Bitcoin plunged sharply this week, erasing the gains it made in 2026. Reports from MintGlass show that 167,513 traders were forced out of their positions in the last 24 hours, with total liquidations reaching $857 million, with most of the losses coming from long bets. The price fell below the key $88,000 area on major exchanges as traders were forced out of leveraged positions.
Liquidations and rapid decline
According to CoinGlass and market trackers, the liquidations were concentrated in long positions, amplifying the decline and making the move faster than a simple sell-off would have been. The market value of cryptocurrencies dropped by hundreds of millions in the same short period of time.
Markets became risk-averse as tariff threats spread
Reports note that renewed tariff threats from US President Donald Trump towards some European countries sparked a new ‘Sell America’ trade, driving investors away from US assets and towards safer investments.
Stocks fell and the dollar weakened. At the same time, traders were watching big moves in Japan’s bond market, where yields rose sharply, increasing pressure on global liquidity. These bond moves are important because they can force carry trades to unwind, taking money out of risky assets – including crypto.
A tug between liquidity and safe havens
The sell-off didn’t happen for one reason. Reports point to a combination of political shocks, bond market stress and a wave of foreclosures as the main drivers. As money flowed into safe havens, gold rose to new highs while crypto lost ground. Many investors treated Bitcoin as a risky asset in this episode, which is sold to cover losses or margin calls elsewhere.
Different trackers provided slightly different figures for total market losses and exact liquidations over 24 and 48 hours. That’s normal when markets move quickly and data is pulled from different exchanges and windows. Still, the overall picture was clear: rapid leverage-induced deleveraging caused prices to fall and wiped out Bitcoin’s year-to-date gains.
Markets will pay attention to liquidity and diplomacy
Looking ahead, investors will likely be watching three things closely: moves in global bond markets, any escalation or de-escalation around tariff threats related to Greenland, and whether the sell-off slows. When liquidity conditions calm down, risky assets can recover more easily. If they continue to tighten, the pressure on cryptocurrencies and stocks could continue.
Featured image from Pexels, chart from TradingView