Asia Market Open: Bitcoin Dips to $88K, Gold Hits Record High Amid Fresh Trade Concerns

Bitcoin has experienced a significant drop, falling 4% to around $88,000, amidst a broad market downturn and rising risk aversion. In contrast, gold has reached an all-time high, reflecting investor shifts towards safer assets. Both Bitcoin and Ether saw major liquidations, contributing to a volatile market environment characterized by uncertainties surrounding international trade.

Key Takeaways

Bitcoin fell to approximately $88,000, marking a 4% decrease due to widespread liquidation in the crypto markets.
Gold surpassed $4,800 per ounce for the first time, with silver also reaching new highs.
A total of $1.07 billion was liquidated in the last 24 hours, predominantly from long positions in Bitcoin and Ether.
Asian and European equity markets are experiencing declines amid ongoing trade tension, particularly from U.S. tariff policies.
Historical trends suggest that Bitcoin often performs well in February, though current market conditions may dampen expectations.

Bitcoin

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Bitcoin dropped 4% to about $88,000 on Wednesday as a swift leveraging unwind swept through crypto markets, adding additional strain to a week already marked by widespread risk aversion across stocks, bonds, and currencies.

Spot gold soared past $4,800 an ounce for the first time, and silver also achieved record highs as investors continued to favor safe-haven assets during a broad “Sell America” trend that pressured the U.S. dollar.

According to liquidation data from CoinGlass, 181,570 traders were affected over the last 24 hours, raising total liquidations to $1.07 billion. Long positions faced the brunt of the damage, with $998.33 million liquidated compared to $71.39 million in short positions.

Market Snapshot

Bitcoin: $88,942, down 4%
Ether: $2,963, down 7.1%
XRP: $1.90, down 3.8%
Total crypto market cap: $3.09 trillion, down 3.9%

Bitcoin and Ether Lead Liquidations as Stocks Remain Under Pressure

Bitcoin and Ether made up the majority of the forced selling. Data shows that liquidations reached $440.19 million for Bitcoin and $392.38 million for Ether, while other cryptocurrencies collectively accounted for about $52.60 million.

The negative risk sentiment also affected Asian equities, which extended losses into a third consecutive session. The MSCI’s Asia-Pacific index excluding Japan fell 0.3% in early trading, and Japan’s Nikkei dropped 1.2%, marking a fifth straight decline.

Europe's markets appeared weak as well, with Euro Stoxx 50 futures and DAX futures both down 0.4%. Traders are currently assessing the latest developments regarding tariffs and their potential impacts on global economic growth.

Wall Street Faces Increased Losses as Trump Reiterates Greenland Position

In the U.S., markets experienced a significant decline, with Wall Street dropping more than 2% overnight. The S&P 500 fell by 2.06%, while the Nasdaq Composite sank by 2.4%. Nevertheless, Nasdaq and S&P 500 futures steadied somewhat, recovering around 0.2% in early trading.

This ongoing push for safety has continued to lift gold prices. Trade tensions remain central to the narrative as President Donald Trump reiterated his firm stance on Greenland, emphasizing that there will be “no going back” on his ambition to control the territory. His tariff threats against Europe have reignited concerns of a broader trade war.

European policymakers are gearing up to respond, with the European Union set to convene an emergency summit in Brussels on Thursday. Leaders are contemplating options that may include imposing tariffs worth about 93 billion euros ($109 billion) on imports from the U.S.

Robin Singh, CEO of Koinly, noted that February typically sees favorable Bitcoin performance, averaging double-digit gains over the last decade. “However, underperformance would not be surprising, and it’s not inherently negative,” he added.