Bitcoin drops below $89K as market faces risk-off pressure

Bitcoin (BTC) fell 6% to $89,617, briefly touching a low of $88,355, as broader market uncertainty weighed on digital assets, according to The Block. Altcoins saw steeper losses, with ETH down 10.45%, Solana losing 12.6% and the overall crypto market dropping 6.8% in the past 24 hours. The decline follows increased risk-off sentiment in traditional markets after U.S. President Donald Trump announced plans to impose tariffs on Canada and Mexico. Standard Chartered's Geoffrey Kendrick noted that Bitcoin is caught in a broader sell-off driven by Solana-based meme coins and overall market bearishness. Despite the downturn, lower U.S. Treasury yields could support Bitcoin in the medium term, but Kendrick warned that Bitcoin could still drop to the low $80,000s before a rebound occurs. Traders are now watching the upcoming U.S. inflation data for signals on the Federal Reserve’s next move, which could influence a potential market recovery.