Trump Says US Economy ‘Booming’ as Crypto Suffers $900M+ Liquidations
U.S. President Donald Trump told attendees at the World Economic Forum in Davos that “the economy is booming” and called the U.S. “the economic engine” of the world. The remarks contrasted with turmoil in crypto markets: more than $900 million in liquidations hit digital assets in the past 24 hours, with roughly $802 million coming from long positions, according to CoinGlass. Bitcoin briefly dipped below $88,000 before recovering above that level, while altcoins experienced sharper losses as leverage was unwound. The crypto sector’s market cap fell over 2% in 24 hours, dropping below $3 trillion. The article notes broader economic nuance: Q3 2025 GDP growth was strong (about 4.3% annualized) but inflationary pressures, slower hiring and tariff-driven costs complicate the picture. Geopolitical headlines, including tariff threats and commentary around Greenland, are cited as adding market fear and contributing to volatility. Key keywords: crypto liquidations, Bitcoin (BTC), Ethereum (ETH), market volatility, leverage unwind, Davos, Trump economy.
Bearish
The immediate market reaction — over $900M in liquidations, with ~ $802M from longs — signals forced deleveraging and short-term selling pressure. Rapid liquidations historically amplify volatility and can cascade into broader downside, especially for altcoins which showed deeper losses. Political and tariff-related headlines increase risk-off sentiment; combined with signs of uneven economic recovery and persistent inflation, traders may reduce leveraged exposure. Short-term: elevated volatility and potential further downside as leverage is worked out and risk sentiment cools. Medium-term: if macro headlines ease and BTC holds key technical support (e.g., rebounds back above $88K with steady volume), liquidity recovery and renewed buying could stabilize markets. But repeated geopolitical shocks or renewed tariff escalation would sustain bearish pressure. Comparable prior events: the October 10 record liquidations mentioned in the article and other large liquidation spikes (e.g., May–June 2021 and November 2022 deleveraging episodes) produced sharp short-term drawdowns followed by multi-week consolidation. For traders: reduce leverage, monitor margin levels and funding rates, watch BTC support/resistance levels and macro headlines for signs of stabilization before adding directional exposure.