Bitcoin’s sudden drop during the early Monday Asian session has flushed excess leverage from the system, triggering liquidations worth over $865 million.
The decline comes as U.S. stock and bond markets remain closed for the Martin Luther King Jr. holiday, with world leaders gathering in Davos for the World Economic Forum.
Crypto markets are reacting to the return of the U.S.-EU trade tensions, experts told Decrypt.
Bitcoin dropped 3.1% from $95,385 to $92,415, according to CoinGecko data. Roughly 90% of liquidations were from bullish investors betting on a continuation of last week’s uptrend.
Altcoins also dropped sharply, pulling the total crypto market capitalization down by 2.8% to $3.26 trillion over 24 hours. The market has lost over $111 billion in value since last Thursday.
