Bitcoin slipped below $90,000 on Tuesday after a sudden downturn in global risk sentiment triggered heavy forced selling across crypto markets, erasing more than $1 billion in leveraged bullish positions.

According to CoinGlass data, 183,066 traders were liquidated over the past 24 hours, with total liquidations climbing to $1.09 billion. Nearly 92% of those losses came from long positions, highlighting how crowded bullish bets 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 deplete a trader’s margin, often amplifying price moves during volatile periods. Large liquidation cascades are commonly seen near market extremes, when positioning and sentiment become heavily skewed.

Bitcoin fell as much as 3% during the decline, sliding to a low of $87,800 in late U.S. trading before recovering above $89,000 in Asia hours. The move reversed last week’s consolidation near recent highs.

The downturn in crypto coincided with a broader shift toward caution in global financial markets. Investors were unsettled after President Donald Trump renewed threats to impose tariffs on European countries that rejected his proposal related to Greenland, reigniting concerns over trade tensions and policy uncertainty.

Additional pressure came from a selloff in Japanese government bonds, which pushed global yields higher and tightened financial conditions. These developments weighed on risk assets more broadly, particularly after an extended rally driven by artificial intelligence optimism lifted global equity markets to record highs.

With positioning stretched and volatility subdued, crypto markets were especially exposed once sentiment began to unwind