$BTC On February 3, 2025, the cryptocurrency market experienced a violent shock known as the "cryptocurrency massacre." The price of Bitcoin (BTC) fell below $100,000 at one point, hitting a low of $91,130, a single-day drop of 6.83%. Ethereum (ETH) plummeted 25%, hitting a near one-year low of $2,080.19. 

The sharp drop caused more than 700,000 people across the network to have their positions liquidated, with a total liquidation amount of up to US$2.21 billion, of which long positions reached US$1.87 billion and short positions reached US$340 million. 

Analysis of the main reasons:

1. US tariff policy: US President Trump announced a 25% tariff on imports from Canada and Mexico, and a 10% tariff on Chinese goods. The market is worried that this will intensify global trade tensions, push up inflation, and in turn affect the cryptocurrency market. 

2. Macroeconomic uncertainty: Global trade tensions have raised investors’ concerns about an economic recession, with funds withdrawing from risky assets and the cryptocurrency market taking a hit. 

Despite the wild market swings, experts advise investors to remain calm and avoid panic selling, stressing the importance of a long-term investment perspective.