Holiday Liquidity and Trade Jitters Knock Bitcoin to $92.4K, Triggering $865M in Long Liquidations

Bitcoin’s overnight fade wasn’t a crypto story first—it was a liquidity story with a macro spark. In early Monday Asian hours, with U.S. cash markets shut for the Martin Luther King Jr. holiday and policymakers converging on Davos, BTC slipped from $95,385 to $92,415 (−3.1%), flushing $865 million in leverage. Approximately 90% of the wipeout hit longs positioned for a continuation of last week’s climb. Altcoins were dragged lower, pushing total crypto market value down 2.8% to $3.26 trillion over 24 hours. Since last Thursday, more than $111 billion has been shaved off the asset class.

What actually moved price was the combination that often matters most: a headline and a vacuum. Renewed U.S.-EU trade tensions—centered on Washington’s posture toward Greenland—arrived into thin books, amplifying the tape. Over the weekend, President Donald Trump said eight countries could face 10% export tariffs for opposing U.S. control of the island. Treasury Secretary Scott Bessent reinforced the stance, arguing the Arctic contest is real, Europe can’t reliably secure itself, and incorporating Greenland would benefit America. That backdrop tilted cross-asset risk appetite, and crypto joined equities and commodities in a more cautious posture.

Prediction markets captured the shift in narrative risk. On Myriad Markets, a DASTAN-owned platform, participants now ascribe a 54.5% chance that Trump will formally offer to acquire Greenland before July—up from 34.7% on January 17, a 57% jump in two days. Whether or not traders believe the outcome is feasible, rising odds change how they size risk in the near term.

The key point for Bitcoin is how leverage behaves when the largest liquidity pool is offline. During U.S. holidays, perps and basis markets tend to become more brittle: fewer resting bids, more concentrated open interest, and aggressive liquidation engines that can cascade through price levels. Today’s move looks like a classic leverage reset rather than a deterioration in crypto-native fundamentals. That’s consistent with analyst read-throughs that the selloff stems from a broader shift in risk appetite, not something structural within Bitcoin.

Near-term, a rangebound regime appears likely. Market participants expect BTC to consolidate through the back half of January, with support emerging in the mid-$80,000s. That zone isn’t mystical; it’s where prior forced sellers cleared, options dealers often reduce short gamma exposure, and spot buyers historically re-engage after wipeouts. If funding normalizes and open interest stays right-sized, the path of least resistance becomes chop rather than trend until a fresh catalyst arrives.

What I’m watching: - Liquidity density during the U.S. reopen: does spot depth refill or do we get a second flush? - Funding and basis: sustained resets would confirm deleveraging is mostly complete. - Headline velocity: tariff rhetoric and Davos soundbites can skew risk appetite quickly.

In other words, crypto didn’t suddenly change. The context did. A macro scare hit a thin tape and squeezed a crowded side of the boat. Until the policy signal clarifies—or positioning cleans up further—Bitcoin likely oscillates, with dip interest building closer to the mid-$80Ks rather than chasing strength at the highs.