Bitcoin Price Tumbles To $89K As Gold Hits New ATH

Bitcoin’s price fell to $87,800 in late trading on Tuesday, its lowest since December 31, as the asset erased its monthly gains amid a $220 billion crypto market sell-off linked to the Greenland crash and Japanese bond market woes.

BTC plunged nearly 2% over the last 24 hours to trade at $89,488 as of 2:20 a.m. EST, as broader crypto prices fell in step with Bitcoin.

Data from CoinMarketCap shows that the crypto space dropped 2% over the last 24 hours to a market capitalization of $3.02 trillion, with its average Relative Strength Index (RSI) falling into the oversold region around 39.88.

According to Coinglass data, total liquidations came in at $880 million due to the drop in the crypto market.

Meanwhile, Gold prices have jumped more than 6% this week, including today’s gains, to reach an all-time high of $4885/ounce, as escalating tensions linked to Greenland and renewed trade frictions rattled global markets and drove investors toward safe-haven assets.

Crypto Markets Pressured By Greenland Spat, Fiscal Risks

Bitcoin and broader crypto underperformance were chiefly fueled by heightened concerns over US President Donald Trump’s continued demands for Greenland.

Trump threatened to impose tariffs on eight European countries until a deal was reached and also declined to rule out military action against the Danish colony.

The renewed tariff threats prompted a repeat of the so-called “Sell America” trade that emerged after last April’s tariff announcement.

Meanwhile, Trump is set to attend the World Economic Forum in Davos, Switzerland, today, where he said he will speak with various parties about Greenland.

Mounting concerns over weak fiscal health also weighed on the crypto risk appetite. Global bond yields surged this week, with the spike originating in Japan as investors fretted over the country’s debt burden.

Geopolitical and fiscal fears left markets largely risk-averse, drawing bids away from speculative assets like crypto and into safe havens, especially gold.

Japanese 10-year government bond yields surged almost 19 basis points in two days, while 30-year yields posted their biggest daily jump since 2003 as investors braced for increased government spending and reduced liquidity.

With the drop, the prices were little cheered by top corporate holder, Strategy, which disclosed that it had purchased about 22,305 coins between January 12 and January 19, for a total of $2.13 billion.

The buy brings Strategy’s total BTC holdings to 709,715 tokens, reinforcing its spot as the world’s biggest corporate holder of the cryptocurrency.

Can Bitcoin Price Regain Its Footing?

Bitcoin is currently pulling back toward the $89,000 region, an area that overlaps with the 50-day Simple Moving Average (SMA) near $90,300. This zone has become an important short-term battleground as price digests the recent rebound.

Following the aggressive sell-off into late November, BTC bounced from the $82,000 demand zone, where buyers consistently stepped in. However, the recovery remains fragile. The 50-day SMA is still sloping downward, highlighting that medium-term momentum has not yet flipped bullish.

Bitcoin continues to trade well below the 200-day SMA, capping the price under long-term bearish pressure.

Bitcoin’s Relative Strength Index (RSI) is currently hovering in the low-to-mid 40s, below the neutral 50 mark. This shows weakening momentum after the RSI failed to sustain readings above the 55–60 range.

BTC/USD Chart Analysis: TradingView

The daily BTC/USD chart shows Bitcoin could still attempt another recovery, with the positive daily candle suggesting a push toward the $92,500 resistance zone, especially if short-term support holds. This region previously acted as support before the breakdown and now represents a critical test for any recovery.

On the downside, failure to defend the $88,000 support area could lead to a deeper pullback. In that case, the price of BTC may revisit the $84,000–$82,000 region, where the 0.5–0.618 Fibonacci retracement levels align with the previous demand area.