Bitcoin Drops Below $89K as Nasdaq Futures Extend Losses and Yen Strengthens
Bitcoin (BTC) slid beneath the $89,000 mark on Tuesday, deepening its three-month low as broader market turmoil and risk-off sentiment weighed on crypto. Nasdaq futures signaled continued declines in technology stocks, while a strengthening Japanese yen fueled concerns reminiscent of past market downturns.
The leading cryptocurrency touched $87,000, its lowest level since mid-November, according to CoinDesk data. Ether (ETH) plunged 9% in the last 24 hours to $2,400, while Solana’s SOL tumbled 14%, extending its weekly decline to over 20%. Dogecoin (DOGE) and XRP (XRP) shed 11%, while the CoinDesk 20 Index (CD20), which tracks major digital assets, dropped 7%.
“Despite former U.S. President Donald Trump’s recent pro-Bitcoin stance, state-level initiatives to establish Bitcoin reserves were rejected in Montana, North Dakota, and Wyoming. The reluctance highlights the political risks associated with holding BTC in government treasuries,” said Valentin Fournier, an analyst at BRN.
Fournier suggested that a more feasible nationwide strategy could involve backing Bitcoin reserves with bond issuances or partial gold sales rather than direct state-level adoption.
Some analysts see Bitcoin’s weakness as tied to a contraction in global liquidity. “BTC’s price action is lagging behind money supply trends. With money supply bottoming out recently, this downturn may not last long,” noted Andre Dragosch, head of European research at Biwise.
For now, traders are eyeing traditional markets, where risk sentiment remains subdued. Nasdaq futures dipped another 0.3% on Tuesday, extending a three-day losing streak that has wiped out over 4% from the tech-heavy index since Feb. 18.
Meanwhile, the Japanese yen—often seen as a safe-haven asset—rallied to 149.38 per U.S. dollar, approaching Monday’s three-month high of 148.84. The yen has strengthened nearly 6% in the past six weeks amid growing expectations of a Bank of Japan (BOJ) rate hike.
Rising bets on tighter BOJ policy have revived memories of July’s yen rally, which triggered widespread risk aversion and sent Bitcoin plummeting from $65,000 to $50,000 in just a few days.
“Major yen appreciation often coincides with significant risk-off moves,” noted Joseph Wang, operator of research platform FedGuy.com.
