Bitcoin plummeted this week and erased gains made in 2026. Reports from CoinGlass show that in the last 24 hours, 167,513 traders were forced to exit their positions, and the total number of liquidations reached $857 million, with most of the losses due to long bets. The price on major exchanges fell below the key $88,000 area as investors were forced to exit leveraged positions.
Liquidations and rapid decline
According to CoinGlass and market monitors, liquidations were focused on long positions, which amplified the decline and made the move faster than a straight sell-off. The value of the cryptocurrency market has dropped by hundreds of millions in the same compact period of time.
Markets have become less risk-averse as tariff threats spread
Reports note that it has been refurbished customs threats from US President Donald Trump towards some European countries initiated a novel “Sell America” ​​deal that pushed investors away from US assets towards safer bets.
Stock markets fell and the dollar weakened. At the same time, investors saw substantial moves in the Japanese bond market, where yields rose sharply, increasing pressure on global liquidity. These bond moves are essential because they can force carry trades to end, drawing money out of risky assets – including cryptocurrencies.
The tug of war between liquidity and secure havens
The sale didn’t happen for one reason only. Reports indicate that the main factors driving this situation are political upheaval, bond market tensions and a wave of forced liquidations. As money flowed into secure havens, gold rose to novel highs and cryptocurrencies lost popularity. Many investors treated Bitcoin as risky assets in this episode, selling them to cover losses or margin calls elsewhere.
Different trackers reported slightly different data on total market losses and exact liquidations over 24 and 48 hours. This is normal when markets move quickly and data is pulled from different exchanges and windows. Still, the substantial picture was clear: a rapid, leveraged detente sent prices crashing and wiping out Bitcoin’s yearly gains.
Markets will watch for liquidity and diplomacy
Looking ahead, investors will likely be watching three things closely: movements in global bond markets, any escalation or de-escalation around Greenland-related tariff threats, and whether forced selling slows down. If liquidity conditions composed down, risky assets will be able to recover more easily. If they continue to tighten, the pressure on cryptocurrencies and stocks could continue.
Featured image from Pexels, chart from TradingView
