Bitcoin drops to $ 89,000

Bitcoin BTC $88,132.41 Mezo Wrapped BTC -2.14% Market capitalization $51.54 million VOL. 24 hours $1.85 billion has dropped below $ 88,000 amid growing uncertainty in global financial markets. Over the day, the cryptocurrency lost 4.2%, falling to $ 87,900 after a daily high of $ 92,500. Ethereum ETH $2,960.66 Bridged Ether (StarkGate) -4.59% Market capitalization $69.68 million VOL. 24 hours $1.37 billion also dropped by 7.3% to trade at $ 2,953.

The drop in digital assets occurred in parallel with the decline in US stock indices: The S&P 500, Nasdaq, and Dow Jones all lost more than 2%, marking the worst trading session since October. Shares of cryptocurrency companies also declined: Coinbase by 5.6%, Circle by 7.5%, and BitMine Immersion by 9.4%.

According to Vincent Liu of Kronos Research, the market has been hit by a wave of liquidations due to deleveraging. Over the past 24 hours, positions worth about $ 1.07 billion have been liquidated, of which $ 999 million were long positions.

Analysts point to the escalating trade tensions between the US and the EU, the crisis in the Japanese government bond market, and the decline in pension funds' demand for US bonds as key pressure factors. According to Peter Chun of Presto Research, Japan was the epicenter of the panic.

Andri Fauzan Ajima, a researcher at Bitrue, notes that the level of $ 87,000-$ 88,000 is critical for supporting Bitcoin. If it breaks down, it could fall to $ 85,000. Investors are closely monitoring signals from the Fed, the dynamics of leverage in the derivatives markets, and the movement of institutional capital.