CMC News

$BTC Wipes Out 2026 Gains as $1.8B in Positions Liquidated

Bitcoin dropped below $88,000 amid Japanese bond market turmoil, with over $1.8 billion in leveraged positions liquidated across 48 hours of intense selling pressure.

$BTC fell 4% Tuesday, triggering massive #liquidations as the asset reached $87,790 in late trading, marking its lowest level since Dec. 31. Coinglass reported that around 93% of liquidated positions over the past 48 hours were long bets on rising prices.

The asset has wiped out year-to-date gains and sits 10% below its 2026 high of just under $98,000. $BTC also fell below the 50-day exponential moving average, which served as support during the recent rally.

#Cryptocurrency markets collectively shed $225 billion in market capitalization, their largest decline since mid-November. Total #capitalization now stands at $3.08 trillion following the sustained selling pressure.

Dan Tapiero, founder and CEO of 50T Funds, said the wipeout was caused by “complete annihilation in Japanese bond markets infecting all markets.” Tapiero predicted more gains for gold, which hit an all-time high of $4,835 per ounce on Tuesday, with $BTC to follow.

Japanese 10-year government bond yields surged almost 19 basis points in two days, while 30-year yields posted their biggest daily jump since 2003. Investors braced for increased government spending and reduced #liquidity, Reuters reported.

Jeff Ko, chief analyst at CoinEx Research, said the surge in Japanese bonds was driven by fiscal uncertainty and market #volatility ahead of the snap election. This threatens to accelerate the carry trade unwind, further tightening a critical source of global liquidity.

Fund flows are shifting as market conditions evolve, Ko continued. “$BTC finds itself caught in a tug-of-war,” sharing characteristics with hard assets like gold while being sold off due to heightened sensitivity to liquidity conditions.