Bitcoin price fell below $88,000 late Tuesday as crypto liquidations accelerated. The move erased Bitcoin’s early 2026 gains, based on the figures in the report. Bitcoin traded as low as $87,790 on Coinbase, its lowest level since Dec. 31.
The report said crypto liquidations reached more than $1.8 billion over 48 hours. It also said about 93% of those liquidations were long positions, based on Coinglass data. That split showed traders got forced out during the drop.
Crypto markets also sold off. The report said the crypto market cap fell by about $225 billion to about $3.08 trillion. It described the move as the biggest crypto market cap decline since mid November.
Bitcoin Liquidations Surge as Coinglass Data Shows Longs Get Hit
Bitcoin liquidations built as price slid through key levels. The report tied the $1.8 billion figure to a 48 hour window. It also stressed that long positions made up about 93% of the wipeout, citing Coinglass data.
Bitcoin price also moved below the 50 day EMA, according to the report. That level had acted as support during the earlier rally. The TradingView chart cited in the report framed the break as a shift in short term structure.
The report also put the weekly slide near 10%. It said Bitcoin price fell about 10% from its year to date high just under $98,000. As a result, January gains disappeared.
Reuters Report Links “Sell America Trade” to Tariff Threats and Market Stress
A Reuters report described renewed tariff threats from US President Donald Trump. It said those headlines brought back the so called Sell America trade seen after last April’s tariff announcement. That framing linked the price drop to broader risk moves.
Still, the report did not treat tariffs as the only trigger. It said other forces likely pushed volatility at the same time. That context mattered because Bitcoin price moved with other risk assets during the session.
In the same flow, the report described shifting fund flows. It said money moved away from US assets as tensions rose. That language connected Bitcoin price weakness to wider positioning, not only crypto specific factors.
Japanese Bond Yields Jump and Carry Trade Unwind Tightens Liquidity
The report highlighted Japan’s bond market as another pressure point. Dan Tapiero, founder and CEO of 50T Funds, said the wipeout came from “complete annihilation in Japanese bond markets infecting all markets right now.” The quote linked Bitcoin price weakness to stress beyond crypto.
US Treasury Secretary Scott Bessent also pointed to Japan. He said:
“I believe markets are going down because the Japanese 10 year bond market had a six standard deviation move over the past two days.”
He added:
“This has nothing to do with Greenland.”
The report presented those remarks as part of the same liquidity narrative.
The Reuters report cited sharp moves in Japanese bond yields. It said 10 year yields rose almost 19 basis points in two days. It also said 30 year yields logged their biggest daily jump since 2003. In the report, Jeff Ko, chief analyst at CoinEx Research, said the surge threatened to speed up a carry trade unwind and tighten “a critical source of global liquidity.” He added that Bitcoin faced a tug of war because liquidity conditions drove selling even as some compare it with hard assets like gold.
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: January 21, 2026 • 🕓 Last updated: January 21, 2026
