Bitcoin’s price has sharply declined below $88,000, triggering a surge in liquidations that erased more than $130 million in leveraged positions within just one hour.
Following a calm weekend where neither buyers nor sellers took control, BTC resumed its downward move, reaching a new multi day low well under $88,000. Altcoins followed the same trend, with Ethereum falling below $2,900 and Solana dropping more than 2.5 percent in a single hour.
According to analysts at the Kobeissi Letter, the correction is likely driven by macro uncertainty. Key factors include fears of a potential US government shutdown following the Minneapolis shooting and renewed tariff threats from President Trump toward Canada. As previously reported, Trump warned of a possible 100 percent tariff if Canada proceeds with a major agreement with China.
Similar to last weekend, Bitcoin initially held steady but began to weaken as futures markets approached their opening. After failing to break above $89,000 earlier in the day, BTC fell to a five day low near $87,500.
The past hour has been especially brutal for altcoins. Tokens such as SUI, SOL, ARB, PEPE, ENA, and ADA dropped by more than 2 percent. Ethereum alone lost 1.5 percent in the last hour and remains stuck well below $2,900.
Total liquidations over the past 24 hours reached $250 million, with more than half occurring in the most recent hour. Data from CoinGlass shows $131 million in positions were wiped out during that period. Over 130,000 traders were liquidated in a single day, with the largest individual position worth $6.3 million on Hyperliquid.
