Bitcoin Price Suddenly Plunges Below $88,000 as Hourly Liquidations Explode

More than $130 million in leveraged positions have been wiped out in the last 60 minutes alone.

After a relatively quiet weekend in which neither buyers nor sellers were able to regain control, the price of BTC is once again heading south to a new multi-day low well below $88,000.

The altcoins are in a similar situation, with ETH falling below $2,900 and SOL falling more than 2.5% in just an hour.

BREAKING: Bitcoin falls below $88,000 as $60 million in leveraged longs liquidates in 30 minutes.

A government shutdown is now expected and President Trump has threatened 100% tariffs on Canada.

US stock futures open in less than seven hours. pic.twitter.com/40GxrMdRTI

— The Kobeissi Letter (@KobeissiLetter) January 25, 2026

As the Kobeissi Letter analysts pointed out, the most likely reasons behind the continued corrections are the expected shutdown of the US government after the Minneapolis shooting, which would now be the second during Trump’s term, and the tariffs that the POTUS threatened to impose on Canada.

As reported yesterday, he warned that he could impose a 100% tariff on his northern neighbor if the country chooses to strike a major deal with China.

Similar to the events that took place this past weekend, BTC initially remained relatively stable but began to collapse as the opening of the futures markets approached.

This time, BTC fell to a five-day low of $87,500 (provisional), after being rejected at $89,000 earlier today. The past hour was violent for most altcoins, with some, such as SUI, SOL, ARB, PEPE, ENA, and ADA, dropping more than 2%.

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Ethereum has lost 1.5% of its value in the last 60 minutes alone and is now struggling well below $2,900. The total value of the destroyed positions over the past day is $250 million, but more than 50% of that amount came in the past hour ($131 million, according to CoinGlass data).

More than 130,000 traders went bankrupt every day, with the largest liquidated position happening on Hyperliquid and worth $6.3 million.