Analysis: Tariff Remarks Trigger $850 Million in Long Liquidations, Bitcoin's $90,000 Level Becomes Key Defense

According to the latest market analysis from Wintermute, driven by the continued inflow of ETF funds and marginally cooling inflation data, Bitcoin recently successfully broke through the key resistance level of $95,000, briefly testing near $98,000 to reach a new cyclical high. However, market sentiment shifted abruptly on Monday. Trump's announcement of imposing additional tariffs on certain European countries triggered collective pressure on risk assets, leading to a rapid pullback in Bitcoin.

Data shows this news triggered approximately $850 million in passive liquidations of long positions, causing the BTC price to retreat to around the $92,000 level within a short period. Wintermute believes the previous rally was primarily driven by three major factors: First, a significant return of capital to spot ETFs, with a single-day net inflow of $760 million last Tuesday and a cumulative weekly inflow of approximately $1.4 billion. Second, positive signals from inflation data, as the US core CPI year-over-year increase fell to 2.6%, the lowest since March 2021. Third, the catch-up trading logic of Bitcoin relative to hard assets like gold is gradually materializing.

Although the pullback was accompanied by large-scale liquidations, the report points out that market leverage was cleared out quickly, with no cascading sell-offs or liquidity crisis occurring. Overall, it resembles a healthy technical adjustment rather than a trend reversal.

Looking ahead this week, investors will focus on the World Economic Forum in Davos, the EU emergency summit, and the core PCE inflation data to be released on Friday. Wintermute believes that as long as the Bitcoin price can firmly hold above $90,000 and ETF fund flows remain positive, the upward structure remains sustainable. If this support level is breached, a return to the range-bound volatility seen since last November cannot be ruled out.

Overall, the report concludes that the current market's buying foundation remains solid. Short-term uncertainty mainly stems from whether the tariff-related remarks will be further implemented. Based on current pricing, the market is more inclined to view this as a temporary "political noise" rather than a systemic risk.