Bitcoin fell from above $91,000 to $88,900 in the past hour, wiping out more than $200 million in leveraged long positions across the crypto market, according to data from Coinglass and CoinGecko.

The sharp drop forced automatic closure of positions where traders had borrowed funds to bet on rising Bitcoin prices. When prices fall below certain thresholds, exchanges automatically sell these positions to prevent further losses.

Bitcoin has extended recent losses into bear market territory, with ongoing fluctuations influenced by macroeconomic factors.

The decline comes after Bitcoin suffered its worst November in seven years, closing the month with an 18% drop. The digital asset hit a low of $82,100 before resurging to above $92,00 earlier this week.