Bitcoin (BTC) has extended its recent decline as turbulence in the Japanese bond market and a sharp sell-off in US equities rattle global investors.
The Bitcoin price has slipped below the closely watched $90,000 level, highlighting how sensitive crypto markets remain to macroeconomic shocks.
This latest downturn reinforces Bitcoin’s growing correlation with traditional risk assets during periods of financial stress.
Global market turmoil weighs on Bitcoin
At press time, Bitcoin was trading at around $89,833, down nearly 2% over the past 24 hours, after briefly dipping below $90,000.
The sell-off coincided with heightened volatility in the Japanese bond market, where long-dated government bond yields surged to multi-decade highs.
The rising yields in Japan have fueled fears of a disorderly unwind in the yen carry trade, a strategy that has long supported global liquidity.
As investors rushed to reduce risk, capital flowed out of equities, cryptocurrencies, and other high-beta assets.
US equities also came under pressure, amplifying the risk-off mood across global markets.
Major stock indices recorded sharp losses, reinforcing concerns that tighter financial conditions could slow economic growth.
Bitcoin, often viewed as a hedge in calmer periods, traded more like a speculative asset as liquidity tightened.
Ethereum and crypto markets follow Bitcoin lower
Ethereum (ETH) has mirrored Bitcoin’s weakness, sliding below the $3,000 mark during the broader market downturn.
The decline in Ethereum price reflects widespread deleveraging across crypto derivatives markets.
Market data shows significant long liquidations, with hundreds of thousands of traders forced out of positions as prices fell rapidly.
This wave of liquidations has accelerated the downside momentum for both Bitcoin and Ethereum.
Crypto-related stocks and digital asset funds have also declined, underlining the broad impact of the sell-off.
Spot Bitcoin ETFs have also recorded notable outflows, suggesting that some institutional investors opted to reduce exposure amid uncertainty.
Meanwhile, safe-haven assets such as gold are attracting renewed interest, signaling a defensive shift in investor positioning.
Why the Japanese bond market matters for Bitcoin
The Japanese bond market plays an outsized role in global finance due to decades of ultra-loose monetary policy.
For years, low Japanese yields encouraged borrowing in yen to invest in higher-yielding assets abroad.
As Japanese government bond yields rise, this trade becomes less attractive and, in some cases, unprofitable.
The resulting unwind drains liquidity from global markets, including cryptocurrencies.
Bitcoin’s recent move below 90,000 underscores how changes in global funding conditions can ripple quickly into digital assets.
The episode highlights that Bitcoin is not immune to macroeconomic shocks, especially during periods of rapid repricing in bond markets.
Bitcoin price forecast
In the short term, traders should closely watch the $88,000 to $90,000 zone, which has emerged as a key psychological and technical support area.
A sustained break below this range could open the door for a deeper pullback toward the $85,000 region.
On the upside, Bitcoin needs to reclaim and hold above $92,000 to $94,000 to signal renewed bullish momentum.
Failure to do so may keep the Bitcoin price range-bound as macro uncertainty persists.
From a longer-term perspective, the $100,000 level remains a critical threshold for restoring broader market confidence.
A decisive move above that level could shift sentiment back toward accumulation and trend continuation.
Conversely, if global bond yields continue to rise and US equities remain under pressure, Bitcoin could face extended consolidation or further downside.
For now, traders are likely to remain cautious, closely monitoring developments in the Japanese bond market, US equities, and overall liquidity conditions.