BTC plunge to $89,000 wipes out $1 billion in long liquidations

Bitcoin slipped below $90,000 on Tuesday as a sudden shift toward risk aversion in global markets triggered a wave of forced liquidations across the crypto sector, wiping out more than $1 billion in leveraged bullish positions.

Figures from CoinGlass showed that 183,066 traders were liquidated in the past 24 hours, with total losses reaching $1.09 billion. Long positions accounted for roughly 92% of the total, reflecting how crowded bullish positioning had become. The largest single liquidation was a $13.52 million BTCUSDT position on Bitget.

Liquidations occur when exchanges automatically close leveraged trades after losses erode a trader’s margin, typically accelerating price moves during sharp market swings. Large liquidation cascades are often seen near market extremes, when positioning becomes heavily skewed and sentiment overshoots.

During the selloff, Bitcoin fell as much as 3%, touching a low of $87,800 in late U.S. trading before recovering above $89,000 in Asian hours. The move reversed last week’s period of consolidation near recent highs.

The downturn in crypto mirrored growing caution across broader financial markets. Investor sentiment was rattled after President Donald Trump renewed threats to impose tariffs on European countries that rejected his Greenland-related proposal, reviving concerns over trade tensions and policy uncertainty.

Meanwhile, a selloff in Japanese government bonds pushed global yields higher, tightening financial conditions and adding pressure to risk assets. These developments weighed on markets already stretched after a prolonged rally driven by optimism around artificial intelligence lifted global equities to record levels.

With volatility compressed and positioning extended, crypto markets were particularly exposed once sentiment began to unwind.