Bitcoin Drops Below $89K, Reaching 3-Month Low Amid Nasdaq Weakness and Yen Strength

Bitcoin Drops Below $89K, Reaching 3-Month Low Amid Nasdaq Weakness and Yen Strength

Bitcoin fell under the $89,000 mark during early European trading on Tuesday, mirroring extended declines in technology stocks as indicated by Nasdaq futures. Simultaneously, a strengthening Japanese yen fueled concerns of a renewed risk-off sentiment, reminiscent of past market downturns.

The leading cryptocurrency hit a low of $88,500, a level last observed in mid-November. Meanwhile, Nasdaq futures slipped by 0.3%, extending a three-day decline, with the index having already fallen more than 4% since February 18.

The Japanese yen, often considered a safe-haven asset, traded at 149.38 per USD and appeared poised to challenge Monday’s near three-month peak of 148.84. Over the past six weeks, the yen has appreciated nearly 6% amid growing speculation that the Bank of Japan may move toward an interest rate increase.

Discussions surrounding a potential BOJ rate hike, along with the yen’s rally, have reignited memories of last July when a similar surge in the currency led to widespread risk aversion. During that period, bitcoin plummeted from around $65,000 to $50,000 within days, underscoring the impact of shifts in monetary policy on global asset markets.