Bitcoin (BTC) fell below $87,000 on Wednesday as selling pressure intensified across cryptocurrency markets.
The downturn triggered more than $584 million in liquidations over 24 hours.
Long positions accounted for 87% of total losses as leveraged traders were forced out.
Major altcoins including Ethereum (ETH), Solana (SOL) and XRP recorded steeper declines than Bitcoin.
What Happened
Cryptocurrency markets saw a sharp leverage reset with Bitcoin dropping from near $90,000 to around $86,000.
Ethereum declined more than 6% to approximately $2,815 during the selloff.
Data from Coinglass shows 181,893 traders were liquidated in the 24-hour period.
Bitcoin liquidations totaled $174.3 million while Ethereum recorded $189 million.
The largest single liquidation was an $11.58 million BTCUSDT position on Binance.
Binance, Bybit and Hyperliquid together accounted for nearly 75% of total liquidations.
Trading volumes remained elevated despite the downturn.
Bitcoin's 24-hour volume hovered near $50 billion while Ethereum saw more than $27 billion change hands.
Why It Matters
The Crypto Fear & Greed Index dropped to 17, firmly in extreme fear territory.
The reading reflects rising caution as traders react to falling prices and persistent volatility.
Bitcoin has declined nearly 30% from its October all-time high above $126,000.
Analysts point to thin liquidity and ongoing macro uncertainty as contributors to the speed of the move.
The liquidation event occurred without a major headline catalyst.
Traders say the wipeout reflects positioning excesses rather than fresh bearish news.
Heavy long exposure built into resistance before funding shifts triggered cascading forced selling.
Altcoins broadly lagged Bitcoin during the downturn.
*Solana recorded $34.5 million in liquidations while XRP and Dogecoin (DOGE) posted $14.5 million and $11.8 million respectively.
The concentration of losses in major assets suggests institutions and larger traders bore the brunt.
Momentum indicators on shorter timeframes show weak buying strength.
RSI readings remain below neutral 50 levels while MACD stays negative.
Despite the scale of liquidations, spot prices avoided a broader breakdown.
Market structure concerns persist as repeated long-heavy flushes point to deteriorating conditions.
Until leverage cools and spot-led demand returns, volatility is likely to remain skewed to the downside.