Bitcoin experienced a notable decline of 4%, dropping to approximately $88,000, amidst a pronounced backlash against leveraged trading across cryptocurrency markets. This downturn comes against the backdrop of increasing risk aversion that has also affected stocks, bonds, and various currencies throughout the week. In contrast, traditional safe-haven assets surged, with spot gold surpassing $4,800 per ounce for the first time, and silver reaching record highs as investors sought refuge from increasing market volatility, leading to a broader “Sell America” sentiment that pressured the U.S. dollar.
Data from CoinGlass highlighted the severity of the situation, revealing that 181,570 traders were liquidated in just 24 hours, resulting in total liquidations amounting to a staggering $1.07 billion. Among these, long positions bore the brunt, with approximately $998.33 million liquidated, compared to $71.39 million in short positions.
When it comes to liquidations, Bitcoin and Ether were significantly impacted. The figures indicated that Bitcoin liquidations reached $440.19 million, while Ether accounted for $392.38 million. In total, other cryptocurrencies were responsible for liquidating about $52.60 million.
The adverse sentiment also seeped into Asian equity markets, marking a continued downturn for a third consecutive session. The MSCI’s Asia-Pacific index, excluding Japan, witnessed a fall of 0.3% during early trading, while Japan’s Nikkei index declined by 1.2%, marking its fifth straight day of losses. European markets also displayed softness, with Euro Stoxx 50 futures and DAX futures both sliding by 0.4%. Traders remained on high alert as they assessed the impending timeline for tariffs and their potential implications for global economic growth.
In the United States, Wall Street faced its most significant losses in the previous session, with major indices plummeting over 2%. The S&P 500 experienced a decrease of 2.06%, while the Nasdaq Composite fell by 2.4%. Nonetheless, futures for both the Nasdaq and S&P 500 showed some signs of stabilization with a rise of around 0.2% in early trading.
Sustained interest in safe-haven assets propelled precious metals higher, with ongoing trade tensions front and center. President Donald Trump reiterated his firm stance on acquiring Greenland, emphasizing that there was “no going back” from his objective, and his renewed tariff threats against Europe heightened apprehensions of a potential trade war. In response, European policymakers are gearing up for an emergency summit in Brussels, contemplating tariffs on U.S. imports that could total around 93 billion euros (approximately $109 billion).
Koinly CEO Robin Singh remarked on the historical performance of Bitcoin, noting that February has traditionally been a positive month for the digital currency, averaging double-digit gains over the past decade. However, he acknowledged that underperformance this month would not be entirely unexpected and shouldn’t necessarily be viewed negatively.
