Bitcoin Drops Below $90,000, Signaling Market Concerns
The cryptocurrency market is in turmoil as Bitcoin extended its selloff, plunging below the critical $90,000 threshold. Global market instability, driven by increased liquidations and fears of tightening liquidity, has caused the most well-known cryptocurrency to erase its 2026 gains entirely. Analysts predict further downside risks unless key support levels are maintained.
Price Movements and Technical Analysis
Bitcoin’s recent decline began after failing to sustain support above $92,500. It experienced sharp declines through $91,000 and $90,500, eventually forming a new low at $87,784. Currently, it is consolidating losses, trading below the 100-hour Simple Moving Average and struggling to regain its momentum.
Critical resistance levels include $89,600 and $91,650, while key support spans between $88,000 and $87,500. Should Bitcoin fail to stabilize above $87,500, it risks further declines, potentially hitting $85,000 or lower.
Market Liquidations and Broader Crypto Declines
Over the last 48 hours, the crypto market experienced a massive $1.8 billion in liquidations, with 93% of these positions being long trades. Consequently, the market capitalization has dropped by $225 billion, marking the largest decline since November 2025. Additionally, Bitcoin has dipped below its 50-day EMA, signaling a shift toward bearish momentum.
Key Factors Influencing the Selloff
Renewed tariff threats by US leadership contributed to global volatility; however, experts highlight the turmoil in Japanese bond markets as a pivotal factor. Japanese 10-year government bond yields surged by 19 basis points in just two days, unsettling global liquidity conditions.
Dan Tapiero, CEO of 50T Funds, emphasized that this bond market chaos has infected financial markets worldwide. Similarly, US Treasury Secretary Scott Bessent warned of tightening liquidity from Japan’s volatility. These dynamics have spurred a capital war, intensifying a global liquidity crunch that impacts all markets, including cryptocurrencies.
Investor Outlook: Bitcoin’s Role as a Hard Asset
Bitcoin remains in a precarious position, balancing its appeal as a hard asset with its vulnerability to global liquidity conditions. For investors, this could be an opportune time to reassess long-term strategies. Products such as the Ledger Nano X, a cryptocurrency cold wallet, offer enhanced security for holding digital assets during times of volatility.
The Road Ahead
Bitcoin’s rebound will require the asset to overcome significant resistance levels and regain market confidence. While analysts remain cautious, some believe external factors like gold’s rising popularity could lend support to Bitcoin in the long term.
