2026-01-20 00:26:39

Last night's worst-case scenario still played out as expected. The decline in the US stock market propagated downward, with Bitcoin repeatedly oscillating below $93,000, barely finding respite along the blue trend line.

At 7 a.m. this morning, US stock futures plunged along with a sharp drop in BTC. This crash was not an isolated event; it was driven by multiple factors including escalating trade tensions between Europe and the US, liquidity shortages, leveraged liquidations, and shifting macroeconomic expectations—typical risk asset flight-to-safety selling.

**Sudden Escalation of Trade Frictions**

Trump waved tariffs at eight European countries over Greenland issues, prompting the EU to swiftly initiate retaliatory measures involving approximately €93 billion worth of US goods. February 6th marks the deadline for the retaliation list’s grace period, sparking market concerns about a full-scale trade war.

Global risk appetite instantly cooled. Large sums of capital withdrew from growth stocks and cryptocurrencies, shifting into traditional safe havens like gold. Nasdaq futures fell over 1%, S&P 500 futures declined 0.8%, and Dow futures dropped 0.56%. BTC was also not spared, falling over 3%, with a low of $92,000. Over the past 24 hours, total network liquidations exceeded $650 million, with long positions accounting for as much as 88%.

**Liquidity Shortage Triggers Liquidation Cascade**

During Asian trading hours, liquidity in US stock futures and crypto markets was already thin, and large sell orders immediately triggered chain reactions of algorithmic trading and stop-loss orders. High-leverage BTC positions became a ticking time bomb—price drops triggered mass liquidations, amplifying the decline and causing a sharp flash crash.

**Macroeconomic Expectations Turn Sharply**

The Federal Reserve’s rate cut expectations are changing marginally. Major institutions like Barclays have downgraded their projections for the number and magnitude of rate cuts this year. US Treasury yields have risen accordingly, increasing valuation pressures on growth stocks and cryptocurrencies.

BTC-2,28%

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AirdropHustler

· 2h ago

Damn, once again the US stocks are dragging everything down, and the leverage brothers are about to get liquidated. Why is it always liquidity issues? The Asian trading session is really hell mode. Trump's hand is played so well that if a trade war starts, everything will fall. I just want to know when I can recover my losses. If this keeps going, who can hold up? Another 650 million liquidation, longs are really miserable. The rate cut expectation is gone, so what’s the point of playing now? Where’s the safe haven everyone talked about? Has gold risen, or is it also fleeing? Feels like nothing can be saved unless Trump suddenly changes his tone.

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FloorSweeper

· 01-20 00:56

tbh this is exactly when paper hands start crying. 88% of longs liquidated? that's when real accumulation happens, not capitulation. market psychology 101—everyone's running to gold while i'm quietly stacking the weakness. feb 6 deadline is just noise imo, traders always sell the rumor anyway. this move screams bottom signal to me, not bear case

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GovernancePretender

· 01-20 00:52

Here we go again, the nightmare moment for leverage traders. 88% long positions liquidated? Laughing out loud, this is the consequence of playing with high leverage. Once the trade war starts, no one wants risk assets. Gold has risen while we're still falling here, truly incredible. The part about liquidity drying up was spot on—large traders dumping, then machines selling frantically, small traders following suit and getting liquidated, a perfect storm. The Fed isn't cutting rates anymore? That's even worse, funds have all moved to the bond market. It should have fallen long ago, but now I feel a bit more psychologically comfortable.

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CryptoCrazyGF

· 01-20 00:43

Here we go again, leverage traders are probably getting wiped out this time. Greenland Island can even become a battlefield, truly incredible. The crypto world just has to go crazy. That $92,000 hit just woke me up from a dream, hilarious. $650 million liquidation? Brothers who got margin called are probably regretting their lives right now. Over 88% long, serves them right. Liquidity drying up is like this—clicking your mouse could mean losing everything, exciting. The most annoying thing at times like this is watching automated trading play its own game. We retail investors are just pawns. February 6th, right? The countdown is on. There might even be a second round. The good show is still to come. The Federal Reserve not cutting interest rates but instead tightening is really absurd. Who gave them the courage? Gold has risen, right? Someone always laughs last in times like these, but it’s not us. Hey, there are really many people entering the market to buy the dip now—life and death speed, everyone.

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NFT_Therapy

· 01-20 00:32

Leverage collapsing again, another bleak morning. 88% long liquidations, this is really outrageous. --- The Greenland tariff war triggered a sell-off, I really can't hold on anymore. --- $650 million in liquidations... When liquidity dries up, it's a slaughterhouse, extremely fragile. --- Trump is playing with fire again, US stocks plunge, crypto follows the decline, why is this always linked? --- Below 93,000 there’s no support, it feels like it will continue to slide down. --- Those with high leverage are all praying; the term "time bomb" is really fitting. --- Damn, the rate cut expectation has reversed again. Is this institution deliberately messing around? --- Thin liquidity during Asian hours led to liquidation, it’s a clear pattern. --- 930 billion euros in countermeasure list, this trade war is really escalating. --- Longs are concentrated in liquidations, indicating everyone is on the same boat, risk is too centralized.

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AlgoAlchemist

· 01-20 00:31

It's the same old trick, leverage traders are about to pay their tuition again. Playing with high leverage, it was bound to explode. Even Greenland can be used as a reason, truly incredible. Damn, it's another liquidity trap, most vulnerable during the Asian session. No more rate cuts, valuation pressures are rising, can Bitcoin still go up? This time is different, macro has really turned. 6.5 billion in liquidation, 88% long positions, hilarious, retail investors are the ones taking the hit. Once a trade war starts, all assets are given away for free. If 92k can't hold, there's no support below. Waiting until February 6th, something really might happen.

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