TLDR
- $9.41 billion in shorts at risk of liquidation if Bitcoin price reaches $90,000
- Bitcoin currently trading around $83,029-$84,340, up slightly in recent trading
- Previous surge to $87,000 already wiped out $77 million in short positions
- Despite US-led tariff war, Bitcoin’s price weakness started before Trump took office
- Spot Bitcoin ETFs saw $2.75 billion in net inflows even as trade war escalated
Bitcoin’s price movements have market participants on edge as the cryptocurrency approaches key levels that could trigger massive liquidation events. Currently trading in the $83,000-$84,000 range, Bitcoin has shown modest upward momentum, but remains below its previous high points. Multiple factors are influencing its price trajectory, from short positions to trade wars to broader economic indicators.
The crypto market is closely monitoring Bitcoin as it nears the $90,000 mark. Data analysis suggests this price point could trigger liquidations of short positions worth $9.41 billion. Short liquidations occur when traders betting against rising prices are forced to close their positions as the market moves against them.
According to crypto analyst Seth, a liquidation heatmap shows that substantial short positions are concentrated between $80,000 and $90,000. The largest risk zone appears at the $90,000 level. If Bitcoin reaches this threshold, it could force shorts to cover their losses, potentially pushing prices even higher.
9.41 billion USD in short liquidations when $BTC hits 90K! 😂 🫶 https://t.co/v4IknkQzVE pic.twitter.com/j1jfjMBSPz
— Seth (@seth_fin) March 31, 2025
This wouldn’t be the first liquidation event in recent weeks. A previous surge to $87,000 already wiped out $77 million in Bitcoin short positions. The $90,000 mark now represents both a psychological barrier and a potential trigger point for a short squeeze in the market.
Market Dynamics Beyond Tariffs
While many attribute Bitcoin’s recent price behavior to the US-led global trade war, other factors were influencing the cryptocurrency’s performance well before these tensions escalated. Bitcoin had struggled to maintain momentum above $100,000 for months prior to the trade war announcements.
The S&P 500 index hit an all-time high on February 19, thirty days after the trade war began. Meanwhile, Bitcoin had already been showing signs of weakness. This timeline suggests that Bitcoin’s difficulties preceded the trade tensions rather than resulted from them.
Interestingly, institutional interest remained strong despite the trade conflicts. Spot Bitcoin exchange-traded funds (ETFs) saw $2.75 billion in net inflows during the three weeks following January 21, when the initial tariff announcements were made. This continued even as trade tensions between major economies escalated.
Some market participants believe that Strategist’s $5.25 billion worth of Bitcoin purchases since February has helped maintain support above the $80,000 level. Regardless of the buyers’ identities, Bitcoin has managed to hold key support levels despite various pressures.
Economic Factors Impacting Price
Inflationary trends have played a significant role in Bitcoin’s price movements. In February, the US Personal Consumption Expenditures Price Index rose 2.5% year-over-year, while the eurozone Consumer Price Index increased by 2.2% in March. These relatively controlled inflation numbers have implications for Bitcoin.
Bitcoin’s strong gains in late 2022 came when inflation soared above 5%, as many viewed cryptocurrency as a hedge against monetary debasement. However, with inflation more under control in 2025, lower interest rates might favor real estate and stock markets more directly than Bitcoin.
The job market has also influenced trader sentiment. February saw US job openings near a four-year low, while yields on US 2-year Treasury fell to a six-month low of 3.88%. This indicates growing risk aversion among investors, which typically doesn’t favor Bitcoin and other high-risk assets.
Market experts like “Crypto Fella” suggest Bitcoin might face a market shakeout soon. Their analysis points to a possible price drop to the support zone between $78,692 and $70,000 before potentially pushing toward a $94,655 target.
Some of Bitcoin’s price weakness stems from unrealistic expectations regarding US Treasury Bitcoin acquisitions. President Trump’s campaign promise of a “strategic national Bitcoin stockpile” created anticipation that wasn’t fully realized when the actual executive order was issued on March 6.
As Bitcoin hovers in the $83,000-$84,000 range, the market remains attentive to both short-term liquidation triggers and longer-term economic factors. The next few weeks could prove decisive as Bitcoin tests important price levels and responds to evolving market conditions.
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