The liquidation snowball-effect

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03 Feb 2025

The liquidation snowball-effect

CME traders remain defensive, while tariff-driven volatility forced offshore traders into de-risking via liquidations, pushing ETHBTC to 2020 lows.

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News traders rejoice

Last week it was DeepSeek, this week it is Trump’s tariffs. BTC dropped from ~$100,000 as low as $91,178 on Coinbase during a liquidation cascade, before ultimately recovering to close green at $101,460. ETH fell 24% over a two-hour period while ETHBTC hit 0.023 during the panic. U.S. labor data releases this week potentially offer more volatility, while MicroStrategy will release Q4 numbers. Further tariff headlines are expected as China retaliates and speculation grows surrounding EU tariffs.

CME traders maintain defensive positioning