Under Trump's tariff threats, Bitcoin drops below $90,000 as market risk aversion intensifies

Source: BlockMedia Original Title: [New York Coin Market/Closing] Bitcoin Drops Below $90,000 Amid Tariff Fears… “Withdrawing Funds to Safe Assets” Original Link: https://www.blockmedia.co.kr/archives/1034278 The New York digital asset market on the 20th was affected by President Trump’s warning about tariffs on Europe, turmoil in the Japanese government bond market, and a sharp decline in liquidity, leading to a downward trend. Bitcoin briefly fell below the $90,000 mark, reflecting a contraction in overall risk asset investment sentiment. Related tokens and mainstream altcoins also weakened simultaneously.

Major Coin Trends: Bitcoin Down 3.8%… Ethereum, Solana Decline in Tandem

Bitcoin(BTC) fell 3.89% from the previous day, quoted at $89,414, breaking below the $90,000 support level. Trading volume increased by 22.4% to $48.56 billion, with active trading within the decline range. Bitcoin’s market cap is approximately $1.788 trillion, down 4% in one day, with Bitcoin dominance remaining at 59.3%.

Ethereum(ETH) plummeted 6.95%, quoted at $2,992; Solana declined 5.55% to $126.9. XRP fell 5.67%, Cardano(ADA) dropped 5.28%, Dogecoin(DOGE) decreased 4.70%, with mainstream altcoins experiencing nearly double-digit adjustments.

Altcoins All Decline… Overall Market Risk Aversion Reflected in Liquidity

The total digital asset market cap decreased by 2.74% to $3.05 trillion, with the CMC20 index dropping 4.18%. Altcoins based on Ethereum experienced relatively larger declines, including privacy coins: Monero(XMR) plunged 11.6%, Dash(DASH) fell 8%. Meanwhile, the DeFi total value locked(TVL) continued to rise, indicating defensive liquidity, and some small altcoins even rose against the trend.

This day’s decline in the digital asset market is interpreted as a reaction to macroeconomic risk factors rather than fundamental issues with individual coins.

Market Decline Background: Trump’s Tariff Remarks, Japanese Bond Market Instability, Liquidity Drop

The immediate market shock was triggered by President Trump’s remarks about re-imposing tariffs on European countries. He threatened to “impose tariffs on European countries opposing Greenland sovereignty,” reaffirming his protectionist stance. At the same time, Japanese government bond yields surged sharply, causing anxiety in the global bond markets.

Traditional financial markets also responded, with major US indices(S&P 500, Dow Jones, Nasdaq) falling about 2%, and digital assets including Bitcoin being classified as risk assets, facing selling pressure.

In particular, during this decline, open interest in Bitcoin derivatives on exchanges increased from $28.5 billion to $29.3 billion, indicating increased short positions. This led to increased bearish bets based on short positions, further amplifying market volatility.

Expert Analysis: “The $90,000 Level Is a Psychological Support”

A research team from a leading exchange stated, “This tariff-related remark itself is less impactful than the geopolitical uncertainties and policy risks accumulated over the past year on investment psychology,” and analyzed that “the $90,000 level will serve as a psychological support in the short term.”

A report from a trading platform diagnosed that “this adjustment is more likely part of a coiling phase rather than a trend reversal,” and added, “if the $90,000 support does not hold, there is a possibility of retesting the $80,000 mid-term level.”

The CEO of a gaming company said, “Last year was the initial accumulation period for digital asset trust(DAT), and this year should be a period of pursuing productivity and efficiency,” emphasizing the importance of long-term strategy.

Future Strategy: “$90,000 Psychological Support Is Key”… Gold’s Role Expands

An CEO of an investment group pointed out, “Current liquidity contraction combined with geopolitical uncertainties makes gold more attractive than Bitcoin as a more certain hedge.” In fact, gold rose 3% on the day, surpassing $4,750 per ounce, reaching a new high; silver also surged 7%, stabilizing above $95.