Bitcoin suddenly drops below $87,500, triggering over $250 million liquidation

Key Takeaways

• Over $250 million was liquidated in the crypto market during a rapid price drop in the past hour.
• Major cryptocurrencies like Bitcoin and Ethereum experienced sharp declines, triggering margin calls.

The cryptocurrency market experienced a sharp selloff, triggering over $250 million in liquidations in the past hour, as Bitcoin, Ethereum, and other digital assets posted sudden price drops. Bitcoin fell below $87,500 after climbing close to $92,000 earlier.

The liquidation wave primarily affected long positions in Bitcoin and Ethereum, with traders facing cascading margin calls as prices declined rapidly across major exchanges. Bitcoin, which serves as a decentralized digital currency and store of value, led the downturn alongside Ethereum, the blockchain platform that powers smart contracts and decentralized applications.

Both centralized and decentralized exchanges saw heightened liquidation activity as market volatility intensified. Long positions in the two largest cryptocurrencies proved particularly vulnerable to the selloff, contributing to overall liquidation volume.

The crypto market has seen similar liquidation events in recent weeks, with sudden price movements triggering widespread position wipeouts as leveraged traders get forced out of their holdings when prices move against them.