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Global markets lost ground on Wednesday as risk aversion spread unevenly across asset classes, pulling Bitcoin lower and weighing on stocks while investors moved steadily toward traditional havens.
Bitcoin fell about 4% to roughly $88,000. The decrease occurred at the same time as massive liquidations affecting the crypto market, which was a part of the global pullback in stocks, currencies, and bonds.
The trading landscape was delicate due to uncertainty regarding tariffs, which was influencing the market players' positions. In the Asian stock markets, notably the Japanese ones, a third consecutive day of declines was registered. The opening of European markets was on the downside, thus prolonging the already established cautious mood earlier in the day.
Stress in crypto markets intensified after a sharp leverage unwind triggered widespread forced selling. Liquidation data showed pressure building over a short period, adding to the volatility already present this week.
In the past 24 hours, 181,570 traders were liquidated, according to CoinGlass, with the total reaching $1.07 billion. Long positions accounted for most of the damage, with $998.33 million wiped out, compared with $71.39 million in short liquidations.
Bitcoin and Ether dominated the sell-off. Bitcoin liquidations totaled $440.19 million, while Ether saw $392.38 million. Other tokens together recorded about $52.60 million in losses, reflecting more limited exposure outside the two largest assets.
A long-term Bitcoin/USDT chart shared on X by analyst Lofty drew attention as prices slid. The chart compares Bitcoin’s 2021 cycle with the current market structure extending into projected 2026 levels.
In 2021, Bitcoin formed two major peaks near $65,000 and $69,000 at channel resistance. After the second high, prices briefly held before entering a bull trap zone, then broke rising support.
The recent cycle shows a similar progression. Bitcoin increased throughout 2024 and 2025 within an upward channel, reaching peaks of around $109,000 and $126,000. Subsequently, the prices remained stationary between $105K and $97K before eventually falling through the support. The graph indicates a downside target of $35,000, which aligns with the magnitude of the previous cycle.
Risk sentiment continued to weigh on equities in Asia. The MSCI Asia-Pacific index excluding Japan fell 0.3% in early trade. Japan’s Nikkei dropped 1.2%, marking its fifth straight decline.
European markets followed the same direction. Euro Stoxx 50 futures slipped 0.4%, while DAX futures also fell 0.4% as traders assessed the evolving tariff timeline and its implications for growth.
Safe havens moved the other way. Spot gold surged above $4,800 an ounce for the first time. Silver also reached record highs. The dollar weakened as investors continued a broad ‘Sell America’ shift.
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U.S. equities took the heaviest hit in the previous session. The S&P 500 fell 2.06%, while the Nasdaq Composite dropped 2.4%. Futures later steadied, edging up about 0.2% in early trading.
Trade wars influenced the market movement; President Donald Trump reiterated his position on Greenland and threatened to impose tariffs on European imports, which created fears of wider trade disruptions. European leaders were preparing for their reaction, with the European Union calling an emergency summit in Brussels to discuss the issue of 93 billion euros, or $109 billion, tariffs on U.S. imports among officials.
At the same time, Koinly CEO Robin Singh observed that February has always been a good month for Bitcoin. He commented that it would not be surprising if the current risk-off environment resulted in poor Bitcoin performance.
Global markets weakened as risk aversion deepened, pushing Bitcoin down to $88,000 amid $1.07 billion in liquidations. Stocks in Asia, Europe, and the U.S. slid, while gold and silver surged. A repeating Bitcoin chart pattern added pressure as trade tensions and tariff risks continued to shape market behavior.
