Bitcoin’s price dropped below $100,000 due to concerns over the US-China trade war, which has created uncertainty in the market. The US announced new tariffs on Chinese imports, pushing Bitcoin’s price down and sparking fears of a large liquidation event.
Analysts warn that if Bitcoin fails to hold its key support level at $93,000, it could trigger massive liquidations worth up to $1.3 billion. However, some believe the drop could be temporary, given Bitcoin’s history as a hedge against traditional finance volatility.
While the trade tensions may drive immediate downward pressure on Bitcoin, analysts say they could also lead to increased demand for the cryptocurrency in the long term. A weakened dollar due to trade disputes might push investors toward Bitcoin, which was designed to serve as a store of value and alternative to fiat currencies.
The Crypto Fear & Greed Index has dropped to a “Fear” score of 46, reflecting the bearish mood in the market. Retail investors are becoming increasingly cautious, while professional investors remain optimistic about Bitcoin’s potential for a rebound.
As the market waits for President Trump’s meeting with Chinese President Xi Jinping on Feb. 11, Bitcoin’s price remains volatile. At $96,081, it faces a challenging road ahead due to global economic factors and trade tensions weighing on its short-term outlook.
Source: https://finance.yahoo.com/news/bitcoin-faces-1-3b-liquidation-074635073.html