Financial markets have shifted into risk-off mode amid rising geopolitical tensions. The current situation is also weighing on bitcoin, said QCP Capital analystsFinancial markets have shifted into risk-off mode amid rising geopolitical tensions. The current situation is also weighing on bitcoin, said QCP Capital analysts

QCP Capital: Bitcoin Remains Under Pressure Amid Geopolitical Tensions

  • Japanese bond yields hit their highest level since 1999.
  • The US imposed tariffs on EU countries that opposed tighter control over Greenland.
  • Against this backdrop, Bitcoin is trading below $90,000, remaining sensitive to geopolitical tensions, QCP Capital stated.

Financial markets have shifted into risk-off mode amid rising geopolitical tensions. The current situation is also weighing on bitcoin, said QCP Capital analysts.

According to them, the yield on Japan’s 10-year government bonds rose to 2.29% — the highest level since 1999. This has heightened concerns about the sustainability of the country’s public finances, where government debt exceeds 240% of GDP, the note said.

In addition, the US announced new tariffs targeting eight European countries that spoke out against increased US control over Greenland. The initial 10% tariff will take effect on February 1, and could rise to 25% by summer. In response, the EU threatened to freeze ratification of the trade agreement reached in July, QCP Capital added.

The analysts noted that amid the broader drop in risk appetite, bitcoin is not behaving like a safe-haven asset. In their view, the leading cryptocurrency is acting like a high-volatility asset that is highly sensitive to rate changes and the geopolitical backdrop.

At the time of writing, bitcoin is trading near $89,000:

BTC/USDT chart on the Binance exchange. Data: TradingView.

Previously, CryptoQuant said that new whales have taken control of bitcoin. 

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