Bitcoin sinks below $89,000 as US equities and Japan bond turmoil rattle markets
Bitcoin dropped below $89,000 amid a global risk-off sentiment driven by sharp losses in US equities and turmoil in Japanese bond markets.Summary
Bitcoin (BTC) and other major cryptocurrencies declined significantly on Tuesday, with Bitcoin falling 4.2% to trade around $88,746, mirroring sharp losses across global risk assets. The sell-off was attributed to a broad risk-off move fueled by macro uncertainty, including significant drops in US equities (S&P 500 and Nasdaq fell over 2%) and pressure on crypto-related stocks like Coinbase. Analysts cited leverage unwinds and macro headwinds, specifically rising US-EU trade tensions and turmoil in Japan's bond market, as key drivers. The epicenter of the panic was reportedly the sell-off in Japanese Government Bonds (JGBs), which pushed long-term yields to multi-decade highs, a phenomenon dubbed "Japanic." This situation is complicated by Japan's upcoming snap election. Crypto markets saw about $1.07 billion in liquidations in 24 hours. Traders are now watching Bitcoin's support level between $87,000 and $88,000 for signs of stabilization.
(Source：The Block)