coindesk.com
Crypto markets were caught in a sharp global selloff on Tuesday as a mix of geopolitical shocks and bond market stress flipped investors from risk-taking to capital protection, hitting major tokens hardest and pulling bitcoin below the $90,000 mark.
Bitcoin slid below $90,000, down about 3% over 24 hours, setting the tone for broader losses across crypto markets. Ether fell roughly 6.5% to below $3,000, while solana dropped more than 4% on the day and over 12% on the week. Cardano lost around 2% in 24 hours and about 15% over seven days, reflecting heavier drawdowns across higher-beta tokens as traders cut risk.
The move followed Wall Street’s worst session since April, with U.S. stocks, Treasuries and the dollar all falling after President Donald Trump threatened tariffs on several European nations that rejected his proposal tied to Greenland.
In the past week, Trump has pushed for U.S. control or acquisition of Greenland, warning European nations opposing the idea could face trade tariffs or economic retaliation.
Trump has argued Greenland should fall under U.S. control to counter Russia and China’s Arctic influence and secure long-term access to strategic shipping routes and minerals.
Trump’s Greenland push and tariff threats raise the risk of trade conflict and policy instability. That spooks investors, lifts bond yields and volatility, and makes traders cut exposure to riskier assets — including bitcoin, which still trades like a high-beta asset during stress.
Altcoins, which tend to react more aggressively when risk appetite fades, led the decline as traders cut exposure to higher-volatility assets first.
Bitcoin, often treated as the entry and exit point for crypto risk, followed lower as leveraged positions were forced out.
According to CoinGlass data, more than $1.09 billion in crypto positions were liquidated over the past 24 hours, with nearly 92% tied to long bets. The scale of the liquidations showed how crowded bullish positioning had become before the move.
What made this selloff different was the macro backdrop.
Trump’s tariff threats landed at the same time as a sudden rout in Japanese government bonds, where yields on long-dated debt surged to record levels on concerns about fiscal sustainability.
That shock rippled through global bond markets, pushing U.S. yields higher and tightening financial conditions across the board.
When bonds sell off sharply, it raises borrowing costs and reduces the appeal of speculative trades. That matters for crypto, which still trades like a high-risk asset during periods of stress.
As yields rise and volatility jumps, investors tend to pull money from assets with weaker cash flows or unclear near-term catalysts.
Gold’s move told the same story. Prices surged to fresh all-time highs as investors rushed into traditional safe havens, a clear sign that capital was rotating away from risk rather than being selectively reallocated.
For months, traders had largely ignored political noise, betting that strong liquidity and enthusiasm around artificial intelligence would carry markets higher.
Tuesday’s move suggested that tolerance for fresh shocks is wearing thin. The combination of trade threats, European tensions and bond market instability proved enough to break the calm.
For crypto markets, the episode was a reminder that global politics and bond markets still matter — especially when positioning is crowded and volatility has been pushed too low.
As Trump heads to Davos and investors watch for signs of further fallout in rates and currencies, crypto traders are now left asking whether this was a quick reset — or the start of a more defensive phase for the volatile market.