Bitcoin dropped during the hours of Asian negotiations, reaching a low month of $ 92,000 due to the aggressive aggressive prices of President Donald Trump.
This clear drop sparked one of the largest liquidation events of last year.
Red market
According to Cryptoslate Data, the RTB slowdown started on January 31 when it went from more than $ 105,000 to $ 102,000 in hours.
The decline continued throughout the weekend, pushing the BTC below $ 100,000 and causing the larger market.
Market data show that most altcoins are faced with similar difficulties. Ethereum fell by almost 20%, finding support just above the $ 2,500 bar.
On the other hand, Solana dropped by 10%, landing at $ 195. XRP decreased by 17% to $ 2.3 while other major assets, including Dogecoin and Cardano, lost around 20% each.
This price performance actually wiped out the gains made by these assets during the post-Trump electoral victory rally in December 2024.
The co-founder of Bitmex, Arthur Hayes, warned that more losses could follow. Hayes suggested that relief could only come if a great financial institution faces a crisis, which prompted the American federal reserve to intervene with liquidity measures.
He wrote:
“The blows continue until morality does not improve. The pain stops when a tradfi outfit is on the verge of bankruptcy. Then the Fed reluctantly joins the Trump team and prints this money. »»
Trump price
Analysts of the commercial company based in Singapore QCP noted that the newly imposed prices of President Donald Trump on the main business partners, including Mexico, Canada and China, have triggered the large market sale.
In addition, the company stressed that the market rut was distributed in all areas while “actions flowed in the regions, soaked gold, spiked oil and crypto was sold violently”. He added:
“This decorrelation strengthens the idea that today’s risk movement is motivated by the rebalancing of the cross portfolio rather than by an event to a single asset.”
On February 1, the American president obtained an obligation of 25% on imports from Canada and Mexico, in parallel with a tariff of 10% on Chinese products. His administration says that prices aim to approach illegal immigration and drug trafficking.
The prices have triggered immediate reprisals, Canada, Mexico and China responding with threats of countermeasures.
Liquidation in Gogo
The net slowdown on the cryptography market has led to generalized liquidations, destroying more than $ 2 billion and affecting more than 742,000 merchants, in accordance with Coinglass data.
Merchants with long positions – which provided price gains – supported the heaviest losses, collectively losing around 1.88 billion dollars. Those who occupy short positions expected new decreases, underwent losses of around $ 379 million.
Ethereum merchants have suffered the most, total liquidations reaching $ 611 million, of which $ 447 million came from long positions. Bitcoin followed closely, with $ 411 million in liquidations, including $ 340 million in long Paris.
Traders betting on other assets also lost $ 439 million during the reference period.
Meanwhile, the largest liquidation occurred on Binance, where an Ethereum trade of $ 25 million was completely wiped out.
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