Bitcoin drops below $90,000 as global markets sell off

Bitcoin dropped below US$90,000 for the first time since January 9, amid a broader selloff in global financial markets caused by geopolitical tensions.

The cryptocurrency declined by about 0.5% to US$88,900 as of early Asia trading hours, following a 4% fall the previous day. Smaller tokens like ether and Solana also saw significant declines, with ether dropping over 7%.

Shares in crypto-related companies, including Coinbase and Strategy Inc., fell 5.6% and nearly 8%, respectively.

Market declines have been linked to geopolitical concerns, including US President Donald Trump’s threats over Greenland and tensions affecting European and Japanese bonds.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Year-to-date ETF inflows may obscure current daily flow volatility

$1.2 billion in year-to-date inflows for US-listed Bitcoin ETFs has been recorded so far this year, yet daily flow direction during the current selloff needs to be checked.
Large swings have been seen before, with more than $3.4 billion pulled over the past month during a prior downturn 1.
A $394.7 million net outflow was logged in one day, and a prior inflow streak was stopped 2.
The latest creation and redemption data (the share issuance and cancellation activity that tracks ETF inflows and outflows) should be reviewed for top funds like BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) to judge whether selling pressure is being absorbed or being amplified as Bitcoin falls alongside equities and government bonds 2.

Risk-off rotation highlights tokenized Treasuries as an on-chain “cash-equivalent” option

Crypto exchanges and other trading platforms can use the flight to safety to offer more than spot trading in major tokens.
During choppy macro conditions, many investors cut risk and park money in on-chain cash equivalents instead of moving fully to fiat currency held in a bank.
The market for tokenized U.S. Treasuries (blockchain-based tokens that represent claims on US government debt) totals about $9.05 billion, the largest segment of the $21.35 billion real-world asset sector in early 2026 3.
Adding these yield-bearing tokens can help platforms keep customer assets during downturns and meet demand for stable, on-chain collateral (assets posted to secure trading or borrowing) as investors rotate away from risk 4.