Bitcoin Plunge Below $90K Wipes $478M in Leveraged Positions

The new year’s crypto market enthusiasm has evaporated as Bitcoin’s sustained downtrend erased most year-to-date gains. According to CoinGecko data, Bitcoin is down 2.4% over 24 hours, trading at $89,881, while the total crypto market capitalization has fallen 2.6% from yesterday’s $3.305 trillion. This downward move triggered over $477 million in total liquidations within a day, with data from CoinGlass revealing that bullish traders bore the brunt—long positions accounted for over 90% of the wiped-out capital.

The correction was not isolated to Bitcoin. Major altcoins followed suit, with Ethereum and XRP falling 3.9% and 7.6%, respectively. The sell-off was particularly harsh for meme coins that had enjoyed explosive growth. Pepe and Bonk, which had nearly doubled in value in the first week of 2026, are now down 6.6% and 8%. Other altcoins like Dogecoin and ZCash, tagged for their earlier double-digit gains, also tanked, illustrating a broad-based risk-off move across the crypto market.

Experts from firms like CEX.IO and SynFutures, key entities in the analysis, identify multiple drivers behind the slump. Illia Otychenko, Lead Analyst at CEX.IO, told Decrypt that the drop reflects “fading momentum from the early-year boost.” He noted that fresh 2026 allocations and supportive geopolitical headlines provided initial lift but proved insufficient to sustain the rally.

Wenny Cai, COO at SynFutures, highlighted a broader risk-off sentiment permeating global markets. “Investors are awaiting key macro data like U.S. jobs reports, which have kept risk appetite muted,” she explained to Decrypt. This cautious stance ahead of pivotal U.S. economic data has translated into Bitcoin struggling to hold above $90,000, with trading ranges hovering in the low-$90,000s and frequent dips below that psychological level. This sentiment is quantified on the prediction market Myriad, owned by Decrypt’s parent company Dastan, where users assign only a 24.5% chance that Bitcoin hits a new all-time high before July.

Compounding the macro pressure are crypto-specific outflows. Both analysts pointed to renewed spot Bitcoin ETF outflows as a critical short-term headwind. Otychenko highlighted a significant $243 million outflow from U.S. Bitcoin ETFs, which reduced immediate buying pressure. Cai concurred, noting that while ETF flows are a structural positive long-term, “they have recently acted as a headwind in the short term.”

A recurring theme from analysts is the state of market liquidity, which is amplifying price movements. Otychenko stated that “crypto market liquidity remains thin, resulting in choppy price action.” Cai from SynFutures elaborated, noting conditions are “thinner than that in prior bull phases.” This lack of depth means that even modest selling or buying pressure can lead to exaggerated price swings, explaining the severity of the drop despite what analysts suggest is still-intact fundamental demand for assets like Bitcoin.

The immediate outlook hinges on upcoming economic catalysts. Otychenko suggested the market’s perspective could improve if Bitcoin bounces following the release of the U.S. jobs data. For now, the combination of fading early-year momentum, a pre-data risk-off mood, ETF outflows, and thin liquidity has created a perfect storm for leveraged bulls. The $478 million liquidation event serves as a stark reminder of the volatility inherent in crypto markets, even for major assets like BTC, ETH, and XRP, and especially for the more speculative altcoins and meme coins like DOGE, BONK, PEPE, and ZEC.