Bitcoin Dips Below $89K Amid Nasdaq Slump and Yen Strengthening

Bitcoin (BTC) fell below $89,000 during early European trading on Tuesday, reaching $88,500, its lowest level since mid-November, according to CoinDesk data. The decline follows continued losses in tech stocks and renewed strength in the Japanese yen, sparking concerns of market-wide risk aversion.

Despite U.S. President Donald Trump’s pro-Bitcoin stance, proposals for state-managed Bitcoin reserves were recently rejected in Montana, North Dakota, and Wyoming. Analysts suggest political concerns over taxpayer funds may be a key factor. "A nationwide reserve strategy, potentially backed by bond issuance or gold sales, could be a more viable approach," said Valentin Fournier, an analyst at BRN.

Some experts link BTC's weakness to global money supply trends. "There’s often a lag between money supply changes and Bitcoin’s price action," noted Biwise’s head of research, Andre Dragosch. Since money supply recently bottomed out, BTC’s downturn may be short-lived.

Traditional markets are also signaling caution. Nasdaq futures declined 0.3%, extending a three-day losing streak, with the index down over 4% since February 18. Meanwhile, the Japanese yen surged to 149.38 per USD, nearing a three-month high amid speculation that the Bank of Japan (BOJ) may raise interest rates. The yen has strengthened nearly 6% in six weeks, a pattern that previously triggered broad risk aversion, leading to a sharp Bitcoin selloff.

"Massive yen strengthening sometimes coincides with risk-off sentiment," warned Joseph Wang of FedGuy.com. If history repeats, Bitcoin could face further downside pressure.