Bitcoin Falls Below Key Threshold
Cryptocurrency markets declined Tuesday as Bitcoin fell beneath the $90,000 threshold while equity markets absorbed fresh geopolitical uncertainty. The digital asset traded at $90,535 after briefly dipping to $89,929, and recorded a 2.5% loss across 24 hours.
Market activity intensified following the holiday weekend, with trading volume climbing 14% to reach $68.6 billion. U.S. financial markets remained closed Monday for Martin Luther King Jr. Day, though crypto exchanges maintained continuous operations throughout the period.
Cryptocurrency-Related Stocks Underperform
Cryptocurrency-related stocks experienced steeper losses than broader indices. Strategy shares dropped over 6% to $162.60 despite the company's recent announcement of substantial Bitcoin acquisitions. The Nasdaq-listed stock reached weekly lows below $160 during Tuesday trading.
SharpLink Gaming fell 7.8% to $10.14 as investors reassessed digital asset treasury companies. The firm maintains roughly $2.4 billion in Ethereum holdings, which CEO Joseph Chalom recently characterized as "permanent capital" during a Rug Radio broadcast.
MARA Holdings declined 5.7% to trade at $10.70. The mining operation recently finalized arrangements with MPLX to secure natural gas supplies for Texas-based data center operations, including facilities currently under development.
Ethereum Weakness and Market Dominance
Ethereum weakness outpaced other major digital assets, falling more than 6% to slip below $3,000 for the first time since early January. Bitcoin's share of total cryptocurrency market capitalization expanded to 59.8%, reflecting widespread altcoin underperformance.
Analyst Outlook and Market Consolidation
Bitfinex analysts noted the recent tariff proposals generated limited immediate market reaction but contributed to broader geopolitical uncertainty. Wintermute researchers suggested Bitcoin appears positioned for consolidation rather than breakdown, though they cautioned the $90,000 level must hold to prevent testing the mid-$80,000 range.
Global Market Reaction and Safe-Haven Assets
Global markets experienced widespread risk asset liquidation as Japanese government bonds faced severe pressure. Tokyo's Nikkei index fell 2.5% while Frankfurt's DAX lost 1%. Precious metals attracted safe-haven flows, with gold advancing 3% and silver surging 7% to establish new record pricing.