Trade War Fears Trigger Massive Crypto Liquidations: BTC Dips Below $92K
The crypto market is reeling from renewed US-EU trade war tensions—President Trump's bold threats of 10-25% tariffs on eight European nations (Denmark, Germany, France, UK, etc.) over the Greenland acquisition push have sparked global risk-off panic. EU leaders are gearing up for retaliatory measures worth up to €93B, amplifying fears of higher inflation, slower growth, and disrupted trade.
How It Hits Crypto Hard
Risk aversion spikes: Tariffs fuel macro uncertainty → investors dump high-risk assets like crypto for safe havens (gold just hit fresh ATHs ~$4,670+). BTC slid from mid-$90K+ highs to below $92K (briefly under $90K in some flashes), now steadying ~$91K-$93K per latest feeds.
Leverage wipeout: Overleveraged longs got crushed—CoinGlass reports $588M-$758M+ in 24h liquidations (longs dominating $528M+), with peaks like $758M flushed in just 4 hours. BTC led ($81M-$234M ranges across reports), ETH close behind ($66M+), alts like SOL dropping to ~$128-$130.
Cascade effect: Thin liquidity + sudden headlines = forced selling spirals. This deleveraging echoes classic macro shocks, flushing excess froth after recent rallies.
Unique angle: One year into Trump's term, markets are re-pricing "trade war 2.0" risks—some analysts call it a temporary correction, not a fundamental break, with potential quick rebound if rhetoric cools (Davos chatter ahead).
Stay vigilant—volatility could linger if escalations continue.
What’s your take on this trade war dip? Buying the fear, holding steady, or sitting out? Share your thoughts or questions below—thanks for reading, appreciate you staying informed in these turbulent times! 🚀
