Crypto Liquidations Surpass $1.35B as Market Downturn Deepens
Crypto traders suffered over $1.2 billion in losses within the past 24 hours as the market sell-off extended into Tuesday’s Asian session, pushing Bitcoin (BTC) below $89,000—its lowest level since mid-November.
Beyond Bybit’s figures, most major exchanges report only a single liquidation per second, meaning the actual losses could be significantly higher than the $1.35 billion recorded across both long and short positions.
Bitcoin, Ethereum, and Altcoins See Heavy Liquidations
Bitcoin futures led the wipeout, accounting for over $530 million in liquidations, while Ethereum (ETH) positions lost $294 million. Among altcoins, Solana (SOL) dropped over 15%, triggering $112 million in liquidations. Meanwhile, XRP and Dogecoin (DOGE) both declined 14%, contributing to a combined $80 million in trader losses.
What Are Liquidations?
Liquidations occur when an exchange automatically closes a trader’s leveraged position due to a lack of sufficient margin to maintain the trade. This often happens in high-volatility markets when traders are unable to cover margin requirements, leading to forced sell-offs.
Bybit, Binance, and OKX Lead Liquidation Figures
Among exchanges, Bybit recorded over $600 million in liquidations, followed by Binance at $300 million and OKX at $147 million. The losses come just days after Bybit fully recovered from a $1.4 billion hack last week.
Broader Market Woes Add to Crypto’s Decline
Beyond crypto, Nasdaq futures signaled extended losses in tech stocks, while a strengthening Japanese yen added to risk-off sentiment. The yen, often viewed as a safe-haven asset, tends to attract investors during times of economic uncertainty—causing a shift away from riskier investments like crypto and equities.
This shift toward defensive assets mirrors the risk aversion seen in August, when a strong yen coincided with a sharp decline in Bitcoin and other speculative markets.
