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Bitcoin Risks $1.3B Liquidation as Trade War Fears on the Horizon
The ongoing trade war between the United States and China has brought a new wave of uncertainty to the cryptocurrency market, particularly Bitcoin (BTC). As tensions escalate, the world’s largest cryptocurrency is at risk of liquidating more than $1.3 billion if it drops below its critical support level of $93,000.
Currently trading at $95,960, Bitcoin has taken a sharp dive after new import tariffs were imposed by both nations, rattling market sentiment and causing the price to slip below the crucial $100,000 mark. Analysts from reputable institutions are sounding alarm bells, warning that if Bitcoin falls under $90,500, it could trigger bearish trends in the short term.
According to Bitget’s Ryan Lee, a prominent analyst, “The recent trade tensions between the US and China have brought significant uncertainty to the market, which may result in a sharp correction. If we see a price drop below $90,500, I would expect Bitcoin to face significant selling pressure.”
On the other hand, James Wo from DFG is taking a more long-term view of the situation. While acknowledging the short-term risks, he believes that Bitcoin could actually benefit as a hedge against fiat devaluation in the long term. “The ongoing trade war and escalating tensions between nations may lead to increased uncertainty and a subsequent flight towards safe-haven assets like Bitcoin,” Wo explained.
As the world waits with bated breath for the delayed meeting between US President Trump and Chinese President Xi Jinping, the near-term price trajectory of Bitcoin remains highly uncertain. The outcome of this meeting will undoubtedly have significant implications on global markets, including cryptocurrency exchanges.
It is essential for investors to be aware of these risks and take necessary measures to protect their investments in this volatile market.
