Bitcoin drops below $93K
Bitcoin (CRYPTO:BTC) experienced a significant decline, crashing to $92,111 on February 3, 2025, marking an 8.5% drop in just 24 hours and triggering $1.23 billion in liquidations across crypto derivatives markets.
This downturn followed a peak of $101,361 over the weekend, which was quickly erased as bearish sentiment took hold in the market.
According to data from Coinglass, the liquidation event included approximately $222 million in long positions for Bitcoin and $221 million for Ethereum (CRYPTO:ETH), highlighting the extent of the market's reaction.
As Bitcoin breached key support levels, forced liquidations accelerated, leading to a broader sell-off in the crypto space.
Ethereum also faced a steep decline, dropping 11.3% amid rising uncertainty surrounding newly imposed tariffs by the Trump administration.
The recent drop represents Bitcoin's most severe single-day decline in weeks and reflects a broader trend affecting risk-on assets like equities and commodities.
Market participants are grappling with profit-taking after a prolonged rally above $100,000 and a slowdown in inflows into exchange-traded funds (ETFs).
The liquidations have raised concerns about further losses as traders navigate a volatile market environment.
With thin liquidity over the weekend exacerbating price fluctuations, many investors remain cautious about potential turbulence ahead.
The ongoing economic uncertainty has prompted some analysts to interpret the pullback as a temporary correction rather than a long-term trend.
As traders monitor critical support levels, including around $90,360, they are advised to remain vigilant of market dynamics that could influence future price movements.
At the time of reporting, the Bitcoin (BTC) price was $93,891.71.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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