Crypto Market Crash Wipes Out $1.2B as Bitcoin Dips Below $89K

Crypto traders suffered over $1.2 billion in liquidations in the past 24 hours as Bitcoin (BTC) tumbled below $89,000, its lowest level since November. The downturn, which intensified during Asian trading hours on Tuesday, saw massive losses across major cryptocurrencies.

Futures tracking Bitcoin accounted for $530 million in liquidations, while Ethereum (ETH) traders lost $294 million. Solana (SOL) plunged over 15%, wiping out $112 million in futures bets, while XRP and Dogecoin (DOGE) shed a combined $80 million following a 14% drop.

Crypto exchanges Bybit, Binance, and OKX led liquidation figures, with Bybit alone recording over $600 million in losses. Binance saw $300 million wiped out, while OKX followed with $147 million. Liquidations occur when leveraged traders fail to maintain margin requirements, forcing exchanges to close positions automatically.

The broader financial markets showed signs of risk aversion, with Nasdaq futures pointing to further tech stock losses. Meanwhile, a stronger Japanese yen sparked investor concerns, reminiscent of August’s market turmoil. Traditionally, the yen, along with gold and the U.S. dollar, serves as a safe haven during economic uncertainty, leading investors to exit riskier assets like Bitcoin and equities.

Adding to market jitters, Bybit recently recovered from a $1.4 billion hack, raising concerns over security risks in the crypto space.

With increasing volatility and traders liquidating positions at a rapid pace, the crypto market remains under pressure, leaving investors bracing for further downside.