Bitcoin fell below the $76,000 level and immediately wiped out $100 million in long positions in just one hour. This sudden drop halted the crypto market’s positive momentum, which had pushed the price past the $79,000 threshold earlier this week. Before the latest wave of selling pressure drained the market, Bitcoin had actually managed to trade stably around the $77,600 mark.
The trigger for this sharp drop came from the escalation of the trade war in the North American region. This macro tension pushed back investor optimism right in the middle of the ongoing crypto rally.
Canada Retaliates Starting September 8
The root of the traders’ panic stemmed from escalating tariff policies between the United States and its northern neighbor. The United States had previously imposed a 50% tariff on Canada. This unilateral move triggered protests and was ultimately met with a strong response from Canada, which decided to implement retaliatory tariffs on US goods starting September 8.
This retaliatory move from Canada deepens macroeconomic uncertainty for global financial markets. The burden of US-Canada trade tensions has spilled over into the crypto market. The latest data report from @WatcherGuru on X confirmed that a series of liquidations triggered by this news wiped out $100 million in long positions within a 60-minute window.
The domino effect of this trade conflict is nothing new for the crypto market. Concerns surrounding the implementation of US-Canada tariffs had previously triggered major panic and wiped out long positions of a much more massive value, namely $550 million within a one-hour duration. This consecutive liquidation record proves how vulnerable crypto assets are to international trade policy sentiments.
How Strong Is the Rest of This Rally?
The pullback from its peak at $79,000 is now the true test for the market rally’s resilience. Traders who had already opened long positions were forced to bear heavy losses when the price missed their initial calculations due to macro variables.
Although short-term sentiment is dominated by selling pressure, the market still holds a glimmer of hope for the year-end outlook. Prediction platform Polymarket currently shows a 43% chance that Bitcoin will reach the $90,000 level before December 31, 2026. This figure below the 50% threshold indicates that bets for higher prices still exist, but enthusiasm is held back by macroeconomic uncertainty.
This series of consecutive losses offers a costly lesson for market participants: the price direction can reverse rapidly just because of one newly passed tariff policy.
Reported by @WatcherGuru on X.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
