Bitcoin experienced a significant decline, reaching its lowest level in over a week. This drop mirrored a broader sell-off across global financial markets, as investors continued to reduce risk exposure amid ongoing geopolitical tensions. The largest cryptocurrency fell below $US90,000 for the first time since January 9, moving in tandem with declines observed in equities, long-dated Treasuries, and Japanese bonds, as volatility impacted debt markets.
Smaller, less liquid tokens experienced even steeper declines. Ether dropped by more than 7 per cent, while Solana slumped by 5.3 per cent. Shares in crypto-linked stocks also took a hit, with Coinbase Global falling by over 5 per cent. Bitcoin accumulator Strategy also experienced a sharp decline, nearing 10 per cent earlier in the day.
Shiliang Tang, managing partner at Monarq Asset Management, commented on the market movements: “Bitcoin’s sharp drop over the weekend mirrors a broader exodus from risk assets in traditional macro markets due to the White House’s threat of tariffs on European nations as well as geopolitical frictions over Greenland.”
Tang further noted, “Gold and Silver’s rally as well as the dollar’s weakness all underscore this narrative of capital fleeing to safety triggered by aggressive US posturing.” These observations suggest a shift towards safer assets as investors react to the current global economic and political climate.
