Bitcoin Tumbles Below $89K Amid Sector-Wide Bloodbath

BTC Sees Sharp Decline as Trading Volume Surges 178% in Market Sell-Off

​Bitcoin (BTC) plunged below $87,000 in afterhours trading but has since recovered slightly and is currently trading at $88,297, reflecting a 7.67% decrease from the previous close. Over the past 24 hours, BTC traded between $86,987 and $96,028, marking its lowest valuation since November 2024, according to data from Coinmarketcap.​

The top cryptocurrency’s 24-hour trading volume surged to $67.98 billion, a 178.52% increase, as bearish traders offloaded their holdings. Consequently, bitcoin’s market capitalization declined by 7.98%, now standing at $1.74 trillion. Despite these losses, BTC’s market dominance edged up by 0.24% to 62%, as alternative cryptocurrencies like ether (ETH) and solana (SOL) sustained more substantial losses.​

In the derivatives market, total BTC futures open interest decreased by 3.93% to $56.82 billion. Liquidation data reveals that $589.17 million was liquidated in the past 24 hours, with long positions accounting for $561.26 million and short positions for $27.92 million.​

Trump Tariffs and Bybit Hack

The recent downturn appears to have been influenced by macroeconomic factors and specific events. The aftermath of Bybit’s $1.46 billion hack continues to impact the crypto markets with almost all the top twenty cryptocurrencies shedding anywhere between 7% and 15% in value. Additionally, President Donald Trump’s announcement to implement tariffs on Canada and Mexico next month has introduced economic uncertainty, potentially affecting market sentiment.​

Given these developments, the short-term outlook for bitcoin remains cautious. Investors are advised to monitor macroeconomic indicators and market events closely, as they may continue to influence bitcoin’s price trajectory.