Today market analysis on behalf of Ramy Zeytouni market analyst at Ramy Zeytouni llc
Bitcoin recorded a decline on Monday that saw prices fall from around USD 95,400 to near USD 92,000 before stabilizing, but sentiment remains fragile following a broad deterioration in global risk appetite.
The abrupt move lower was driven by renewed trade tensions after Donald Trump threatened to impose 10% tariffs on several European countries from February 1, citing escalating tensions linked to Greenland. Trump also warned that tariffs could rise to 25% by June if no progress is made, reviving concerns over a wider trade confrontation.
Data underlined the intensity of the move. Over the past 24 hours, liquidations were heavily skewed to long positions, with roughly USD 787 million wiped out versus just USD 86 million in shorts, suggesting that price action remains vulnerable to further losses as markets digest the geopolitical shock.
Despite the sharp price drop, institutional demand held up last week. Spot Bitcoin ETFs recorded net inflows of more than USD 1.4 billion, their strongest weekly intake in several weeks, although they recorded USD 394 million in outflows on Friday. Ethereum products attracted nearly USD 480 million.