Bitcoin’s Fall Under $89K Triggers $1.2B in Long Liquidations, XRP Down 14%

Crypto Bulls Suffer $1.2B Wipeout as Bitcoin Crashes Below $89K

The crypto market saw a brutal liquidation spree over the past 24 hours, wiping out over $1.2 billion in bullish positions as Bitcoin (BTC) slid below $89,000, its lowest price since November. The ongoing market correction, which began on Monday, accelerated during Tuesday’s Asian trading session, triggering a wave of forced sell-offs across exchanges.

Massive Liquidations Shake the Market

Data from Coinglass shows Bitcoin futures alone accounted for $530 million in liquidations, while Ethereum (ETH) lost $294 million as its price sharply declined. Solana (SOL) plummeted 15%, triggering $112 million in liquidations, while XRP and Dogecoin (DOGE) saw a combined $80 million wiped out as both tokens dropped by more than 14%.

What’s Driving the Sell-Off?

Liquidations occur when traders using leverage fail to maintain sufficient margin, leading to automatic position closures by exchanges. This process often exacerbates price declines, creating a cascade of selling pressure across the market.

Meanwhile, Bybit led the liquidation figures, with over $600 million in leveraged trades wiped out, followed by Binance at $300 million and OKX at $147 million. The staggering losses come as Bybit continues recovering from last week’s $1.4 billion hack, adding further uncertainty to the market.

Global Markets Send Bearish Signals

Beyond crypto, Nasdaq futures are flashing red, signaling continued weakness in tech stocks. Meanwhile, a strengthening Japanese yen has reignited concerns of a broader shift to risk-off sentiment, reminiscent of market conditions in August.

Historically, investors pile into the yen during economic uncertainty, much like gold or the U.S. dollar, as a safe-haven asset. This trend often drains liquidity from riskier investments, including Bitcoin and the broader crypto market.

With macroeconomic uncertainty rising and no clear bullish catalyst in sight, traders remain on edge as crypto markets navigate turbulent waters.