdaq 100 down nearly 2%, the Nikkei off 2.5%, and Germany’s DAX down 1%. Gold and silver surged as safe havens, rising 3% and 7% to record highs.

Market commentators linked the selloff to ongoing liquidity concerns and geopolitical uncertainty. Galaxy Digital’s Mike Novogratz said Bitcoin must surpass $100,000 to regain its upward trend. BitMEX co-founder Arthur Hayes warned of potential spillover from Japan’s bond market into U.S. Treasuries.

Trading activity showed heavy liquidation, with over $486 million in longs liquidated on Tuesday alone. Open interest in Bitcoin derivatives rose slightly, suggesting traders are shorting the breakdown, while Ether’s open interest fell, pointing to spot-market-driven selling.

Despite the downturn, some crypto projects outperformed: Canton Network (CC) rose 18%, ARC jumped 30%, and Pumpfun (PUMP) gained 4%. Meanwhile, Bullish (BLSH), CoinDesk’s parent company, traded slightly higher, up over 1%.