Crypto Market Meltdown: Over $1.35B Liquidated as Bitcoin Dives Below $89K
The crypto market suffered a severe downturn in the past 24 hours, with over $1.2 billion in bullish bets wiped out as Bitcoin (BTC) tumbled beneath $89,000, reaching its lowest level since mid-November. The sell-off, which began on Monday, intensified into Tuesday’s Asian trading session, leading to widespread forced liquidations across exchanges.
Bitcoin, Ethereum, and Altcoins Take a Hit
Data from Coinglass shows that Bitcoin futures saw over $530 million in liquidations, while Ethereum (ETH) lost $294 million as prices plummeted. Solana (SOL) dropped 15%, triggering $112 million in liquidations, while XRP and Dogecoin (DOGE) fell 14%, leading to over $80 million in combined losses.
How Liquidations Work
Liquidations occur when exchanges automatically close leveraged positions due to insufficient margin, forcing traders out of their bets. These liquidations exacerbate price declines by triggering more sell orders in the market, creating a snowball effect.
Bybit Leads in Liquidations Amid Ongoing Market Jitters
Among crypto exchanges, Bybit saw the most significant losses, with over $600 million liquidated, followed by Binance at $300 million and OKX at $147 million. The sharp losses come as Bybit recovers from a $1.4 billion hack last week, raising concerns about platform stability during high-volatility periods.
Macroeconomic Uncertainty Fuels Risk-Off Sentiment
Beyond crypto, Nasdaq futures signaled continued declines, while a rising Japanese yen stoked fears of broader market risk aversion. Investors often flock to the yen during times of economic uncertainty, much like they do with gold or the U.S. dollar, pulling liquidity away from riskier assets like Bitcoin.
With mounting macroeconomic uncertainty and weak market sentiment, traders may brace for further downside in the coming days.
