Summary
- Bitcoin slipped below $90,000, with its co-movement with the global market’s risk-off trend strengthening.
- Markets said $90,000 is a key near-term inflection point and an important price level that has served as support, and that after the break lower, selling and technical headwinds intensified.
- They assessed that medium- to long-term institutional demand and structural demand are limiting downside, supported by ETF inflows into U.S.-listed Bitcoin products and Strategy’s large additional Bitcoin purchases.
Bitcoin slid back below $90,000, underscoring an even clearer co-movement with the global risk-off tone in financial markets. As geopolitical tensions and tariff risks resurfaced simultaneously, crypto is increasingly trading less like an independent asset and more as an extension of traditional risk assets.
According to Bloomberg on the 21st, Bitcoin fell below the $90,000 level for the first time since the 9th, dropping to as low as $89,535 during New York trading. It was down about 3.7%, while global equities, long-dated government bonds and even Japanese government bonds weakened in tandem over the same period. With volatility spreading across the bond market, the view is that deleveraging pressure has intensified across risk assets.
Markets see $90,000 as a key near-term inflection point. Karim Dandashi, an OTC trader at Flowdesk, said, “$90,000 is an important level that has acted as support since the start of the year and is likely to serve as a line that determines near-term direction.” After breaking below that zone, selling accelerated and technical headwinds have grown.
Losses were larger for altcoins and related stocks. Ether fell more than 7% and Solana slid about 5.3%. Crypto-related equities also weakened: Coinbase dropped about 5.6%, while Strategy, a firm known for its Bitcoin-holding strategy, plunged about 8%. The typical pattern re-emerged in which lower-liquidity assets see volatility spike during risk-off phases.
The pullback is being attributed to a combination of the White House’s threat of tariffs on Europe and geopolitical frictions surrounding Greenland. Managing partner Shiliang Tang of Monarch Asset Management said, “This sharp drop in Bitcoin tracks the traditional macro market’s move out of risk assets triggered by the possibility of European tariffs and the Greenland issue.” He added that rising gold and silver prices alongside a weaker dollar also indicate funds are rotating into safe havens.
Even so, medium- to long-term buy signals are coexisting with the downturn. Strategy, led by Michael Saylor, said it has purchased an additional roughly $2.13 billion worth of Bitcoin over the past eight days. The figure is the largest since July last year, suggesting some institutions and investors are using the price pullback as an opportunity. Inflows into U.S.-listed Bitcoin ETFs have also reached about $1.2 billion so far this year, supporting the view that structural demand remains intact.
In the near term, macro factors and geopolitical risks are weighing on prices, but over the medium to long term, institutional demand and ETF flows continue to provide a structure that limits downside. Analysts say Bitcoin is likely to remain highly volatile for the time being in a macro environment where safe-haven demand and risk aversion intersect.
