Crypto Market Turmoil: $287M Liquidated, Bitcoin Struggles Below $85,100

The cryptocurrency market is currently experiencing significant turmoil, with liquidations piling up across various digital assets. Within the last 24 hours, over $270 million in positions have been liquidated across the market, including $5.32 million from Bitcoin alone. The broader digital asset ecosystem is feeling the pressure, with Ethereum, Solana, XRP, and others facing heavy losses as well. Bitcoin, currently trading near $85,100, shows concerning signs on the daily chart. The asset continues to struggle below key moving averages, particularly the 200 EMA, which remains a formidable resistance barrier. A failure to reclaim this technical level may result in further downside. Compounding the bearish sentiment is a rise in trading volume during price drops — a classic signal of market capitulation.

Exchanges like Binance, Bybit, and OKX saw the brunt of the liquidations, indicating a marketwide sweep of leveraged positions. Notably, short positions made up the majority, suggesting many traders were caught off guard by sudden intraday spikes or misread consolidation patterns. One catalyst behind the sell-off could be global macroeconomic uncertainty. The introduction of new trade tariffs across key economies has sparked fears of declining international trade and growth. As tariffs disrupt supply chains and weigh on equity markets, high-risk assets like cryptocurrencies are feeling the shockwaves.

The liquidation heatmap shows Bitcoin leading the charge in losses, followed closely by Ethereum and Solana. The concentration of shorts being wiped out, especially on platforms like Bitmex and CoinEx, hints at both poor risk management and heightened volatility. The market's volatility has been exacerbated by the recent economic policies implemented by the U.S. administration. The imposition of high trade tariffs on key trading partners has led to a resetting of the post-World War II economic order, with countries responding with similar measures. This geopolitical tension has created an environment of uncertainty, driving investors towards more speculative and volatile assets like cryptocurrencies. Analysts believe that this trend is likely to continue, with cryptocurrencies leading the way in terms of price movements.

Looking ahead, if Bitcoin fails to hold above the $85,000 level, another wave of liquidations could be triggered. With sentiment already shaken and technicals weakening, caution should be the priority. Until the market in general stabilizes and macro fears ease, the crypto space remains vulnerable to steep corrections. The liquidation wave has resulted in a massive $287 million being wiped out, affecting major cryptocurrencies such as XRP and DOGE. The sell-off is not limited to Bitcoin but extends to other major cryptocurrencies as well. Ethereum, for instance, is touching new local lows, being 44% down in 2025. Two notable whale positions on the Maker exchange are close to a massive liquidation, further adding to the market's instability. The situation is particularly dire for Ethereum, as it faces significant selling pressure.