Bitcoin Dips Under $89K, Wiping Out $1.2B in Bullish Crypto Bets; XRP Tumbles 14%

Crypto Market Turmoil: Liquidations Exceed $1.35B as Bitcoin Dips Below $89K

The ongoing crypto market downturn has triggered over $1.2 billion in trader losses in the past 24 hours, with Bitcoin (BTC) falling below $89,000 for the first time since mid-November. The sell-off intensified during Tuesday’s Asian trading hours, leading to widespread liquidations across futures markets.

Bitcoin, Ethereum, and Altcoins See Heavy Losses

Data from Coinglass shows that Bitcoin futures liquidations surpassed $530 million, while Ethereum (ETH) traders lost over $294 million. Among major altcoins, Solana (SOL) saw $112 million in liquidations following a steep 15% drop, while XRP and Dogecoin (DOGE) lost 14% each, resulting in $80 million in combined trader losses.

How Liquidations Work

Liquidations occur when exchanges forcefully close leveraged positions due to insufficient margin. This typically happens when a trader’s position moves against them, and they lack the necessary funds to keep it open—leading to automatic sell-offs that can further exacerbate price declines.

Bybit, Binance, and OKX Face the Largest Liquidations

Bybit recorded the highest liquidations at over $600 million, followed by Binance at $300 million and OKX at $147 million. Notably, Bybit’s figures come just days after the exchange recovered from a $1.4 billion security breach.

Broader Market Pressure Fuels Risk-Off Sentiment

Beyond crypto, Nasdaq futures signaled extended losses, while a surging Japanese yen raised concerns over rising risk aversion. The yen, often seen as a safe-haven asset, has strengthened amid speculation that the Bank of Japan (BOJ) may hike interest rates—a move that previously triggered market turbulence in August.

As investors shift toward less risky assets, Bitcoin and other speculative markets could face continued downward pressure in the near term.