Bitcoin Drops to $89K, $1B Longs Liquidated

[umair]

Bitcoin’s price recently dipped to around $89,000, sparking a major liquidation event in the derivatives market that wiped out roughly $1.09 billion in leveraged positions over the last 24 hours. According to CoinDesk, data from CoinGlass shows that nearly 92 % of the liquidations were long positions, meaning traders betting on higher prices were hit hardest when the market reversed.

This sharp move highlights how crowded bullish positioning had become — many traders were heavily leveraged expecting continued upside. Once BTC broke key support levels, those positions were force-closed by exchanges, amplifying the selling pressure. For context, about 183,000 traders were liquidated in this single squeeze, underlining just how much leverage was built into recent bullish bets.

The drop below $89,000 also reflected broader market stress. Other reports note that risk-off sentiment has been growing, with events like tariff news and macro uncertainty contributing to selling in risk assets, including crypto. Analysts tracking liquidation data had already warned of elevated leverage in the market, making prices vulnerable to steep corrections.

In markets like crypto, liquidations don’t just represent losses for those traders — they can accelerate price moves and shift sentiment. When long positions are flushed, it often leads to short-term overshoots to the downside before buyers step in. Some traders view this kind of capitulation as a reset that clears excess leverage and sets the stage for future moves, while others see it as confirmation of weakening bullish conviction.

Going forward, many participants will be watching key support zones like $85,000–$88,000 and broader macro catalysts — such as economic data and rate expectations — that could influence BTC’s next directional leg.