Bitcoin Price Analysis: BTC Plunges Below $90,000 Amid Rising Tariff Concerns And Geopolitical Tensions
Bitcoin (BTC) fell nearly 5% on Tuesday as it erased almost all of its 2026 gains. The flagship cryptocurrency fell to a low of $87,767 on Tuesday, reclaimed $89,000 on Wednesday, before moving to $89,325. Meanwhile, gold and silver continued rising to new highs while traditional and cryptocurrency markets panicked.
Analysts attributed the crypto market selloff to President Trump’s latest tariff threats as tensions between the US and EU escalate. Additionally, rising US and Japanese bond yields indicate macroeconomic stress, further dragging crypto lower.
Bitcoin (BTC) Looks Weak Despite Institutional Inflows
Bitcoin (BTC) briefly slumped below $88,000 on Tuesday as the broader cryptocurrency market remained under pressure. Altcoins, including Ethereum (ETH), Solana (SOL), and Ripple (XRP), are also trading deep in the red. Analysts believe the current market structure suggests controlled risk reduction, not panic selling. They also highlighted that sentiment gauges were showing neutral readings, and Altcoin Season Index remained low, meaning capital continues to favor Bitcoin.
According to CoinShares, institutional positioning remains a key stabilizing factor. Bitcoin ETFs recorded significant inflows last week. The inflows were the strongest weekly inflows of 2026 and the largest since October 2025. The inflows helped Bitcoin reinforce its position as the primary asset for investors during periods of market uncertainty.
Bitcoin (BTC) and Ethereum (ETH) Dominate Liquidations
Bitcoin (BTC) and Ethereum (ETH) accounted for a significant chunk of liquidations, with $440.19 million in Bitcoin liquidations and $392 million in Ether. Smaller tokens accounted for $52.60 million in liquidations. The mood also dragged equities in Asia lower, with losses extending into a third session. The MSCI’s Pacific Index outside Japan fell 0.3% in early trading, while Japan’s Nikkei fell 1.2%. European markets fared no better with the Euro Stoxx 50 futures and DAX futures both slipping 0.4%.
In the US, Wall Street fell by over 2% overnight, with the S&P 500 declining 2.06%. The Nasdaq Composite fell 2.4%. However, Nasdaq and S&P 500 Futures steadied themselves and rose 0.2%.
Smart Money Betting On Bitcoin
Santiment analysts believe the crypto market is primed for a breakout as Bitcoin whales and sharks accumulated 36,322 BTC over the past nine days, while retail traders cut their exposure to the asset. The analytics platform stated in a post on X,
Bitcoin’s price has fallen back down to $89.4K as gold & silver continue to surge. That said, Bitcoin’s whales & sharks continue to accumulate.
The platform noted in its post that Bitcoin wallets holding between 10 and 10,000 BTC had accumulated over $3.21 billion worth of Bitcoin. Meanwhile, retail wallets offloaded approximately $132 BTC, worth $11.66 million, over the same period.
Optimal conditions for a crypto breakout are when smart money accumulates and retail dumps. Geopolitical issues aside, this pattern continues to create a long-term bullish divergence.
Crypto Bill Will Need Concessions To Be Made: Trump Advisor
The executive director of the President’s Council of Advisors for Digital Assets, Patrick Witt, believes that a crypto market structure bill must be passed quickly, while the Senate can still cut deals to advance it. However, he noted that compromises will be needed to secure the 60 votes needed to pass the legislation. Witt stated,
There *will* be a crypto market structure bill — it’s a question of when, not if. Assuming a multi-trillion-dollar industry will continue to operate indefinitely without a comprehensive regulatory framework is pure fantasy. Let’s keep working to improve the product, recognizing that compromises will need to be made to get 60 votes in the Senate, but let’s not let perfect be the enemy of the good.
Witt urged stakeholders to “take advantage” of the opportunity to pass the market structure bill under President Trump and Republican control of Congress, claiming that Democratic lawmakers would write “punitive legislation.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) faced renewed selling pressure on Tuesday as it lost the crucial $90,000 mark. The flagship cryptocurrency fell nearly 5% to a low of $87,767 before reclaiming $88,000 and settling at $88,310. The flagship cryptocurrency has recovered during the ongoing session and is up 1.12% at $89,301. Bitcoin (BTC) plunged on Tuesday as over $1.8 billion was liquidated amid renewed geopolitical and tariff tensions. The flagship cryptocurrency fell to a low of $87,828 before reclaiming $89,000 and moving to its current level. As a result, BTC has wiped out nearly all of the gains made this year, and has fallen 10% from its year-to-date high of just under $98,000. It has also fallen below the 50-day exponential moving average (EMA), which acted as a crucial support level during recent rallies.
According to analysts, the crypto market has shed over $225 billion in market capitalization, the largest since mid-November. The analysts stated that Trump’s renewed tariff threats and escalating tensions over Greenland prompted a repeat of the “sell America” trade that emerged after April’s tariff announcement. However, some analysts believe there are other factors at play.
Dan Tapiero, founder and CEO of 50T Funds, believes the downturn was due to the “complete annihilation in Japanese bond markets infecting all markets right now.” He also predicted more upside for gold and silver, with Bitcoin to follow. US Treasury Secretary Scott Bessent echoed a similar view on Tuesday, stating,
I believe markets are going down because the Japanese [10-year] bond market had a six-standard-deviation move over the past two days. This has nothing to do with Greenland.
According to Jeff Ko, Chief Analyst at CoinEx Research, the jump in Japanese bonds was driven by fiscal uncertainty and rising market volatility.
This threatens to accelerate the carry trade unwind, further tightening a critical source of global liquidity. Beyond the trade war, a capital war appears to be emerging. Fund flows are shifting away from US assets as geopolitical tensions mount. Bitcoin finds itself caught in a tug-of-war — while it shares characteristics with hard assets like gold, it’s currently being sold off due to its heightened sensitivity to liquidity conditions.
Bitcoin (BTC) ended the previous weekend in positive territory at $90,872. The price faced volatility on Monday, reaching an intraday high of $92,406 before settling at $91,188. Bullish sentiment intensified on Tuesday as BTC rallied, rising nearly 4% to $95,384. Buyers retained control on Wednesday as the flagship cryptocurrency crossed $97,000, reaching an intraday high of $97,963 before settling at $96,955.
Source: TradingView
Selling pressure returned on Thursday as BTC fell 1.41% and registered a marginal decline on Friday, settling at $95,504. Price action remained bearish over the weekend, with BTC dropping 0.41% on Saturday and 1.55% on Sunday to $93,633. Selling pressure persisted on Monday as the flagship cryptocurrency fell 1.15% to $92,559. Selling pressure intensified on Tuesday as BTC slipped below $90,000 and settled at $88,310. The price is up over 1% during the ongoing session, trading around $89,300.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.