Bitcoin (BTC) Price Crashes to $97,000 as Global Financial Markets See Widespread Decline

Traders are scrambling to cover their positions after US President Donald Trump announced 10% tariffs on China, and 25% each for Mexico and Canada on Feb. 1.

Bitcoin price dropped to $97,000 on Monday, as global financial markets saw a sell-off following US President Donald Trump’s announcement of tariffs on China, Mexico and Canada.

Bitcoin’s sell pressure was evident throughout the day, with the BTC/USD pair testing the $96,000 support level. Historical price action shows that similar liquidation events often drive prices to retest lower ranges before stabilizing.

After US President Donald Trump announced 10% tariffs on China, and 25% each for Mexico and Canada on Feb. 1, traders were seen covering their positions amid a widespread sell-off in global financial markets.

Now February has historically always been a bullish month, so Bitcoin’s fall is making us wonder if things might be different this year. After all, we are witnessing the strangest case of the bull market cycle in history. Does anyone even know what’s going on anymore?

Bitcoin price remained under pressure on Monday, as sell orders pushed the world’s largest cryptocurrency to test its $96,000 support level. BTC/USD failed to recover to $98,000, and if support at $97,000 cracks, the next price target sits between $95,000 and $96,000.

Bitcoin derivatives saw trading volume spike by over 100% to $94.15 billion, but open interest dropped by 1.49%, showing traders closing positions over fears of further losses.

Funding rates on Bitcoin perpetual futures contracts remained positive, indicating that long positions continued to dominate, although the imbalance was quickly becoming a liability.

In the past 24 hours, crypto liquidations surged past $872 million, with Bitcoin long positions accounting for $762 million of that total. A $9.67 million long position on Bitfinex was the largest individual liquidation.

Bitfinex analysts warned that if Bitcoin prices continue to fall, overleveraged long positions will face further forced liquidations, triggering a cascading sell-off.

However, some traders hoped for a recovery near $97,000, but that support remained fragile. Historical price action shows that similar liquidation events often drive prices to retest lower ranges before stabilizing.

Technical indicators showed bears were in charge, with the MACD turning negative as the MACD line crossed below the signal line, a key sign of strong bearish sentiment.

The histogram on the MACD chart was widening in negative territory, indicating that this was not a short-term pullback but part of a larger trend reversal.

Bitcoin’s RSI fell to 47, placing it in neutral territory but approaching oversold levels. If the RSI drops below 40, selling pressure will likely worsen.

The chart also showed a series of lower highs and lower lows, a classic sign of a bearish market structure. Any attempt by Bitcoin to retest the $99,000 resistance level could fail without stronger buying momentum.