$BTC Faces Sharp Drop as Long Liquidations Hit $195M After Tariff News
Bitcoin price took a strong hit recently, falling by nearly 4 percent to around $113K. This drop came after fresh news about tariffs from Donald Trump caused panic in the markets. As a result, long traders were caught off guard, leading to massive losses. In total, over $195 million worth of long positions were liquidated across all major exchanges.
The chart from CryptoQuant shows this clearly. On the same day as the price fall, long liquidations (green bars) spiked heavily. Before the drop, the price had been moving sideways with mild ups and downs. But once the news broke out, selling pressure increased quickly, pushing prices lower and triggering a long squeeze.
This drop is important because such high liquidation levels often lead to quick market reactions. Many traders who borrowed funds to bet on the price going up were forced to sell when prices moved the other way. This caused a chain reaction, leading to even more sell-offs and more liquidations.
At its lowest point, Bitcoin hit $113K before showing a small recovery toward $115K. Still, the pressure remains high, and traders are likely to stay cautious. If similar news continues to come out, we may see more liquidations and further downside risk.
For now, it’s a waiting game. The market needs to find some stability. Traders should watch news closely and manage risk smartly to avoid getting trapped in sudden moves like this one.
