[Bitop Review] Market Concerns Persist as Trump Prepares to Take Office, Bitcoin Briefly Falls Below 90,000, Over 265,000 Traders Liquidated for $800 Million

On Monday, U.S. stocks ended mixed, and U.S. Treasury yields remained at high levels as market concerns persisted ahead of Trump's imminent inauguration. Bitcoin briefly fell below the 90,000 mark, with total liquidations across the network reaching $820 million, predominantly in ETH at $210 million and BTC at $170 million.

Market Concerns Persist as Trump Prepares to Take Office

According to Bloomberg, the S&P 500 index briefly fell below its closing price from November 5 (before Trump was elected president) yesterday, closing only slightly above that level on Monday. As concerns about persistent inflation grow, investors are selling stocks, and interest rates are rising, anticipating that the Federal Reserve might need to cut back on this year's rate cut plans to combat inflation. The surprisingly strong employment data from last Friday will only heighten these concerns.

Several reasons contribute to the downturn: worsening economic prospects, increasing worries about high stock valuations, and growing concerns about the Federal Reserve's path to rate cuts. Traders have also been assessing the potential impacts of Trump's proposed policies, which include imposing comprehensive tariffs on imported goods and a massive deportation of low-wage undocumented workers.

These concerns have been reflected in the bond market, with the 20-year Treasury yield exceeding 5%. The yield on the 10-year Treasury, which is sensitive to policy changes, is also moving in that direction, reaching its highest level since the end of 2023.

Stock market volatility is also on the rise, with the Chicago Board Options Exchange Volatility Index (VIX) hovering around 20, a level that typically indicates trader anxiety.

Bitcoin Briefly Falls Below 90,000

Due to the U.S. government's announcement of further restrictions on the export of AI chips and technology, chip stocks continued to decline yesterday. Bitcoin also plummeted from 95,000 to $89,256, but has since rebounded to $94,668 at the time of writing.

Over 265,000 Traders Liquidated for $800 Million

According to CoinGlass data, approximately $800 million in liquidations occurred across the network in the last 24 hours, with the bulk coming from Ethereum at $204 million and Bitcoin at $164 million; long positions accounted for $580 million while short positions amounted to $214 million, affecting over 265,000 traders.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.