Crypto Markets Slide as Global Risk-Off Wave Hits Bitcoin and Ether

Bitcoin and other major cryptocurrencies retreated late Tuesday as investors pulled back from risk across global markets, with mounting macroeconomic uncertainty weighing heavily on sentiment.

Bitcoin dropped more than 4% over the past 24 hours, sliding to around $88,700 after trading above $92,000 earlier in the day. Ethereum saw even deeper losses, falling over 7% to just under $3,000 as selling pressure intensified across the digital asset market.

The downturn in crypto closely tracked a broad sell-off in traditional markets. U.S. equities posted their worst session since October, with the S&P 500 and Nasdaq Composite both shedding over 2%, while the Dow Jones Industrial Average declined nearly 1.8%. Weakness also extended to bonds, reinforcing the broader risk-off mood.

Crypto-linked equities were not spared. Shares of major industry players fell sharply, with crypto exchanges, stablecoin issuers, and publicly listed firms holding large digital asset treasuries all posting sizable losses by the close of trading.

The rapid decline was amplified by forced position closures in derivatives markets. In the past 24 hours alone, total crypto liquidations climbed to roughly $1.07 billion, with the vast majority coming from long positions as leveraged bets were unwound.

Market participants cited a mix of macro pressures behind the sell-off, including escalating trade tensions between the U.S. and Europe, instability in Japan’s bond market, and shifting demand for U.S. Treasuries from large institutional investors. Together, these factors have dampened appetite for risk, pulling cryptocurrencies lower alongside stocks and other volatile assets.