Bitcoin drops below $93,000, trade war concerns trigger $865 million in crypto market liquidations

January 19 News, affected by escalating trade tensions between the US and Europe, Bitcoin experienced a rapid decline during Monday’s Asian trading session, with the price dropping to around $92,415 at one point, a daily decline of over 3%, triggering a large-scale margin call. Market data shows that this round of decline triggered approximately $865 million in forced liquidations, reflecting previously concentrated long positions and high leverage levels.

According to CoinGecko data, Bitcoin’s price quickly retreated from a high of $95,385, with about 90% of the liquidations coming from long positions betting on a continued upward trend. As Bitcoin weakened, mainstream cryptocurrencies like Ethereum also declined in tandem, leading to a roughly 2.8% decrease in the total cryptocurrency market cap within 24 hours, down to $3.26 trillion. Since last week, the total market value of cryptocurrencies has evaporated by over $111 billion.

This market movement occurred during the US stock and bond markets’ closure for Martin Luther King Jr. Day, resulting in relatively low global market liquidity. Meanwhile, world political and business leaders are gathering at the World Economic Forum annual meeting, where macroeconomic and geopolitical issues are the focus of market attention. Several analysts pointed out that crypto assets are reacting sensitively to the renewed escalation of US-EU trade frictions.

Fisher8 Capital analyst Lai Yuen stated that the market is highly alert to recent tough statements from Trump regarding tariffs and European allies, and the uncertainty in trade policy has increased volatility in risk assets. These comments not only impact traditional financial markets but also amplify short-term selling pressure in the crypto market.

Other analysts believe that this round of correction is not primarily due to a significant deterioration in Bitcoin’s on-chain fundamentals, but more a result of macro risk sentiment shifts and profit-taking after previous gains. Ryan Lee noted that amid rising global uncertainty, capital tends to adopt a defensive stance, making it difficult for digital assets to remain unaffected.

Looking ahead, market views suggest that Bitcoin may remain volatile in the short term, with key support around the middle of the $80,000 range. The subsequent trend will still depend on macro policy directions, geopolitical developments, and the extent of market risk appetite recovery.