Bitcoin Loses $88,000 Support as $1B in Leveraged Bets Unwind

Bitcoin slid below the $90,000 mark on Tuesday after an abrupt shift in global risk sentiment sparked forced selling across cryptocurrency markets.

The move caught traders off guard and accelerated losses in heavily leveraged positions. The selloff unfolded rapidly, breaking a period of relative calm that had held through much of last week.

During late U.S. trading, Bitcoin fell about 3%, hitting a session low of $87,800 before staging a modest rebound above $89,000. The drop marked a decisive break from recent consolidation near record highs, signaling that investor confidence had begun to erode.

Key Points

• Bitcoin fell to $87,800 on Tuesday before recovering above $89,000.
• CoinGlass reports that $1.08 billion in crypto positions were liquidated over the last 24 hours.
• 183,374 traders were forced out of positions during the liquidation wave.
• Long positions accounted for roughly 92% of total liquidations.
• The largest single liquidation was a $13.52 million BTCUSDT position on Bitget.

Crowded Long Positions Amplify the Move

As prices slipped, liquidation data underscored how lopsided market positioning had become. CoinGlass data showed that $1.08 billion in crypto positions were wiped out within 24 hours, impacting more than 183,000 traders.

Nearly 92% of those liquidations came from long positions, showing that many traders had been positioned for continued gains. The largest individual forced closure, a $13.52 million BTCUSDT trade on Bitget, illustrated the extent of leverage built up across the market.

Global Risk Sentiment Turns Cautious

The crypto downturn unfolded alongside rising unease in broader financial markets. Fresh tariff threats from U.S. President Donald Trump toward European nations, following their rejection of a proposal linked to Greenland, revived concerns over trade policy uncertainty and weighed on investor sentiment.

Meanwhile, developments in the bond market added another layer of stress. A selloff in Japanese government bonds pushed global yields higher, thereby tightening financial conditions and dampening appetite for risk-sensitive assets such as cryptocurrencies.

The pullback followed an extended rally in global equities fueled by optimism around artificial intelligence.

Precious Metals Move Higher as Crypto Pulls Back

While digital assets declined, investors turned toward precious metals. Gold continued to trade at record levels, rising 1.53% over the past 24 hours to $4,836 per ounce.

Silver followed a similar path. The metal traded at $94.37 after reaching a new record price of $95.71 earlier in the session. The contrasting performance highlighted how capital shifted as risk sentiment deteriorated.