Bitcoin falls sharply, over 700,000 people Get Liquidated, surpassing the "3.12" incident

On February 3rd, the cryptocurrency market experienced a significant risk-averse trend. According to data platforms, Bitcoin plummeted by 7% to $93,768.66. An index measuring the market capitalization of the top 20 digital assets fell by 19%. Ethereum plummeted by 25%, reaching its lowest level since November.

Data shows that in the past 24 hours, the total liquidation across the network was 2.119 billion USD, with long positions liquidated at 1.78 billion USD and short positions liquidated at 270 million USD. A total of 718,513 people were liquidated globally. The largest single liquidation occurred on a certain trading platform, worth 25.635 million USD.

The scale of this crash exceeded the "3.12" event on March 12, 2020. At that time, within just 24 hours, more than 100,000 people across the network were Get Liquidated, with the largest single liquidation order valued at approximately $58.32 million and a total liquidation amount of $2.93 billion across the network.

The recent fall is related to US President Trump announcing the implementation of import tariffs on Canada, Mexico, and China. Trump signed an order imposing a 25% tariff on imports from Mexico and Canada, and a 10% tariff on China, which will take effect on Tuesday. The trade volume between the US and these three countries is approximately $1.6 trillion.

The founder of a research company stated that Bitcoin, as a speculative asset, reacts strongly to such news. The S&P futures opened down 117 points, a decline of 1.9%. Last Monday, news from an AI company also caused the S&P index to drop by 100 points, a decline of 1.5%.

Jeff Park, the strategy director of an asset management company, believes that in the long run, the ongoing trade war may be "amazing" for Bitcoin. He analyzed the Triffin Dilemma and Trump's personal goals, arguing that tariffs might just be a temporary measure, and ultimately, Bitcoin will not only rise but do so at an even faster pace.

Jeff Park pointed out that the U.S. is trying to reach a multilateral agreement to weaken the dollar through tariff negotiations, similar to "Plaza Accord 2.0". He believes that the U.S. goal is to lower the dollar and yields, which will cause the prices of U.S. risk assets to soar. In this context, Bitcoin may become the best asset to hold.

Currently, investors view $90,000 as a key support level for Bitcoin. If it falls significantly below this level, the price may further retrace to $80,000. Bitcoin's current price has dropped about 16% from its historical high of $109,350.72 set on January 20. Experienced cryptocurrency investors are accustomed to retracements of around 30% during bull markets.