Bitcoin faced a sharp sell off after slipping below the critical $90,000 mark, alarming investors across the crypto market. The sudden decline marked a dramatic shift from last week’s stable conditions, exposing how fragile market confidence had become amid rising global uncertainty.
The drop intensified during late US trading hours when Bitcoin price touched $87,800 before recovering slightly above $89,000 in Asian sessions. According to market data, more than 183,000 trader positions were forcibly closed in a single day. Total liquidations reached $1.09 billion, with nearly 92 percent coming from long positions. One highly leveraged trade alone suffered losses exceeding $13.5 million, highlighting the risks of aggressive betting.
External developments played a major role in amplifying the sell off. Fresh trade tariff threats from President Donald Trump raised geopolitical tensions, pushing investors toward a risk off stance. At the same time, a sell off in Japanese government bonds drove global yields higher, tightening financial conditions and pressuring risk assets like cryptocurrencies.
As global yields rise and safe haven demand strengthens, crypto volatility remains elevated. Analysts warn that liquidation cascades often signal extreme market conditions, suggesting short term uncertainty ahead. Investors are urged to remain cautious as macroeconomic and political factors continue to shape market direction.
