Crypto: $1.8b Liquidated In 48 Hours As Bitcoin Wipes Out 2026 Gains

Bitcoin erased its gains for the month and fell below $88,000 as crypto markets shed $225 billion, with analysts linking the crash to a “sell America” trade and Japanese bond market woes.

Bitcoin dropped another 4% on Tuesday, with more than $1.8 billion liquidated over the past 48 hours amid tariff threats from US President Donald Trump and Japanese bond turmoil.

Bitcoin (BTC) fell to $87,790 on Coinbase in late trading on Tuesday, its lowest level since Dec. 31. Over the past 48 hours, more than $1.8 billion has been liquidated, around 93% of them long positions, reported Coinglass.

The asset has now wiped out all gains made so far this year and is down 10% from its year-to-date high of just under $98,000. It has also fallen below the 50-day exponential moving average (EMA), which served as support in the recent rally.

Crypto markets have collectively shed $225 billion in market capitalization, their largest decline since mid-November, with total capitalization now at $3.08 trillion.

Trump’s renewed tariff threats prompted a repeat of the so-called “Sell America” trade that emerged after last April’s tariff announcement, reported Reuters.

However, while many attribute the market volatility to Trump’s trade war escalation, there could be other factors at play.

Related: Bitcoin institutional demand remains strong: CryptoQuant

Founder and CEO of 50T Funds, Dan Tapiero, said the “wipeout” was caused by “complete annihilation in Japanese bond markets infecting all markets right now.”

Tapiero predicted more gains for gold, which hit an all-time high of $4,835 per ounce on Tuesday, with Bitcoin to follow.

Source: CoinTelegraph