Bitcoin slides on trade war fears as liquidations hit $865M

Bitcoin fell sharply on Monday as renewed US-EU trade tensions triggered a broad risk-off move across global markets.

The price of Bitcoin dropped 3.1% from $95,385 to $92,415, according to market data.

The decline wiped out bullish positions that had anticipated a continuation of last week’s upward momentum.

More than $865 million in leveraged crypto positions were liquidated during the early Asian trading session.

Analysts said roughly 90% of liquidations came from traders betting on higher prices.

Market observers noted that the sell-off was driven by global macroeconomic concerns rather than crypto-specific issues.

US stock and bond markets remained closed for the Martin Luther King Jr. public holiday, reducing overall liquidity.

The downturn coincided with world leaders gathering in Davos for the World Economic Forum.

Altcoins also recorded sharp losses, dragging the total crypto market capitalisation down by 2.8% to $3.26 trillion.

The wider crypto market has shed more than $111 billion in value since last Thursday.

Analysts linked the sell-off to escalating geopolitical tensions between the United States and the European Union.