Bitcoin Crashes Toward $90K Amid Trade War Escalation and $860M Liquidations

Source: CryptoTicker Original Title: CRYPTO CRASH: Bitcoin Slips Toward $90K as Trade War Fears Ignite Global Sell-Off Original Link: The cryptocurrency market is experiencing significant volatility today as a combination of geopolitical tensions and technical failures have wiped hundreds of billions from total market capitalization. Bitcoin, the industry bellwether, has plummeted toward the critical $90,000 support level, dragging the broader altcoin market into a deep correction.

Investors who once eyed a $120,000 breakout are now grappling with sudden market weakness as the global macro environment shifts.

Market Snapshot

As of this morning, major assets are seeing significant declines:

Why Cryptos Are Crashing: 3 Key Drivers

1. Trade War Escalation

The primary catalyst is a sudden escalation in international tensions. The administration has threatened 10% to 25% tariffs on eight nations including major European economies, linked to a diplomatic dispute over Greenland. The threat of a full-scale trade war has triggered a massive “risk-off” move, with investors fleeing speculative assets like crypto in favor of traditional safe havens. While Bitcoin fell, gold prices surged to a new record of $4,670.

2. $860 Million in Forced Liquidations

The price drop was accelerated by a massive “long squeeze.” As Bitcoin broke below $95,000, automated sell orders were triggered. Market data indicates that over $860 million in leveraged long positions were wiped out in the last 48 hours. This was compounded by a major technical glitch on a major exchange, where a pricing error briefly showed Bitcoin at $0, triggering a wave of accidental liquidations and forcing a rare blockchain rollback.

3. Regulatory Stalemate & Production Costs

Confidence took a hit after regulatory delays on key digital asset legislation. Furthermore, analysts recently noted that Bitcoin’s production cost has risen to approximately $94,000. With the market price slipping below this “floor,” miners are facing increased pressure, leading to fears of further institutional sell-offs.

What’s Next?

Analysts are now watching the $88,000–$90,000 range. If Bitcoin fails to hold this psychological floor, the next major support level sits at $85,000. However, some institutional investors remain undeterred; MicroStrategy reportedly capitalized on the dip, purchasing another 22,305 BTC for $2.1 billion, bringing their total holdings over 700,000 BTC.