Bitcoin lost ground around $95,000 amid profit-taking and reduced appetite for risk.
The recent market correction followed high selling pressure in top tokens like Solana, Cardano, and Dogecoin, which dropped by up to 9% over the last day.
A total of 203,722 traders were liquidated, with total liquidations amounting to $633.68 million.
The largest single liquidation order happened on Binance—BTC/USDT—valued at $4.67 million.
The pioneer crypto asset fell further from the psychologically significant $100,000 milestone on Tuesday.
The biggest cryptocurrency in the world by market capitalization was down 4% at $92,446.38 on Binance. BTC continued to lose ground, falling below $93,000 on Tuesday after a nearly 5% drop the day before.
According to CryptoQuant data, the recent decline is the result of leverage overheating and holders booking profits in Bitcoin. This has led to $150 million in Bitcoin liquidations over the past day, along with $435 million in spot BTC Exchange-Traded Fund (ETF) outflows on Monday. Given the bearish divergence in the Relative Strength Index (RSI), the technical outlook further supports the price correction.
Profits made on coins held for longer than an hour but shorter than 155 days are measured by the Short-Term Spent Output Profit Ratio (SOPR) indicator.
Historically, it has been observed that during bullish trends, the metric tends to reach about 1.02 before profit-taking takes place when a 30-day moving average is applied to the Short-Term SOPR. Bitcoin’s price has retreated or corrected each time this level has been reached.
Though the short-term goal of $100,000 per Bitcoin is still in place, analysts consider a correction of up to 10% from the peak—or as low as $92,000—to be natural.
Trump’s Tariff Threat Shakes Risk Sentiment
Trump announced he would impose 25% tariffs on Canada and Mexico and 10% on China to combat illegal immigration and drug entry into the U.S. His remarks raised concerns about a potential new trade war between the world’s largest economies, which could harm economic growth. Following Trump’s threat, major risk markets pulled back, while the dollar surged and came within striking distance of a two-year high set last week.
The President-elect also promised to levy high tariffs on China and other significant U.S. trading partners, which could have an adverse effect on risk assets and global growth in the coming years.
Trump’s Cryptocurrency Policies Under Fire
The crypto industry is anticipating further clarification about the implications of Trump’s policies on the sector. Trump promised to turn America into the global center for cryptocurrency during his campaign, and his nominees for the positions of Commerce Secretary and Treasury Secretary are supportive of cryptocurrency.
However, markets are awaiting tangible policies when Trump assumes office in January. Bitcoin’s weakness has affected other cryptocurrencies and related assets.
MicroStrategy Incorporated, the largest corporate buyer of Bitcoin, saw a drop from its all-time highs. The company purchased more than $5 billion worth of Bitcoin last week.