• Bitcoin dips below $90,000, hitting its lowest level since January 9 amid escalating geopolitical tensions.
  • A broader risk-off sentiment triggers liquidations and shifts toward safe-haven assets like gold, which surges to record highs.
  • Analysts view the decline as a macro-driven correction, with technical indicators pointing to further downside risk if support levels break.

Bitcoin fell below $90,000 on Tuesday, trading at approximately $89,991 in the afternoon, as a global selloff in bonds and equities intensified. The decline reflects a 3.22% decrease for Bitcoin, extending losses from earlier in the week and marking its lowest point since January 9. Ether fell 2.2% to $3,126, with other major cryptocurrencies also declining, amid a broader market downturn driven by escalating geopolitical tensions surrounding Greenland.

President Trump announced a 10% tariff on goods from Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom, and Norway, effective February 1, unless the U.S. is allowed to acquire Greenland. Trump indicated he will discuss Greenland at the World Economic Forum in Davos this week, reiterating that the island is important for U.S. national security. This move triggered broader market volatility, with long-dated U.S. and Japanese Treasury yields spiking and investors shifting toward safe-haven assets like gold, which surged to record levels above $4,700. According to people familiar with the matter, this risk-off sentiment pushed investors away from speculative assets like Bitcoin, leading to mass liquidations across crypto markets.

From a technical perspective, Bitcoin has fallen below its 50-day exponential moving average at $92,345 and is hovering near the $90,000 support level. The daily relative strength index dropped to 47, below the neutral level, while the MACD confirmed a bearish crossover, indicating further downside risk. A break below current support could trigger deeper pullbacks toward $85,569, aligning with the lower consolidation boundary. Liquidations have intensified, with approximately $260 million in long positions liquidated in the last 24 hours alone, following nearly $900 million in liquidations earlier in the week, reflecting the rapid unwinding of leveraged positions amid increased uncertainty.

Market analysts characterize the recent decline as a macro-driven correction rather than a fundamental breakdown in Bitcoin's demand. Ryan Lee, Chief Analyst at Bitget, stated that the drawdown reflects heightened geopolitical uncertainty and represents a liquidity adjustment rather than a structural shift in Bitcoin's narrative. He recommends traders interpret the move as a temporary pullback and accumulate at key support levels while monitoring geopolitical developments. Near-term price stabilization is expected around $85,000–$95,000 if trade tensions ease and risk sentiment normalizes. CoinSwitch Markets Desk noted that Bitcoin has remained within a broad $80K–$98K range for nearly 59 days, consistent with previous post-2022 consolidation phases that typically lasted 52–62 days before breakout moves.

Options market data shows rising demand for downside protection, signaling that investors believe macro risks are underpriced. Additionally, the Coinbase (COIN) Bitcoin Premium Index shows Bitcoin trading at a discount in U.S. markets compared to the global average, reflecting weak retail sentiment in the United States. A cryptocurrency regulatory bill in Congress was delayed after Coinbase objected to several proposals, adding another headwind to sentiment. Efforts to reach Coinbase for further comment were unsuccessful as of Tuesday afternoon. Without a resolution to the geopolitical tensions, analysts warn that Bitcoin could face further pressure, with next support levels at $84,000-$85,000.