$1.8B Liquidated as Global Sell-Off Hits Bitcoin and Stocks

A violent “risk-off” wave has erased over $1.8 billion in crypto liquidations and wiped $1.3 trillion from U.S. equities in just 48 hours. The sell-off, dubbed the “Sell America” trade by Wall Street, was triggered by a dual-threat: President Donald Trump’s aggressive 10% tariff ultimatum over the Greenland acquisition and a historic collapse in the Japanese Government Bond (JGB) market.

As Bitcoin slipped below $88,000 for the first time in 2026, investors fled to traditional gold, which surged toward a record $4,700 per ounce.

Out of $1.8 billion in crypto liquidations, roughly 93% were long positions, according to data from Coinglass. Most of these were traders betting on prices rising, highlighting intense selling pressure.

According to CoinMarketCap data, Bitcoin was down about 2.3% over the past 24 hours, trading near $89,473. It is now about 10% below its recent high near $98,000 and has fallen below its 50-day moving average, a key level that traders watch to gauge short-term momentum.

A $1.3T tech bloodbath

The sell-off spread well beyond crypto. On January 20, US stock markets plunged, wiping out about $1.3 trillion in value in a single session as investors rushed to cut risk. The S&P 500 declined 2.1% in its worst day since last October. Nasdaq was down 2.4%, while Dow Jones Industrial Average declined 1.8%.

Technology was the worst-performing sector, with the top stocks such as Nvidia and Apple tanking. The traders attributed the fall to trade tensions and a tighter financial environment.

Markets were rattled by Trump’s plans to impose 10% tariffs on goods from countries such as Denmark, the UK, France, and Germany. He said the tariffs could rise to 25% by June 1 unless a deal is reached for the US to purchase Greenland.

European leaders criticized the move and warned of countermeasures, raising fears of another global trade conflict and disruptions to supply chains.

Japan’s bond market ‘avalanche’

While tariffs grabbed the headlines, macro analysts point to a more dangerous systemic issue: the end of cheap Yen liquidity.

Japan’s 10-year bond yield surged to 1.86%, while 30-year yields hit levels not seen since the series began in 1999. Bond yield rose to nearly 19 basis points, as investors reacted to higher government spending and reduced liquidity.

For decades, investors borrowed cheap yen to buy risk assets like Bitcoin. With Japanese yields rising, that “liquidity machine” is breaking, forcing massive liquidations of leveraged crypto positions.

US Treasury Secretary Scott Bessent said the market drop is due to these extreme moves in Japan’s bonds, “nothing to do with Greenland.” Similarly, Dan Tapiero, founder and CEO of 50T Funds, described the sell-off as a result of turmoil in Japanese bonds spilling over into global markets.

The turmoil in Japan’s bond market has been a major factor behind recent volatility, affecting not just stocks but also cryptocurrencies like Bitcoin, while safer assets like gold continue to gain.

The safe haven divergence: Gold vs. Bitcoin

The 48-hour crash has reignited the debate over Bitcoin’s status as “Digital Gold.” While Bitcoin acted as a high-beta risk asset (dropping 10% from its $98k high), physical gold decoupled entirely.

Gold surged to a new all-time high, briefly approaching $4,700 per ounce, as investors moved into safer assets amid geopolitical tension and macro uncertainty. Gold has risen about 41% since mid-2025, reflecting its appeal as a stable store of value.

Bitcoin, in contrast, is under pressure. Despite its “digital gold” image, it is not acting as a safe haven and has faced selling as investors move away from riskier assets. The contrast highlights the larger shift toward traditional safe-haven assets in times of uncertainty.

Also Read: U.S. to Add Seized Bitcoin to National Digital Asset Reserve

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