Bitcoin plunges below $88,000 with $100 million liquidated in one hour

Yesterday 13:50

By: Dakir Madiha

Bitcoin plunges below $88,000 with $100 million liquidated in one hour

Bitcoin dropped under $88,000 on Sunday, sparking over $100 million in futures contract liquidations across cryptocurrency markets in just one hour amid fresh selling pressure. This sharp reversal followed the digital asset's weekly high above $92,000 on January 19. Data from derivatives analytics platforms reveal between $114 million and $135 million in forced position closures on major exchanges like Binance, Bybit, and OKX during that critical period, with long positions, betting on price rises, accounting for about $78 million, mostly in Bitcoin perpetual futures. Total 24-hour liquidations reached around $236 million, signaling sustained strain on leveraged traders.

The liquidation cascade hit as Bitcoin fell nearly 4 percent in a turbulent hour, bottoming at $87,471 before stabilizing. High funding rates on perpetual futures had hinted at overcrowded bullish bets, leaving the market vulnerable to sudden downside moves. Market sentiment soured, with the Fear & Greed Index dipping to 25, firmly in "fear" territory. Global cryptocurrency market capitalization shrank to about $3 trillion in the broader sell-off, which also hammered major altcoins like Ethereum, Solana, and XRP.

This episode caps a volatile stretch for crypto markets. On January 20, over 182,000 traders faced liquidations in 24 hours, with combined losses exceeding $1.08 billion per CoinGlass data. Technical analysts point to a failed push past the $95,938 resistance as the trigger for the current downtrend; without reversal signals, Bitcoin may test support at $86,561, with some forecasts eyeing a drop toward $80,000.

Despite weekend selling, some major holders remain steadfast. Michael Saylor, executive chairman of Strategy (formerly MicroStrategy), which holds about 709,715 BTC worth over $62 billion, hinted Sunday at potential further purchases. Liquidity concentration on a few dominant platforms amplifies volatility in such events, sector analysts note. Traders using over 20x leverage hit immediate liquidation thresholds as prices swung against them, fueling a feedback loop that intensified spot market sales.