BTC, BNB, XMR, PUMP slide

Crypto prices today fell as selling pressure returned across global markets, pushing Bitcoin below the $90,000 level and dragging most major altcoins lower.

At press time, the total crypto market value had dropped 3.4% to $3.1 trillion. Bitcoin was trading at $89,384, down 3.2% over the past 24 hours. Losses were heavier among altcoins. Binance Coin fell 5.2% to $879, Monero slid 19% to $491, while Pump.fun declined 5.9% to $0.002436.

Market stress showed up quickly in sentiment and derivatives data. The Crypto Fear & Greed Index dropped eight points to 24, moving deeper into “extreme fear.” CoinGlass data showed 24-hour liquidations jumping 481% to $1.09 billion. Open interest across the crypto market slipped 1.73% to $133 billion.

Despite the sell-off, the average market relative strength index hovered near 40, suggesting weakness without deep capitulation.

Geopolitical tensions pressure risk assets

The downturn appears tied to growing political and economic uncertainty following renewed friction between the U.S. and the EU. Over the weekend, President Donald Trump said the U.S. could impose new tariffs on several European countries, starting at 10% and increasing if talks break down.

The dispute is part of broader friction involving Denmark and Greenland, with EU officials warning that retaliatory measures worth up to $100 billion are being considered.

The prospect of escalating trade conflict has pushed investors away from riskier assets. Crypto followed equities lower as traders cut exposure and reduced leverage. The sell-off was made worse by fresh stress in global bond markets, particularly in Japan.

Japan’s government bond market saw sharp moves in recent days. Yields on 10-year bonds briefly climbed to their highest level since 1999 before easing slightly after officials tried to calm markets.

Weak demand at recent bond auctions raised concerns about higher borrowing costs and government finances, adding to the cautious mood. As yields climbed, leveraged trades across crypto were quickly forced out.

While crypto and stocks fell, money moved into safer assets. Spot gold surged past $4,800 per ounce, setting a new record after gaining about $500 since the start of the year.

Short-term outlook stays cautious

In the near term, many analysts see further downside risk if tariff tensions continue or escalate. Bitcoin could revisit the $85,000–$88,000 area if selling pressure builds. Altcoins may fall faster, with another 5% to 10% downside possible during periods of thin liquidity.

That said, sharp rebounds remain possible. Any easing in trade tensions or calmer headlines could spark a quick bounce toward the $92,000–$94,000 zone, especially if larger buyers step in on dips.

Fundstrat chairman Tom Lee said both cryptocurrency and equity markets could come under further pressure early in the year, citing tariffs and political strain. He added that a rebound is likely later in 2026, with Bitcoin potentially reaching a new record once excess leverage is clearedand institutional participation deepens.

For now, crypto markets remain volatile as investors weigh near-term uncertainty against longer-term expectations.