Bitcoin plunges as US-China tariff war escalates and futures market clears

Trump "Impose 20% tariffs on China"... China "Will respond resolutely"
The liquidation amount in the BTC futures market on the 28th was about 534.8 billion won... BTC plunged in the morning
Altcoins, following BTC, recorded a decline of over 6%... The market is in 'extreme fear'
Sentiment "Investors are calling for 'low-price buying'... It's not the bottom yet"

Bitcoin (BTC) plunged on the 28th due to the expansion of the tariff war by President Trump and the large-scale liquidation in the futures market following it.

US President Donald Trump announced on the 27th that he would impose an additional 10% tariff on China due to the continued influx of drugs into the country, bringing the total tariff on China to 20%. In response to Trump's additional tariff announcement, China expressed its determination to take resolute countermeasures.

As the US and China announced higher tariffs on each other, escalating the tariff war, Bitcoin plummeted. The plunge in Bitcoin led to the liquidation of a large amount of funds that had bet on long (bullish) positions in the futures market.

According to data from the on-chain analysis platform CoinGlass on the 28th, the liquidation amount in the Bitcoin futures market reached about $366.52 million (about 534.79 billion won) in a single day.

The majority of the large-scale liquidation was the liquidation of long bets, with about $323.25 million (about 471.72 billion won) of long bets liquidated in the Bitcoin futures market as of the 28th. The massive liquidation in the Bitcoin futures market led to an approximately 8% plunge in Bitcoin within 2 hours on the 28th.

Altcoins also fell helplessly, recording an average decline of about 6% on the 28th.

◇Bitcoin = As of 4 pm on the 28th based on Upbit, the price of Bitcoin is 11,882 million won. Bitcoin's market share (dominance) was 60.76%.

According to the on-chain analysis platform Sygbit, the long (bullish) and short (bearish) betting ratio in the Bitcoin futures market was 72.44% and 27.56%, respectively.

The on-chain analysis platform Sentiment expressed the opinion that the decline in Bitcoin is not over yet, based on the enthusiasm of investors calling for 'low-price buying'.

Sentiment said that posts mentioning 'Bitcoin low-price buying' have been flooding various SNS such as X, Reddit, and Telegram, and the interest of investors in buying Bitcoin has reached the highest level in 7 months.

Sentiment pointed out that while many investors are eyeing Bitcoin's low-price buying due to the plunge, this is not a signal of a rebound. Sentiment described that "the ideal conditions for a rebound are when the enthusiasm of the crowd subsides, which is the point when retail investors have suffered enough pain." It further advised to "refer to the bullish signal when optimism subsides in the market and buy orders decrease."

◇Rising Coin = As of 4 pm on the 28th based on Upbit, the cryptocurrency that recorded the largest increase compared to the previous trading day was Nervos (CKB), which rose about 13% from 24 hours ago.

Nervos Network is the abbreviation for 'Common Knowledge Base', a Layer 1 Proof-of-Work, value storage open-source public blockchain protocol. It was built to solve problems such as scalability, cryptoeconomics, and the limitations of adopting public blockchain technology in the existing blockchain.

Nervos provides programmability, cross-chain interoperability, and scalability solutions to the Bitcoin ecosystem.

◇Fear and Greed Index = The Digital Asset Fear and Greed Index provided by Alternative is 16 points, entering the 'Extreme Fear' stage. This stage is characterized by high trading volume and strong volatility. The market is likely to be in a buying zone for institutions as it approaches the bottom.

The Cryptocurrency Relative Strength Index (RSI) provided by Sygbit is 22.6, recording an 'oversold' state. RSI measures the relative strength between the upward and downward pressure on the price of a specific asset, indicating the degree of overbought and oversold of the asset.

Reporter Kwon Seung-won ksw@blockstreet.co.kr