"Bitcoin's epic plunge, 700,000 people liquidated, surpassing 312"

On February 3, according to CNBC, cryptocurrencies experienced a safe-haven trend on Sunday, plummeting sharply after US President Donald Trump imposed long-threatened import tariffs on Canada, Mexico and China.

Cryptocurrencies took a safe-haven trend on Sunday, experiencing a steep decline after U.S. President Donald Trump followed through on long-threatened import tariffs on Canada, Mexico and China, according to CNBC.

The latest plunge was 7% to $93,768.66, according to Coin Metrics data. The CoinDesk 20 index, which measures the 20 largest digital assets by market value, fell 19%. Ethereum dropped 25% to its lowest since November.

Over the past 24 hours, the total liquidation across the entire network was $2.119 billion, of which $1.78 billion was on long orders and $270 million was on short orders, according to Coinglass data. A total of 718,513 people were liquidated worldwide. The largest single liquidation occurred on Binance-ETHBTC, valued at $25.635 million.

On March 12, 2020, the crypto market experienced a short-term rapid plunge. At that time, more than 100,000 people were liquidated. According to Coin data, on March 12, within just 24 hours, more than 100,000 people were liquidated on the entire network. The largest single liquidation occurred on Huobi, with BTC worth about 58.32 million US dollars, and the total amount of liquidation on the entire network was 2.93 billion US dollars.

The decline in U.S. goods came after Trump signed an order imposing a 25% tariff on Mexican and Canadian imports and a 10% tariff on China, which will take effect on Tuesday, according to CNBC. U.S. trade with the three countries is about $1.6 trillion.

Many people are asking why BTC fell so much because of the tariff news, said Jim Bianco, founder of Bianco Research. Because BTC is a speculative asset. It is 2x QQQ (if not, it is 3x). After the stock opened, the S&P futures opened down 117 points, a drop of 1.9%. Remember last Monday, Deepseek also caused the S&P index to fall 100 points, a drop of 1.5%, and NDX futures opened down 600 points, a drop of 2.95%.

An ongoing tariff war would be “terrific” for Bitcoin in the long run as the dollar and U.S. interest rates would eventually weaken, said Jeff Park, head of alpha strategies at Bitwise Asset Management.

In Jeff Park's view, to understand the current tariff issue, we must consider two backgrounds: one is the curse of Triffin's dilemma; the other is Trump's personal goals. By analyzing these two backgrounds, the final result becomes clear: tariffs may only be a temporary measure, but the final conclusion is that Bitcoin will not only go higher, but also go faster.

First, the Triffin Dilemma: The dollar’s status as a reserve currency gives the US “exorbitant privileges” in financial transactions/trade, which has a few effects: 1) the dollar is structurally overvalued because other countries need to hold dollars as reserves in an inelastic way; 2) the US must continue to run trade deficits in order to provide these dollars to the world; 3) the US government can therefore continue to borrow at a lower rate than it should. The US wants to keep point 3 but get rid of points 1 and 2 - how? The answer is tariffs.

Recognize that tariffs are often temporary negotiating tools to achieve objectives. The ultimate goal is to seek a multilateral agreement to weaken the dollar, essentially a Plaza Accord 2.0. A hypothetical scenario is that the United States explicitly states that countries must reduce their dollar reserves while requiring them to further extend the duration of their holdings of US Treasuries. In other words, Trump is trying to find a "YCC, not YCC" strategy within the executive branch. Bessant no doubt agrees with this because he realizes that Yellen has left him a bag of garbage. Yellen's legacy is to almost permanently impair the Treasury's ability to manage duration by doubling the debt financing ratio (adding false liquidity), leaving the United States at the mercy of refinancing when interest rates start to rise. The cost to the US taxpayer cannot be underestimated.

The US is thus paving the way to the holy grail of fiat money alchemy: lower dollars and lower yields.

This leads to the second point: Having said this before, Trump’s primary goal is to lower the 10-year rate because his own wealth depends on it: real estate. His obsession with Powell cutting short rates, then realizing it wasn’t working, was the catalyst. Never doubt the pure, transparent, profit-driven motives