What to know

Bitcoin dipped below $89,000 during Tuesday's early European hours as Nasdaq futures pointed to continued losses in technology stocks and strength in the Japanese yen sparked fears of an August-like risk aversion.

The leading cryptocurrency hit a low of $88,500, a level last seen in mid-November, CoinDesk data shows. Nasdaq futures dipped 0.3%, signaling an extension of a three-day losing streak. The tech-heavy index has dropped over 4% since Feb. 18.

The anti-risk Japanese yen traded at 149.38 per USD and looked set to challenge the near three-month high of 148,84 hit Monday. The JPY has strengthened nearly 6% in six weeks on bets that the Bank of Japan will raise rates.

The BOJ rate hike talk and the yen strength has revived memories of July when the yen surged on the central bank's rate hike, eventually leading to a broad-based risk aversion that saw bitcoin crash from roughly $65,000 to $50,000 within days.