Bitcoin Dips to $98K While Crypto Liquidations Surge Past $2 Billion

TLDR

• The cryptocurrency market lost about 250 billion dollars in value on Tuesday.
• Bitcoin fell below the 100,000 dollar mark for the first time since May.
• Ethereum experienced one of its sharpest single-day declines in recent months.
• Crypto liquidations exceeded two billion dollars within twenty-four hours.
• Bitcoin recorded 614 million dollars in liquidations according to CoinGlass data.

The cryptocurrency market faced heavy losses on Tuesday as crypto liquidations exceeded $2 billion following sharp declines in Bitcoin and Ethereum. Prices fell across major assets, pushing the global crypto market capitalization to $3.4 trillion.

Crypto Liquidations Surge as Bitcoin Slides

Bitcoin dropped under $100,000 for the first time since May, intensifying concerns about weakened trader sentiment. The coin briefly hit $98,950 before rebounding slightly to $102,090 by press time.

The drop reflected a 5% daily loss and a 10% decline in one week. Bitcoin now trades nearly 20% below its all-time high of $126,080 set in early October.

Crypto liquidations linked to Bitcoin totaled about $614 million within 24 hours, according to CoinGlass data. Analysts said forced selling increased as leveraged traders faced mass position closures.

The report confirmed crypto liquidations reached multi-month highs on Tuesday.

Bitcoin’s losses coincided with broader weakness in U.S. equities. Both the Nasdaq and S&P 500 closed lower, pressured by declines in technology stocks.

Ethereum Suffers Sharp Decline

Ethereum recorded one of its largest daily drops in recent months as prices fell from $3,628 to $3,097. It later recovered slightly to $3,328 but remained 8% lower in 24 hours.

Crypto liquidations for Ethereum reached $655 million, the highest among all digital assets on Tuesday. Long positions accounted for most of these forced sales.

Market data showed traders had expected further price strength before the downturn triggered widespread sell orders. “High leverage created vulnerability during the latest market pullback,” one analyst noted.

Ethereum’s losses marked its weakest performance since July. The coin continues to trade nearly 9% below weekly highs despite minor intraday recovery.

Broader Market Sees Widespread Losses

Other major tokens such as XRP, Solana, and BNB also declined but experienced smaller drops. The total crypto liquidations across all assets hit $2.10 billion over 24 hours.

Out of the total, $1.68 billion came from long positions reflecting misplaced optimism. The liquidation scale, however, remained below the $19 billion peak in October.

The decline reflected increased selling pressure across exchanges as traders exited high-risk positions. Market observers linked the fall to broader financial stress.

Crypto liquidations surged as investors reduced exposure amid uncertain economic signals. U.S.-China trade tensions and liquidity concerns added to the volatility.

Reports indicated that uncertainty over a potential third U.S. interest rate cut in 2025 also weighed on sentiment. As a result, global markets faced synchronized declines.

The crypto market remains under pressure as volatility continues to test leveraged traders. As of press time, total crypto liquidations still exceeded $2 billion, showing persistent stress across exchanges.

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