Bitcoin (BTC) and other crypto majors plummeted late Tuesday below the $89,000 mark as a broad risk-off move rippled through global markets, triggered by President Donald Trump’s renewed push for U.S. control of Greenland and threats of tariffs on European nations.
Bitcoin Struggles Below $89,000
The price of BTC plummeted to as low as $87,901 on Tuesday, retesting its lowest level since December 31. At press time, Bitcoin was trading around $88,932, having lost 2% since this time yesterday, according to crypto data aggregator CoinGecko. The alpha crypto has now wiped out all gains earned so far this year and is down 10% from its year-to-date high of just around $98,000.
Ether sank roughly 5.6% to below $3,000, while Ripple’s XRP fell more than 1.7% on the day and over 11% on the week. Solana lost approximately 2.6% in 24 hours and about 11.4% over a seven-day period.
Crypto Market Hit By Liquidation Cascade
Following the sudden crash, the crypto market witnessed over $1.8 billion in liquidations over the last 24 hours, with approximately $999 million tied to leveraged bullish bets, according to Coinglass data. Liquidation refers to when an exchange forcibly closes a trader’s position in a particular due to partial or total losses or insufficient margin to meet the maintenance requirements.
A cascade of liquidations typically signals market extremes, where a price reversal could be on the horizon as market sentiment spikes in one direction.
Many attribute the market volatility to President Donald Trump’s threatened tariffs on several European nations that declined his proposal tied to Greenland. The president has pushed for U.S. control or acquisition of Greenland over the last week, threatening European nations resisting the idea with trade tariffs and economic retaliation.
Trump’s Greenland push and tariff threats have increased the risk of trade conflict and policy instability, pushing investors to cut exposure to global risk assets — including crypto.
At the same time, a complete annihilation in Japanese bond markets added bearish pressure, driving global yields higher as investors braced for increased government spending.
In the meantime, Bitcoin’s chances of recovering above $95,000 and Ether reclaiming the $3,000 support level hinge on whether President Trump can reach some sort of deal with European leaders during meetings slated for this week.
Source: https://zycrypto.com/bitcoin-slips-below-89000-as-trump-trade-turmoil-sparks-crypto-sell-off-with-1-8-billion-in-liquidations/
