Bitcoin Falls Below $90,000 as Global Risk Sentiment Weakens

Bitcoin slipped below the $90,000 level on Thursday as investors reduced exposure to risk assets following renewed geopolitical uncertainty and continued weakness in global markets.

According to major exchanges, Bitcoin was last trading near $89,400, down roughly 4% over the past 24 hours. The decline extended losses seen earlier in the week as traders reacted to mounting global tensions and a cautious macro outlook.

The broader cryptocurrency market followed the move lower. Ethereum fell more than 3%, while several large-cap altcoins posted losses between 4% and 7%. Total crypto market capitalization declined alongside equities in Asia and Europe, reflecting a broader risk-off environment.

Market participants pointed to heightened geopolitical concerns as a primary driver of the selloff. Developments surrounding U.S. foreign policy and ongoing tensions between major global powers weighed on investor confidence, pushing capital toward safer assets such as government bonds and the U.S. dollar.

Bitcoin’s recent performance has increasingly mirrored movements in traditional markets. When equity futures weakened overnight, crypto assets moved lower in tandem, highlighting the growing sensitivity of digital assets to macroeconomic and political developments.

Analysts noted that Bitcoin had struggled to maintain momentum after failing to hold above the $92,000 level earlier this week. That price zone had acted as a short-term support area before breaking under selling pressure. Once breached, stop-loss orders and short-term liquidations added to downward momentum.

Derivatives data showed an increase in long position liquidations across major platforms, suggesting that leveraged traders were caught off guard by the speed of the decline. Funding rates across perpetual futures markets turned neutral to slightly negative, indicating a shift toward more cautious positioning.

While some investors continue to view Bitcoin as a long-term store of value, short-term price action remains heavily influenced by global sentiment. Recent episodes of volatility have underscored that Bitcoin trades less as an isolated asset and more as part of the broader risk universe during periods of uncertainty.

Web3-related tokens and projects also felt the impact of the selloff. Tokens tied to decentralized finance, infrastructure, and blockchain services broadly declined, reflecting reduced appetite for speculative exposure when macro risks rise.

Looking ahead, traders are watching whether Bitcoin can stabilize above the $88,000 to $89,000 range. A sustained break below that zone could open the door to deeper losses, while a recovery in global risk sentiment may help prices consolidate.

For now, market participants remain cautious, with attention focused on geopolitical headlines, macroeconomic signals, and upcoming policy developments that could influence risk appetite across financial markets.