Bitcoin has broken below the critical $90,000 support level, sliding to around $88,000, as escalating geopolitical tensions and a flight to safety hammered risk assets across global markets. The sell-off was triggered by renewed trade war fears, with former President Donald Trump doubling down on threats to impose tariffs of 10-25% on eight NATO allies over Greenland, creating a transatlantic crisis.
The crypto market witnessed massive liquidations, with over $1.07 billion in positions wiped out in 24 hours. Bitcoin and Ethereum accounted for the vast majority, with $440.19M and $392.38M in liquidations, respectively. This contributed to a total crypto market cap decline of 3.9% to $3.09 trillion. Nearly 181,570 traders were liquidated, with long positions suffering $998.33M in losses.
The geopolitical uncertainty has fueled a historic rally in traditional safe-haven assets. Spot gold surged past $4,800 per ounce for the first time, while silver also hit record highs around $94.73. This capital flight from speculative assets like crypto into gold underscores a broad "Sell America" sentiment, pressuring the U.S. dollar.
The tariff threats hinge on a pending U.S. Supreme Court ruling on the International Emergency Economic Powers Act (IEEPA), which could grant the president sweeping authority to impose tariffs. Treasury Secretary Bessent claimed it's "very unlikely" the Court blocks these emergency powers. European leaders are preparing countermeasures, including potential 93-billion-euro tariffs on U.S. imports, with an emergency EU summit scheduled.
The risk aversion spilled over into equity markets globally. Wall Street saw its worst day since October, with the S&P 500 falling 2.06% and the Nasdaq sinking 2.4%. Losses extended into Asia, with Japan's Nikkei dropping 1.2% for a fifth straight decline. Crypto-related stocks like MicroStrategy and Marathon Digital fell more than 5-6%.
Analysts note that Bitcoin's weakness appears more like consolidation than capitulation, but momentum has vanished. The price needs a decisive break above $93,000 to reignite bullish sentiment, while a failure to hold $90,000 could see a test of the $80,000 level. The delayed progress of U.S. crypto regulatory legislation has added further pressure to the market.
