The largest cryptocurrency, Bitcoin, fell below the $ 90,000 threshold on Tuesday due to the sudden break in global risk appetite, triggering a harsh liquidation wave in the cryptocurrency market. Investors who took predominantly bullish positions in leveraged transactions faced serious losses as the price retreated in a short time. The transactions that took place in the last 24 hours clearly revealed how fragile the market is on a balance. The price action marked a sharp change in direction following last week’s sideways trend.
Sharp Fall in Bitcoin Triggered Liquidation Chain
Bitcoin’s price fell at an unprecedented pace later in the US trading session, falling to $87,800, before recovering back above $89,000 in Asian trading. According to CoinGlass data, 183,000 more investors’ positions were forcibly closed during this period, and the total liquidation amount increased to $1.09 billion. The fact that approximately 92 percent of the liquidations came from long positions revealed how intense the upward expectation in the market was.
The biggest loss on the single transactions side was the $13.52 million BTCUSDT position on the Bitget exchange. In leveraged transactions, liquidation means that the stock exchange automatically closes the position as a result of the loss of the investor’s collateral. In such periods, consecutive closings can strengthen the selling pressure and deepen the price decline. What happened was noted as a typical example of how extreme direction in the cryptocurrency market can be reversed in a short time.
Pressure on the Cryptocurrency Market
The background of the shakeup in the cryptocurrency market was not only technical dynamics but also increasing uncertainties on a global scale. US President Donald Trump’s statements that he may impose new customs tariffs on European countries that reject his Greenland-related proposal strengthened the risk aversion tendency of investors. The prospect of trade tensions has brought policy unpredictability back to the agenda.
During the same period, the sales wave in Japanese government bonds caused global interest rates to rise and financial conditions tightened. Global stocks, which reached record levels with a long-term rally led by artificial intelligence-themed optimism, began to lose their appeal in the face of increasing returns. In an environment where positions were inflated and volatility was relatively low, the cryptocurrency market reacted sharply to even a small break in sentiment. According to experts, such liquidation waves often indicate extremes and suggest that the search for direction may continue in the short term.
