Bitcoin sinks below $90K as large investors sell their holdings and haven seekers go elsewhere

Market Overview - Bitcoin has slipped back below $90,000 due to global market volatility, leading to reduced investor appetite for the cryptocurrency [1][2] - The recent geopolitical tensions, including tariff threats from President Trump, have contributed to a "risk-off" sentiment among investors [2][3] Market Dynamics - The combination of rising Japanese government bond yields and a volatile market environment has negatively impacted bitcoin prices [3][4] - Institutional investors have sold off holdings, resulting in nearly $500 million in outflows from U.S. spot bitcoin exchange-traded funds over two trading days [4][6] Liquidation and Leverage - Bitcoin's decline below $90,000 was exacerbated by over $1 billion in liquidations, primarily driven by a mechanical unwind of leveraged positions [6] - The inability of bitcoin to maintain upward momentum has forced leveraged traders to exit their positions, contributing to the price drop [7] Regulatory Environment - Bitcoin faces regulatory challenges, particularly with the Digital Asset Market Clarity Act stalled in the U.S. Senate, which has dampened institutional interest in increasing crypto holdings [7]