Bitcoin Price Declines to $88K Triggering Over $580M in Liquidations

Bitcoin fell sharply on Tuesday morning, slipping below the $90,000 threshold touching $88,400. The drop marked a decline of more than 6% over recent days as broader risk assets faced renewed selling pressure across global markets. The leading cryptocurrency extended losses that began over the weekend.

The downward momentum gained strength after President Trump announced new tariffs and warned of potential trade conflict with European nations resisting his administration’s interest in Greenland. These developments added fresh uncertainty to financial markets already navigating geopolitical tensions. Risk-sensitive assets, including cryptocurrencies, reacted quickly to the shifting sentiment.

Market Liquidations and Altcoin Performance

The swift price decline triggered widespread liquidations in the derivatives market, with more than $580 million in positions wiped out over the past 24 hours. Roughly $150 million of those liquidations occurred in the final hour of heavy selling. Long positions in Bitcoin and Ethereum accounted for the largest share of forced closures as leveraged bets unraveled.

Total market value contracted by about 3%, settling near $3.1 trillion according to tracking data. Major alternative coins followed Bitcoin lower throughout the session. Ethereum traded close to $3,000, Solana held around $127, and XRP changed hands near $1.91.

Monero recorded the sharpest percentage loss among established assets, sliding more than 11% to approximately $538. The privacy coin has now retreated over 32% from the all-time high near $800 it reached just last week. Hyperliquid also faced notable pressure, dropping 7% over the same period to trade near $22.

Spot Bitcoin exchange-traded funds experienced significant net outflows of $681 million in early January 2026. Those withdrawals signal cooling institutional demand at a time when direct selling has added to downward pressure. The combination of tariff announcements and the ongoing US-EU disagreement over Greenland has weighed particularly heavily on assets perceived as higher risk.

Cryptocurrencies have increasingly moved in tandem with traditional equity markets during periods of macroeconomic uncertainty. The latest tariff threats amplified concerns about global trade flows and economic growth. Investors appear to be reducing exposure to volatile assets while monitoring developments in Washington and Europe.