Crypto Assets market suffers heavy losses, Bitcoin plunges significantly

On February 3, the Crypto Assets market suffered a heavy blow, with Bitcoin prices plummeting by 7% to $93,768.66. This crash is considered a safe-haven response to the announcement by the U.S. President of a new round of import tariffs on Canada, Mexico, and China.

Market data shows that the index measuring the top 20 digital assets by market capitalization has dropped by 19%. Ethereum has plummeted by 25%, reaching its lowest level since last November. The scale of this crash exceeds that of the "312 incident" on March 12, 2020, which caused over 100,000 liquidations.

According to data platform statistics, the total liquidation amount across the entire network in the past 24 hours reached $2.119 billion, with long positions liquidated amounting to $1.78 billion and short positions liquidated at $270 million. A total of 718,513 people globally encountered liquidations, with the largest single liquidation order valued at $25.635 million.

Analysts have pointed out that Bitcoin, as a speculative asset, reacts more violently to macroeconomic news. The tariff policy announced by the United States has not only affected the Crypto Assets market but also led to a significant decline in the U.S. stock market futures. The S&P futures opened down 117 points, a decrease of 1.9%; the Nasdaq 100 index futures opened down 600 points, a decrease of 2.95%.

However, some industry experts believe that in the long run, the ongoing tariff war may be beneficial for Bitcoin. They analyze that the U.S. government may attempt to adjust the global position of the dollar through tariffs and other means, with the ultimate goal of achieving a dual decline in both the dollar and interest rates. In this context, Bitcoin may become a safe haven for investors.

Experts also point out that unlike the 1970s, we are now in a highly interconnected digital age. The imbalances in the global economy may drive more people to seek Bitcoin as an alternative, which could lead to faster and higher growth in Bitcoin prices in the future.

Nevertheless, the current market is still filled with uncertainty. Investors regard $90,000 as a key support level for Bitcoin, and if it falls below this level, it could further retrace to $80,000. Currently, Bitcoin has dropped about 16% from the historical high of $109,350.72 set on January 20.

It is worth noting that experienced crypto assets investors are accustomed to a pullback of about 30% during bull markets. Market participants are closely monitoring developments, assessing whether this decline is just a short-term fluctuation or indicates a longer-term market adjustment.