Crypto Liquidations Top $1.35B as Bitcoin Crashes Below $89K, XRP and DOGE Plunge

The cryptocurrency market witnessed a sharp downturn, with traders suffering over $1.2 billion in losses in the past 24 hours as Bitcoin (BTC) dropped below $89,000—its lowest level since mid-November. The sell-off, which began Monday, intensified during Tuesday’s Asian trading session, sparking widespread liquidations.

Bitcoin, Ethereum, and Altcoins Face Heavy Liquidations

According to Coinglass, Bitcoin futures accounted for $530 million in liquidations, while Ethereum (ETH) saw over $294 million wiped out. Solana (SOL) tumbled 15%, leading to $112 million in liquidations, while XRP and Dogecoin (DOGE) each fell 14%, resulting in $80 million in combined trader losses.

Understanding Liquidations

A liquidation occurs when a trader’s leveraged position is forcefully closed by an exchange due to insufficient margin to cover potential losses. This cascade effect often intensifies price declines, as automatic sell orders flood the market.

Bybit Leads Liquidations Amid Broader Market Uncertainty

Among exchanges, Bybit saw the largest liquidations, totaling over $600 million, followed by Binance at $300 million and OKX at $147 million. Notably, Bybit’s figures come just a week after the platform fully recovered from a $1.4 billion hack.

Macroeconomic Factors Add to Crypto Market Weakness

Beyond crypto, Nasdaq futures pointed to continued losses, while a strengthening Japanese yen signaled rising investor caution. The yen, widely regarded as a safe-haven asset, has been surging on speculation that the Bank of Japan (BOJ) may soon hike interest rates—a move reminiscent of last August when similar conditions triggered broad-based market sell-offs.

With macroeconomic uncertainty and increased risk-off sentiment, Bitcoin and the broader crypto market could remain under pressure in the coming days.