Bitcoin's Digital Gold Test Fails as Tariff Threats Spark $790M Liquidations

Bitcoin's 'digital gold' narrative cracked under geopolitical pressure as $790 million in leveraged positions imploded during Trump's tariff ultimatum to Europe. The cryptocurrency fell below $93,000 during Asian trading hours amid escalating U.S.-EU tariff threats, while gold and silver hit all-time highs as markets priced in structural trade fragmentation risks.

CoinGlass data revealed $790 million in BTC long liquidations over 24 hours, exposing fragile leverage in the crypto market.

Vincent Liu, CIO of Kronos Research, noted that geopolitical headlines "slammed into an already fragile crypto market." Tiger Research reported equilibrium metrics (MVRV-Z: 1.25, NUPL: 0.39, aSOPR: 1.00), while Matrixport observed BTC/ETH volatility compression of 18-25 points since mid-November.

The EU's Anti-Coercion Instrument (ACI) threatens $108 billion in U.S. trade retaliation, with 10% tariffs on EU nations set for February 1 and potential escalation to 25% by June.

Tiger Research maintains a $185,500 BTC price target for Q1 2024, though Initial Jobless Claims on January 22 will serve as a key macro event for BTC volatility.

Look, the ACI's potential to reprice long-term BTC positioning isn't just theoretical—it's a live stress test for crypto's risk-off mechanics. If the market can't absorb $790 million in liquidations without triggering deeper cascades, the 'digital gold' narrative might need a more robust vault.

⚠️ LEGAL DISCLAIMER: This article is for informational purposes only and does not constitute financial or investment advice.