Analysis: With weakening risk appetite and tightening liquidity, Bitcoin is struggling to rebuild its upward momentum.

Singapore-based crypto investment firm QCP Capital published an analysis stating that global markets have shifted to a risk-averse mode due to soaring Japanese government bond yields and escalating trade tensions between the US and Europe, causing Bitcoin to fall below $90,000. The yield on Japan's 10-year government bonds rose to approximately 2.29%, the highest level since 1999, raising concerns about the country's fiscal sustainability. Japan's government debt-to-GDP ratio has exceeded 240%, with total debt approaching 1342 trillion yen, and debt servicing is projected to account for a quarter of fiscal spending by 2026. Meanwhile, President Trump announced a 10% tariff on eight European countries opposing US control of Greenland (effective February 1st, rising to 25% on June 1st), prompting Europe to quickly prepare countermeasures, potentially escalating bilateral relations, worth approximately $650-700 billion annually, into a confrontational phase. The European Parliament is considering suspending ratification of the agreement reached last July between the US and Europe.