Despite the Greenland panic, Bitcoin is flashing a rare bullish divergence | Credit: Veronica Cestari
* Trump’s Greenland tariff threat triggered a sharp crypto market sell-off.
* Bitcoin’s drop caused $870 million in liquidations, hitting longs hardest.
* On-chain data suggests consolidation, not long-term holder panic.
The total crypto market cap has fallen by 2.97% in the last 24 hours.
This happened as the Bitcoin (BTC) price plummeted from its weekend high of $95,500 to an intraday low of $91,935. According to CCN’s findings, President Trump’s trade demands regarding Greenland seemed to have triggered the decline.
The crash marks a sharp reversal from last week’s bullish momentum, leaving traders fearful of a deeper correction toward $80,000.
Here are all the reasons the crypto market is down and what lies ahead for Bitcoin’s (BTC) price.
The Greenland Tariff Triggers the Downtrend
The primary catalyst for today’s “risk-off” move was President Trump’s announcement of a 10% tariff on eight European allies — including the UK, Germany, France, and Denmark — starting Feb. 1.
* The Ultimatum: The tariff will jump to 25% on June 1 unless a deal is reached for the “complete and total purchase of Greenland.”
* Global Panic: The threat of a transatlantic trade war with NATO members rattled global risk appetite. While Bitcoin dropped by over 3.6%, Gold surged to a record high of $4,670, highlighting a clear divergence: “digital gold” failed to act as a safe haven during this specific political crisis.
$870 Million Liquidated
The speed of the price drop triggered a massive “liquidation cascade.” As Bitcoin’s price broke below the $93,000 support levels, it forced the automatic closure of thousands of leveraged “long” positions.
Within a single 60-minute window, over $514 million in long positions were liquidated. But that has gone worse.
According to Coinglass, crypto markets saw heavy forced selling over the past 24 hours, with total liquidations topping $870 million.
Long positions took the brunt of the damage. Roughly $787.5 million in longs were wiped out as prices fell sharply and leverage unwound.
In contrast, shorts suffered far more minor losses, with about $83.28 million liquidated.
This imbalance confirms a classic long squeeze. As prices broke key support levels, overleveraged bullish bets were forced to close, accelerating downside momentum and amplifying the broader market sell-off.
Notably, high-beta altcoins suffered even more than BTC. For instance, Solana’s (SOL) price plunged 8.6%, and Ethereum (ETH) dropped 4.9%, slipping below the critical $3,100 mark.
Bitcoin to Revive the Crypto Market Soon?
Amid this, the Bitcoin Coin Days Destroyed (CDD) has dropped.
When Bitcoin’s price falls while CDD also drops, it signals a shift toward consolidation.
While the recent selloff looks scary on the charts, the CDD decline is usually quite positive. It suggests long-term holders are not moving old coins, indicating that “smart money” is not dumping into the weakness.
This setup typically means recent buyers are driving most of the sell-off. Meanwhile, older wallets stay dormant. As a result, volatility might cool, and Bitcoin’s price might drift rather than free-fall.
That can make it easier for price to form a floor, even if a strong rally does not start immediately. Over time, this “boring” phase is where accumulation builds, setting the base for the next trend move.
BTC Price Analysis
Despite the pullback, the daily chart is starting to flash a bullish divergence for Bitcoin. As BTC slipped below the $93,735 support, the Chaikin Money Flow (CMF) jumped above the zero line.
That shift suggests capital is flowing back in even as the price weakens, which often signals dip-buying rather than pure capitulation.
Price action also supports the rebound case. Bitcoin’s price has not broken below the lower trendline of its earlier ascending channel, which implies sellers are struggling to force a full trend breakdown.
If BTC continues to defend that structure, the next upside test becomes clearer.
In that scenario, Bitcoin could retest the $98,255 resistance; however, follow-through matters.
Momentum indicators need to stay supportive for the move to extend. For now, the Moving Average Convergence Divergence (MACD) remains in positive territory, which suggests downside momentum is not accelerating.
If the CMF stays positive and MACD holds firm, the odds of an immediate second crash reduce. That would also ease pressure across the broader crypto market, especially if BTC stabilizes and volume returns on up-moves.
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