Bitcoin Dips to One-Month Low Amid Trade Tariffs
Bitcoin experienced a significant drop during Asian trading hours, reaching a one-month low of $92,000 due to President Donald Trump’s aggressive trade tariffs. This decline led to one of the largest liquidation events in the past year.
Red Market Scenario
The downturn for Bitcoin began on Jan. 31, with the price slipping from over $105,000 to $102,000 within a few hours. This downward trend continued over the weekend, pushing BTC below $100,000 and dragging the entire market down with it.
– Ethereum fell nearly 20%, finding support just above the $2,500 mark.
– Solana dropped 10% to $195.
– XRP declined 17% to $2.3.
– Other major assets like Dogecoin and Cardano lost around 20% each.
These price movements effectively erased the gains these assets had made during the post-Trump election victory rally in December 2024.
Market Impact of Trump Tariffs
President Donald Trump’s newly imposed tariffs on major trading partners such as Mexico, Canada, and China triggered a broad market sell-off. The market rut spread across various asset classes, leading to equities sinking, gold dipping, oil spiking, and cryptocurrencies selling off violently.
On Feb. 1, President Trump introduced a 25% duty on imports from Canada and Mexico, along with a 10% tariff on Chinese products. The administration claims these tariffs aim to address issues related to illegal immigration and drug trafficking.
Liquidation Galore
The sharp downturn in the crypto market resulted in widespread liquidations, wiping out over $2 billion and impacting more than 742,000 traders. According to CoinGlass data:
– Traders with long positions collectively lost around $1.88 billion.
– Traders holding short positions faced losses of about $379 million.
Ethereum traders suffered the most, with total liquidations amounting to $611 million, primarily from long positions. Bitcoin followed closely, with $411 million in liquidations, including $340 million from long bets. Traders betting on other assets also lost $439 million during this period.
The largest single liquidation occurred on Binance, where a $25 million Ethereum trade was completely wiped out.