Bitcoin Slips Below $56K Amid Tech Sell-Off and Asian Market Jitters

Bitcoin experienced a sharp decline late Tuesday, plunging to $55,770, marking a sudden downturn that coincided with the opening of Asian stock markets.

This drop followed a tough day for U.S. stocks, where tech giant Nvidia contributed to a 600-point loss in the Dow Jones Industrial Average. Across the Pacific, Japan's Nikkei index began its trading day with a staggering 1,000-point drop.

While Bitcoin has managed a slight recovery, trading at $56,630 at the time of writing, it still reflects a nearly 4% loss for the day.

The Asian markets are poised for a rough day, with Nvidia's overnight drop marking the largest market cap reduction ever seen. The Nikkei is expected to open significantly lower, reflecting a 1,000-point loss. This downturn triggered a surge in liquidations, with $95 million liquidated in just an hour, $91 million of which were long positions betting on price increases. This adds to the $169 million in long positions wiped out over the previous 24 hours, as reported by CoinGlass. The market saw red across the board, with Solana (SOL) down 6.4% to $125, XRP falling 3.1% to $0.55, and Dogecoin (DOGE) dropping 5% to $0.094.