Bitcoin (BTC) fell below $88,000 on Tuesday, breaking a key psychological level as selling pressure spread across the broader crypto market amid growing geopolitical strain and renewed uncertainty around global trade and capital flows.
What Happened
Data from CoinMarketCap showed Bitcoin having made a low of $$87,814.93, down about 5% over the last 24 hours, marking its lowest level in weeks and extending a pullback that began as risk appetite weakened across global markets.
The move came as investors digested a fresh wave of political and economic headlines, including escalating trade rhetoric between the United States and Europe and broader concerns over how geopolitical disputes could spill into financial markets.
Data from Coinglass showed liquidations of over $1.2 billion, of which $989 million were long positions.
The sell-off was not limited to Bitcoin.
Ethereum (ETH) also moved lower, slipping below $3,000 as traders reduced exposure to large-cap digital assets.
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BNB (BNB) and Solana (SOL) followed a similar path, while XRP (XRP) also traded in the red.
Why It Matters
Analysts attribute the downturn to a confluence of factors, including fading ETF demand, unwinding leverage, and holiday-thinned trading volumes that persisted into the new year.
However, the narrative extends beyond technicals, with geopolitical tensions emerging as a pivotal driver of risk aversion across asset classes.
The World Economic Forum's Global Risks Report 2026 highlights geo-economic confrontation and interstate conflict as top threats, with economic downturns and inflation surging in short-term outlooks.
President Donald Trump's renewed tariff threats, particularly against European NATO allies over the contentious issue of Greenland's sovereignty, have rattled global markets.
These measures, which could escalate to 25% by June if unmet, target countries like Denmark, France, and Germany, potentially disrupting $500 billion in transatlantic trade.
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