Crypto Market Faces Major Liquidations

Crypto bulls nursed at least $1.2 billion in losses over the past 24 hours as the market slump, which began on Monday, worsened during Asian trading hours on Tuesday, pushing Bitcoin (BTC) down to under $89,000, its lowest price since mid-November.

Apart from Bybit, exchanges report only one liquidation per second, suggesting total losses are much higher than the $1.35 billion recorded across long and short trades. Futures tracking Bitcoin registered over $530 million in liquidations, while Ether (ETH) saw over $294 million evaporate. Solana (SOL) futures lost $112 million after the token dropped more than 15%, and a 14% decline in XRP and Dogecoin (DOGE) accounted for over $80 million in losses collectively.

Liquidations occur when an exchange forcefully closes a trader’s leveraged position due to partial or total loss of the trader’s initial margin. This usually happens when a trader cannot meet the margin requirements or lacks sufficient funds to keep the trade open.

Crypto exchange Bybit — which fully recovered assets after a $1.4 billion hack last week — led liquidation figures with over $600 million lost on its platform, followed by Binance at $300 million and OKX at $147 million.

Nasdaq futures indicated continued losses in technology stocks, while strength in the Japanese yen triggered fears of an August-like risk aversion. Investors typically turn to the yen during economic uncertainty or market stress, viewing it as a safe haven, similar to the U.S. dollar or gold. This risk-off sentiment usually puts pressure on riskier assets like Bitcoin and equities, as investors seek safer investment options.