BITCOIN FALLS UNDER $90K WHILE BNB, XMR, AND PUMP SLIDE AMID U.S.–EU TRADE CONCERNS

Bitcoin falls below $90K amid U.S.–EU trade tensions: Crypto prices declined today as renewed selling pressure spread across global markets, pushing Bitcoin below the $90,000 mark and pulling most major altcoins lower.

At the time of writing, the total cryptocurrency market capitalization had fallen by 3.4% to around $3.1 trillion. Bitcoin was trading near $89,384, reflecting a 3.2% drop over the past 24 hours. Altcoins saw sharper losses, with Binance Coin down 5.2% to $879, Monero sliding 19% to $491, and Pump fun falling 5.9% to $0.002436.

Market stress was also visible in sentiment and derivatives indicators. The Crypto Fear & Greed Index dropped eight points to 24, placing sentiment firmly in the “extreme fear” zone. According to CoinGlass data, 24-hour liquidations surged 481% to $1.09 billion, while total open interest across the crypto market declined 1.73% to $133 billion.

Despite the broad sell-off, technical indicators suggest the market has not entered full capitulation. The average relative strength index remained near 40, signaling continued weakness but not an extreme oversold condition.

Geopolitical Tensions Weigh on Risk Assets

The recent market downturn appears closely linked to rising political and economic uncertainty, driven by renewed tensions between the United States and the European Union. Over the weekend, U.S. President Donald Trump signaled that Washington could introduce new tariffs on several European countries, starting at 10% and potentially increasing if negotiations fail.

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The situation is part of a broader dispute involving Denmark and Greenland. European Union officials have warned that retaliatory measures worth up to $100 billion are under consideration. Fears of an escalating trade conflict have prompted investors to move away from riskier assets, putting pressure on both equities and cryptocurrencies.

Global Bond Market Stress Adds to Selling Pressure

Market weakness was further intensified by fresh volatility in global bond markets, particularly in Japan. Government bond yields saw sharp movements, with 10-year yields briefly reaching their highest level since 1999 before easing after officials attempted to reassure investors.

Recent bond auctions also showed weak demand, raising concerns about rising borrowing costs and government debt sustainability. As yields climbed, leveraged positions across crypto markets were quickly unwound, accelerating the sell-off.

Investors Shift Toward Safe-Haven Assets

While crypto and stock markets moved lower, capital flowed into safer assets. Spot gold surged past $4,800 per ounce, setting a new all-time high after gaining roughly $500 since the start of the year. The move highlights growing demand for stability amid heightened geopolitical and financial uncertainty.

Short-Term Outlook Remains Cautious

In the near term, analysts warn that downside risks could persist if tariff tensions continue or intensify. Bitcoin may revisit the $85,000 to $88,000 range if selling pressure builds further. Altcoins could face steeper declines, with potential losses of 5% to 10% during periods of low liquidity.

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However, sharp rebounds remain possible. Any signs of easing trade tensions or more positive headlines could trigger a quick recovery toward the $92,000 to $94,000 range, particularly if large buyers step in during dips.

Longer-Term Optimism Still Intact

Fundstrat chairman Tom Lee noted that both crypto and equity markets could face additional pressure early in the year due to tariffs and political uncertainty. However, he expects a rebound later in 2026, suggesting Bitcoin could reach new record levels once excess leverage is cleared and institutional participation continues to grow.

For now, crypto markets remain volatile, with investors balancing short-term uncertainty against longer-term growth expectations.

Conclusion

Crypto markets faced renewed pressure as global risk sentiment weakened, pushing Bitcoin below the $90,000 level and dragging major altcoins lower. Rising U.S.–EU trade tensions, bond market volatility, and reduced risk appetite have driven short-term caution among investors. While technical indicators suggest the market has not entered full capitulation, uncertainty remains elevated. In the near term, prices could stay volatile, though longer-term optimism persists as analysts continue to point to institutional participation and structural growth as key drivers once current pressures ease.