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

According to the latest market analysis from Wintermute, driven by sustained ETF fund inflows 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 phase 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 that 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 inflows into 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 inflation data, with the US core CPI year-on-year increase dropping to 2.6%, the lowest since March 2021. Third, the catch-up trading logic of Bitcoin relative to hard assets like gold gradually materializing.

Despite the large-scale liquidations accompanying the pullback, the report notes that market leverage was cleared out within a short timeframe, without triggering chain-reaction selling or a liquidity crisis. Overall, it resembles a healthy technical adjustment rather than a trend reversal.

Looking ahead this week, investors will focus on the Davos World Economic Forum, 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 tariff-related remarks will materialize further. Based on current pricing, the market appears to view this more as a phase of "political noise" rather than a systemic risk.