On January 20th, Bitcoin experienced a fierce correction. After reaching a high above $95,000 over the weekend, it suddenly dropped to around $91,000, with the intraday low even touching the critical support level of $90,000. The 24-hour decline was between 2-3%, but the most intense was the plunge within two hours—dropping over $4,000 directly, completely liquidating leveraged longs, with daily liquidation amounts reaching $860 million.

The trigger for this crash couldn't be clearer: Trump started issuing tough statements again. He announced increased tariffs on multiple European countries (Denmark, Germany, France, the UK, Norway, etc.), stemming from the same old issue—the ownership of Greenland. The tariffs started at 10% and are set to rise to 25% by June unless the US can "fully acquire" Greenland.

Once the news broke, global risk aversion skyrocketed. US stock futures plummeted, and funds flooded into safe-haven assets like gold and silver. Gold hit a new all-time high today, breaking through $4,700 per ounce (with some data even exceeding $4,730). As a high-beta risk asset, BTC naturally took the brunt and was directly targeted for liquidation.

Adding fuel to the fire was the liquidity issue caused by MLK Day. The US markets were closed, and with thin order books, any turbulence easily led to a "flash crash." The derivatives market, with its high leverage, could trigger chain reactions from a single spark, and many are already calling it "Black Monday."

However, a calm analysis of on-chain data and market structure suggests this is more a healthy deleveraging and shakeout rather than a sign of the end of a bull market. After the liquidation of longs, overall leverage has significantly decreased, and funding rates have shifted from neutral to negative. The momentum of the shorts has not continued to expand, indicating the market is self-repairing. Short-term volatility often signals a buildup phase.