Epic Crypto Crash: 720,000 Liquidations in 24 Hours

·

The cryptocurrency market experienced a dramatic and widespread selloff on February 3, sending shockwaves across global digital asset markets. With Bitcoin plunging below $92,000 and Ethereum dropping over 25%, investors faced one of the most intense volatility episodes of early 2025. The crash triggered massive liquidations, with more than 720,000 traders wiped out in just 24 hours.

This sudden downturn highlights the fragile sentiment in today’s crypto landscape — where rapid gains can quickly reverse amid macroeconomic pressures, geopolitical tensions, and shifts in tech-sector confidence.

Bitcoin Dives Below $91,500 Amid Intensifying Sell-Off

Bitcoin (BTC), the flagship cryptocurrency, dropped sharply in early Asian trading hours, reaching a low of **$91,130.30 per coin** — a decline of **6.83%** within 24 hours. According to CoinGlass data, BTC had been weakening since January 31, when it traded near $106,000. Over four consecutive down days, bullish momentum evaporated as support levels broke down.

At the time of reporting, Bitcoin was trading at approximately $92,899, still significantly off its recent highs. The repeated short-term flash crashes suggest heavy selling pressure from leveraged long positions and institutional exits.

👉 Discover how top traders navigate extreme market volatility and protect their portfolios.

Bitcoin's status as both a speculative asset and an emerging macro hedge has come under scrutiny during this correction. While some view dips as buying opportunities, others warn that overleveraged markets remain vulnerable to sudden shifts in risk appetite.

Altcoins Crushed: Ethereum Falls 25%, Major Tokens Drop Over 20%

The broader altcoin market suffered even more severe losses. Ethereum (ETH), the second-largest cryptocurrency by market cap, plunged by up to 25%, hitting a session low of $2,080.19 — its weakest level in nearly a year.

Other major digital assets followed suit:

These double-digit declines across the board reflect a broad-based flight from risk rather than isolated project failures. The collapse in investor confidence impacted everything from large-cap protocols to meme-inspired tokens.

$2.21 Billion Wiped Out: Massive Liquidation Event Rocks Markets

The scale of the carnage became evident in the derivatives market. In the past 24 hours alone:

The largest single liquidation occurred on Binance involving Ethereum futures, valued at $25.6 million — underscoring the dangers of high leverage in turbulent markets.

Such events are not uncommon during periods of extreme volatility, but the sheer size and speed of this drawdown have raised concerns about systemic risks within centralized and decentralized exchanges alike.

Market analysts point to overcrowded long positions and insufficient risk management as key contributors to the cascading effect seen across trading platforms.

What Triggered the Market Collapse?

While no single factor fully explains the crash, several interconnected forces appear to have aligned:

Geopolitical Tensions Fuel Risk-Off Sentiment

Reports indicate that renewed trade tensions — particularly surrounding former U.S. President Donald Trump’s proposed import tariffs on Canada, Mexico, and China — sparked a broader risk-off move in financial markets. Cryptocurrencies, often viewed as high-beta assets, reacted sharply to the uncertainty.

Tech Sector Weakness Spills Into Crypto

In late January, DeepSeek — a Chinese AI startup — surged in global app store rankings, surpassing ChatGPT in both China and the U.S. This unexpected rise intensified scrutiny over AI development costs and supply chain dependencies, particularly on chipmaker NVIDIA.

NVIDIA’s stock subsequently corrected sharply, wiping nearly $1 trillion off its market value. As AI and crypto sectors share overlapping investor bases and narrative themes (e.g., disruption, decentralization), weakness in one often spills into the other.

👉 Learn how to spot early warning signs before the next major market correction hits.

Despite a brief recovery earlier in the week, crypto markets failed to regain footing. Investor sentiment remained fragile, culminating in the February 3 selloff.

Core Keywords Driving Search Interest

As users seek answers in real time, certain search queries dominate:

These keywords reflect strong informational intent — users want clarity, context, and actionable insights during turbulence.

Frequently Asked Questions (FAQ)

Why did Bitcoin drop so suddenly?

Bitcoin’s sudden drop was driven by a combination of macroeconomic concerns (trade tensions), profit-taking after recent highs, and cascading liquidations in leveraged derivatives markets. When large numbers of traders use margin, small price moves can trigger automatic sell-offs that accelerate declines.

How many people got liquidated in this crash?

Over 720,000 traders were liquidated within 24 hours, according to CoinGlass. This includes both long and short positions, though longs accounted for the majority ($1.87 billion) due to the prevailing bullish bias before the crash.

Is this crash worse than previous ones?

While painful for affected traders, this event is not unprecedented in scale compared to historical crashes like those in 2018 or 2022. However, its speed and concentration over a single day make it notable — especially given the high number of leveraged participants involved.

Could AI developments really affect crypto prices?

Yes — indirectly. AI and crypto both attract speculative capital and are often grouped under "future tech" investments. News affecting AI firms like NVIDIA can shift investor sentiment across tech sectors. Additionally, narratives around computing power, energy use, and decentralization create thematic links between AI and blockchain ecosystems.

What should I do if my position is close to liquidation?

Act immediately. Reduce leverage, set stop-loss orders, or add margin if possible. Waiting too long can result in automatic liquidation at unfavorable prices. Platforms like OKX offer real-time margin monitoring tools to help manage exposure.

Will crypto prices recover soon?

Recovery depends on broader market conditions, including macroeconomic policy, investor sentiment, and on-chain fundamentals. Historically, crypto markets have rebounded after sharp corrections — but timing is uncertain. Patience and disciplined risk management are essential.

👉 Stay ahead with real-time alerts and advanced risk management tools designed for volatile markets.

Final Thoughts: Navigating Volatility With Discipline

This episode serves as a stark reminder: while cryptocurrency offers transformative potential, it also carries significant risk — especially when leverage amplifies market swings.

Traders must prioritize capital preservation through diversified exposure, conservative use of margin, and continuous monitoring of global macro trends.

For long-term investors, sharp corrections can present entry opportunities — but only when approached with research, patience, and emotional discipline.

As the digital asset ecosystem matures, understanding not just technology but also market psychology and macro linkages will become increasingly vital for success.