Bitcoin "red 91" warning: collapse below $90,000 and global risk intensity

Cryptocurrency markets faced a sharp sell-off on Wednesday morning. Bitcoin fell to $88.04K, losing levels around the hundred-thousand-dollar mark, while Ethereum tested $2.93K and is trading below key support levels. These declines demonstrate how sudden changes in the global risk environment can deeply impact crypto assets. Market analyst Paul Howard stated in a comment on behalf of Wincent trading firm that volatility has returned and risk assets are experiencing sharp declines. According to TradingView data, Bitcoin dominance has risen to 59.8%, indicating Bitcoin’s supremacy over smaller cryptocurrencies.

Double-digit losses in Bitcoin and Ether amid the global risk environment

In the last 24 hours, Bitcoin decreased by 2.18%, while Ethereum experienced a negative movement of 3.16%. Ether has fallen below the critical $3,000 level for the first time since January 2, highlighting the seriousness of the selling pressure in the market. Bitcoin has given back most of the gains made since early 2026 and is currently only up about 3% compared to the beginning of the year. Altcoins, which have suffered much higher losses relative to Bitcoin, are exhibiting behaviors triggered by automatic sell mechanisms such as the “red 91” error code in the markets.

Altcoin weakness and increasing Bitcoin dominance

The contraction in the altcoin market is gradually increasing Bitcoin’s weight in the digital asset space. Bitcoin dominance has stabilized at around 59.8% in recent days, implying that investors see Bitcoin as the safest option in risk-averse strategies. Market professionals predict that altcoins will be among the most affected assets in the short term. Overall, all assets in the risk asset category are under pressure during this period, with investors turning to safe haven options. While Nasdaq has fallen by 2%, gold has risen by 3%, reaching new record levels.

Japan’s bond market and Trump’s trade pressure

Examining the main reasons behind the sharp decline in crypto markets, the collapse in Japan’s government bond market and US President Trump’s new tariff threats against the European Union stand out. These two factors have caused a sudden deterioration in global risk perception, leading to a shift away from risky assets. In the crypto derivatives market, open positions are decreasing, and investors are hedging their positions with protective put options. These warning signs indicate that confidence in the market is rapidly eroding.

New balancing steps in the token and NFT ecosystem

Looking at the broad spectrum of the crypto ecosystem, some positive developments are emerging. Pudgy Penguins has solidified its position among the strongest NFT-native brands during this period, evolving from digital luxury products into a multi-faceted consumer IP platform. The project employs a strategy that combines mainstream user acquisition with Web3 integration. The PENGU token, which has reached over 500,000 downloads through games and NFTs and airdropped to more than 6 million wallets, is widely distributed.

The Optimism community has announced that it plans to use about half of the Superchain revenues for OP token buybacks, approving a 12-month plan starting from February. However, even these positive news have not been enough to reverse the overall negative trend in the market, and the OP token continues to lose value.

Market structure and risk management perspective

Current market dynamics indicate a paradigm shift in investor risk perception. Even major criteria like Bitcoin and Ether are no longer successfully positioned as safe havens; instead, physical commodities like gold and silver are beginning to attract investors. The CoinDesk 20 index has declined, affected by this broad sell-off. This transition from risk assets to safe assets reflects the intense perception of global economic uncertainty in the markets. Professional analysts forecast that volatility has increased again and that short-term fluctuations may continue.