Bitcoin faces liquidation of $ 1.3 billion

Bitcoin BTC $96,492.86 Bitcoin -1.79% Market capitalization $1.91 trillion VOL. 24 hours $2.08 billion is under the threat of large-scale liquidations worth more than $ 1.3 billion. Crypto analysts foresee such a scenario if the industry’s flagship falls below the key support level of $ 93,000. The fall was caused by new trade disputes between the United States and China, which exacerbated investor concerns.

Analysts warn that further declines could exacerbate the negative trend. In particular, Bitget expert Ryan Lee notes that a drop below $ 90,500 could trigger a bearish trend and cause additional asset sales. This can have significant consequences for traders with high levels of leverage, as forced liquidations increase market volatility.

Despite the short-term risks, some analysts see the situation as potentially beneficial for bitcoin in the long run. James Waugh, founder of DFG, believes that amid the general financial instability, the main cryptocurrency can strengthen its position as a hedge against the depreciation of fiat currencies. Global macroeconomic trends, such as inflationary pressures and weakening confidence in traditional financial instruments, may push investors to look for alternative assets.

The situation is complicated by the delay in the meeting between Donald Trump and Xi Jinping. The lack of clear signals about future trade relations between the world’s two largest economies is increasing uncertainty in financial markets. For bitcoin, this means increased volatility and possible sharp changes in the exchange rate depending on political decisions.