Bitcoin (BTC) fell below $89,000 in the early hours of Tuesday during European trading as Nasdaq futures indicated continued losses in the tech sector, while increased strength of the Japanese yen raised concerns of a repeat of August’s risk aversion.
The leading cryptocurrency registered a low of $88,500; this mark has not been seen since mid-November according to CoinDesk data. This decline follows a hesitance to adopt state-managed Bitcoin reserves in the United States.
Key Points:
- BTC reached a low of $88,500, a level not observed since mid-November.
- The decline aligns with dwindling global money supply early this year.
BTC’s struggles align with the overall market trends where risk appetite has diminished. Nasdaq futures slipped by 0.3% early in the day, extending a three-day decline that has seen the index drop over 4% since February 18.
Quote from Valentin Fournier:
“Despite U.S. President Donald Trump’s recent pro-Bitcoin stance, three state-level proposals for Bitcoin reserves failed in Montana, North Dakota, and Wyoming. The reluctance to adopt state-run Bitcoin reserves underscores the political risks, as policymakers avoid accusations of speculating with taxpayer funds.”
Continued Insights: Skittishness in traditional markets has been evident, with the anti-risk Japanese yen trading at 149.38 per USD, close to a three-month high. This surge is attributed to expectations that the Bank of Japan will implement a rate hike, similar to past signals that caused significant market fluctuations.
Closing Thoughts:
While analysts point to the connection between global money supply and BTC, it is imperative to monitor traditional market cues that may affect Bitcoin’s price in the near future.
UPDATE (Feb. 25, 09:12 UTC): Adds additional details.
