According to Coinglass data, Bitcoin took a major hit plummeting to about $92,111 – a drop of over 8.5% in just one day. This dramatic fall wiped out roughly $1.23 billion in positions across various crypto derivatives platforms. The rapid sell-off reflects a deepening bearish mood, raising concerns about even more instability.
New Tariffs Stir Trade War Concerns
Financial markets are on edge after President Trump announced a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods. Affected nations have quickly retaliated, sparking worries of an escalating trade war. These moves have pushed up crude oil prices and caused a noticeable drop in US stock futures, reflecting growing investor concerns about global economic stability.
Multiple factors have driven this downturn, creating a cycle where fear of more losses leads to aggressive selling, which pushes prices even lower.
Profit-Taking: After Bitcoin’s impressive rally that pushed it past the $100,000 mark, many investors decided to lock in their gains.
Decreased ETF Inflows: A slowdown in interest for cryptocurrency-linked exchange-traded funds has further cooled the market.
Shifts in Investor Confidence: A noticeable drop in overall market sentiment has led investors to re-evaluate asset values across the board.
Liquidation Frenzy – Ripple Effects Across Cryptos
Bitcoin experienced one of its worst single-day declines in weeks after briefly reaching $101,361 over the weekend. The collapse led to heavy liquidations, wiping out about $222 million in Bitcoin longs and $221 million in Ethereum longs. Recent reports indicate that ETH fell by 11.3% during trading, partly due to the uncertainty sparked by uncertainties due to the global economy.
As the BTC price dropped below key support levels, exchanges had to close positions that no longer met collateral requirements. This set off a chain reaction of forced selling, further deepening the downturn. Lower liquidity over the weekend only intensified the volatility, increasing the risk of additional liquidations.
While the initial focus was on Bitcoin, the plunging impact on altcoins underscores a broader market fragility. Industry experts suggest that the volatility is partly fueled by profit-taking following an extended rally past the $100,000 mark, a classic case of market overextension.
Key Figures:
Beyond the immediate numerical losses, the incident highlights several systemic issues facing the cryptocurrency markets.
BTC Price: Fell from $101,361 to around $92,111.0
Liquidated Positions: $1.23 billion in total.
Notable Losses: Approximately $222 million in BTC longs; $221 million in ETH longs
Bitcoin Battles Bears as Support Levels Emerge
BTC recently hit a low of $90,944 and is now consolidating its losses. After a brief surge past $92,500 and a test of an important Fibonacci level, the bears have regained control near the $95,000 mark. Currently, Bitcoin is trading below this key level and the 100-hour Simple Moving Average. Immediate resistance remains strong around $95,000, with additional challenges at $96,500 and $98,400.
Should BTC fail to push above $95,000, we might see another dip. It seems to have some support around $92,500, with even stronger levels at $92,000 and $90,000. If the decline continues, support might drop further to about $88,500. Technical signals, including a bearish hourly MACD and an RSI below 50, confirm that the downtrend is still in effect.
Caution Amid Uncertainty:
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Some market players see this recent pullback as a temporary correction, while others worry that if liquidity remains scarce, losses could deepen. With key support levels breached and forced liquidations mounting, investors are now at a critical crossroads. While some see this drop as a temporary correction, others worry that continued low liquidity could lead to even deeper losses.
Market observers are closely tracking these developments, suggesting that the current turbulence might signal the onset of a more prolonged period of instability. Not everyone is losing sleep over the drop. Robert Kiyosaki, a financial author, sees it as a buying opportunity. He puts it this way:
“TRUMP TARIFFS BEGIN: Gold, silver, Bitcoin may crash. GOOD. I’ll buy more after prices fall. The real problem is DEBT… which will only get worse. Crashes mean assets are on sale. Time to get richer.”
Conclusion:
Bitcoin’s recent sharp decline, which wiped out $1.23 billion in liquidations, is a clear reminder of how unpredictable the crypto market can be. In times like these, it’s essential to proceed with caution, keep a close eye on market trends, and make well-informed decisions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. All predictions are based on current market analysis and may change over time. Always perform your own research and consult with a financial professional before making any investment decisions.
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Frequently Asked Questions (FAQs)
1. What happened to Bitcoin on Sunday?
It fell to about $92,111—a drop of over 8.5% in one day.
2. How much was lost during the crash?
Approximately $1.23 billion in positions were liquidated.
3. What triggered the aggressive sell-off?
Profit-taking after its rally and low liquidity sparked a cascade of forced liquidations.
4. How did the new tariffs affect financial markets?
Tariffs on imports from Canada, Mexico, and China have raised crude oil prices and dropped US stock futures.
5. What resistance levels are challenging Bitcoin?
Immediate resistance is around $95,000, with further hurdles at $96,500 and $98,400.
References,
Coinglass – https://www.coinglass.com/LiquidationData
Guardian.co – https://www.theguardian.com/us-news/2025/feb/02/trump-tariffs-mexico-canada-china-retaliation
News BTC – https://www.newsbtc.com/analysis/btc/bitcoin-price-displays-bullish-102k/
Robert Kiyosaki X – https://twitter.com/theRealKiyosaki/status/1885419383184646482?ref_src=twsrc%5Etfw
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
