Bitcoin has once again found its way downward, dropping below $90,000, while the crypto market recorded a staggering $150 million in liquidations in just a few hours. This movement comes as the Wall Street markets open and trigger a new wave of selling pressure, partly due to the uncertain trading conditions in the US.

Bitcoin Below $90K Due to Selling Pressure

On March 3, as Wall Street began the trading day, Bitcoin saw a sharp 5% decline and dropped below $90,000. This happened shortly after an initial rise, when speculation about the possibility of a US strategic crypto reserve moved the markets. However, the return of traditional financial institutions and the uncertainty around potential trade restrictions by the US government pressured the price down. A suggestion from US Commerce Secretary Howard Lutnick, that President Donald Trump would decide on tariffs against Canada later that day, contributed to the nervousness in the markets.

Liquidations Exceed $150 Million

Within four hours after the market open, over $150 million in liquidations were recorded in the crypto sector, according to data from CoinGlass. This indicates how strong the selling pressure was and how quickly traders had to close their positions. Despite this drop, there was some positive expectation due to Trump's announcement of an "investment announcement" scheduled for 1:30 PM ET. This gave the market some hope, though the situation remained filled with uncertainties.

Positive Expectations Despite Volatility

Nonetheless, there remains some hope for Bitcoin's future. Trading firm QCP Capital emphasizes the importance of maintaining a balanced view. Despite the volatility and recent pullback, it is likely that Trump will do whatever it takes to avoid a prolonged stock market downturn. The broader market unease is also reflected in the rise of the VIX volatility index.

Bitcoin Hopes for a Higher Low

Many traders are hoping that Bitcoin can establish a "higher low," which could potentially lead to a rally towards the lost support zone around $100,000. Speculation suggests that Bitcoin may find room to reclaim the range that was lost during the recent correction.

Conclusion: The Market Remains Volatile

The current market conditions remain volatile and unpredictable, with many factors influencing the price of Bitcoin. It is essential for traders to be prepared for sudden market changes and always consider the potential risks. The markets will certainly react to new developments in the coming days, so it is important to stay informed about the latest trends and announcements.
Disclaimer: This is not financial advice. Always consider your own research and professional advice.