Bitcoin drops to $93,000: Double pressure from trading risks and derivatives liquidation

Source: BlockMedia Original Title: [New York Coin Market] BTC at Risk of Falling Below $93,000… Panic Selling Due to Trump Tariff Fears Original Link: https://www.blockmedia.co.kr/archives/1033894 Bitcoin’s single-session upward momentum has stalled, dropping again to the early level of $93,000. The market sentiment is driven by the spillover effects of global derivatives market liquidations combined with reports of the EU preparing retaliatory tariffs against the US, leading to collective weakness in major cryptocurrencies.

On the 19th (local time), Bitcoin traded at $93,033 on CoinMarketCap, down 2.39% from the previous day. It briefly rose to $95,377 during the session before facing strong selling pressure, quickly turning downward. Market capitalization shrank to $1.85 trillion (a 2.4% decline), with daily trading volume exceeding $40 billion, a surge of over 132% compared to the previous day.

Key Performance Indicators

The overall digital asset market cap decreased by 2.61% to $3.14 trillion, reflecting a general risk-averse market sentiment. Bitcoin dominance index slightly increased to 58.2%, while the greed and fear index remains at a neutral level of 45.

Altcoins’ Decline Widens

Ethereum(ETH) fell 3.82% to $3,216, partially retracing its 7-day cumulative gain (+3.21%); a leading exchange token(BNB) dropped 2.41% to $926; XRP declined 1.98% to $2.01. Solana(SOL) experienced the largest drop, down 6% to $134; Cardano(ADA) and Dogecoin(DOGE) fell 5.5% and 5.3%, respectively.

Among the top-ranked tokens, DeFi and Layer1 tokens saw the largest declines. SUI, APT, ETHFI, ENA, JUP, and others collectively fell about 10%, with significant capital outflows.

Factors Driving the Decline

The decline was accelerated after the EU announced preparations for €93 billion in retaliatory tariffs against the US. This news impacted global stock markets, reinforcing risk aversion toward digital assets, leading to a synchronized downturn in the crypto market.

In the past 24 hours, approximately $815 million in derivatives liquidations occurred, with Bitcoin-related liquidations reaching $231 million. Most were forced liquidations of leveraged long positions, increasing stop-loss orders among bullish investors and adding downward pressure.

According to CoinGlass data, Bitcoin open interest actually increased by 0.65%, while Ethereum remained stable. Altcoins like SOL and ADA saw open interest decrease by 8-13%, indicating a strengthening risk-avoidance sentiment.

Market Structure Analysis

Crypto analyst Godspower Owie stated: “Bitcoin is breaking out of weeks of volatility compression and entering a phase of structural volatility expansion, which suggests that intraday price swings and participant numbers will significantly increase in the future.”

An analyst from a DEX options market noted: “Open interest in options has surpassed that of futures for the first time, indicating a shift from leverage-driven speculation to a structure centered on hedging and market-making positions.”

Technical Outlook

Trader Lennaert Snyder believes: “Bitcoin continues to form a range within weekend liquidity, and unless it breaks above $95,820, a strong bullish position has not yet been established. The $94,635 level acts as a support point; if broken, the market may revert to a medium-term downtrend.”

Another trader, Alienopstrading, diagnosed: “Currently, short strategies are effective, with the $110,000–$120,000 range serving as a major resistance. The 60-day trading range is about to end, and after this cycle, the price may determine its direction.”