Bitcoin dropped to $90,000 on Tuesday amid escalating trade tensions between the United States and European nations, pulling cryptocurrency-related equities lower across the board.
The decline marks an 8% fall from Thursday’s highs and reflects broader market weakness affecting tech stocks and digital asset investors. The sell-off coincides with heightened geopolitical uncertainty surrounding tariff threats and international trade disputes.
President Donald Trump has indicated plans in the previous days to impose a new 10% tariff on Denmark and other European countries, with these nations preparing retaliatory taxes on U.S. imports. Prediction markets currently price just a 20% probability that Trump acquires Greenland before 2027, according to Polymarket data.
Cryptocurrency and blockchain-related equities equally experienced significant declines on Tuesday. Microstrategy (MSTR) dropped 6% to $164, while Galaxy Digital (GLXY) fell 8% to $32 and Iris Energy (IREN) declined 8% to $53.
Major crypto platforms also felt the pressure. Coinbase (COIN) and Circle Internet Financial (CRCL) both fell approximately 5%, tracking the broader tech sector weakness that affected all Magnificent Seven stocks with losses ranging from 1% to 3%.
Tech index futures faced additional headwinds ahead of the U.S. market open. The Invesco QQQ Trust Series, which tracks the tech-heavy Nasdaq 100 index, declined 2% in pre-market trading following the long weekend observance of Martin Luther King Jr. Day.
Traditional safe-haven assets continued their upward trajectory amid the market uncertainty. Gold traded above $4,700 per ounce, up 9% year-to-date, while silver pushed above $95 per ounce with a 32% gain over the same period.
Global bond markets showed signs of stress from the escalating tensions. U.S. Treasury yields rose during the session, while Japanese long-dated bonds remained under significant pressure, with 30-year government bond yields surging close to 4%.
The U.S. dollar index (DXY), a key indicator of dollar strength against major currencies, fell 0.5% to 98.5, suggesting some weakness in the greenback as geopolitical uncertainty persists.
Market analysts attribute the crypto decline primarily to the broader sell-off in technology stocks and risk assets, as investors sought shelter from mounting trade war concerns. The combination of tariff threats and international tensions created a risk-off environment affecting digital assets alongside traditional equities.
Bitcoin’s performance remains sensitive to macroeconomic factors and trade policy developments, with each new announcement regarding potential tariffs or trade disputes affecting investor sentiment in the cryptocurrency market.
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