Selling pressure in the cryptocurrency market continued unabated throughout the day, with Bitcoin falling below the $90,000 level.
As of the time of writing, Bitcoin (BTC) is trading at $89,522, having lost approximately 4% of its value in the last 24 hours.
Market Downturn Driven by Macroeconomic Factors
The sharp decline in markets was driven by macroeconomic developments that weakened global risk appetite. The sharp volatility in the Japanese government bond market led investors to panic sell risky assets, while US President Donald Trump revived threats of tariffs on Europe. Trump’s statements suggesting he could use tariffs as leverage in his bid to buy Greenland increased uncertainty in global markets. Simultaneously, precious metals hit new record highs, signaling a strengthening trend towards safe-haven assets.
Altcoin Market Follows Bitcoin's Decline
The pullback in Bitcoin has also spread to the altcoin market. Ethereum (ETH) fell by 7.19% in the last 24 hours to $2,985; while BNB lost 3.95%, XRP 5.33%, and Solana (SOL) 5.63% of their value.
Significant Liquidations in Derivative Markets
With increasing selling pressure, liquidations in derivative markets have also reached remarkable levels. In the last 24 hours, a total of $685.49 million worth of positions were liquidated, with $626.15 million of that being long positions and $59.34 million being short positions.