Over 730,000 traders were liquidated as crypto markets plunged. Ether led the sell-off, with analysts comparing the impact to the FTX collapse and COVID-19 crash.
Mass Liquidations Triggered by Market Turmoil
In the past 24 hours, the crypto market saw $2.24 billion in liquidations, driven by geopolitical tensions from a global tariff war. Ether (ETH) led the downturn, with liquidations totaling $618 million.
A staggering 730,000 traders faced losses, with the largest single liquidation occurring on Binance, where an ETH/BTC trade worth $25.6 million was wiped out, according to CoinGlass.
Exchanges See Heavy Liquidations
Binance accounted for 36.8% of all liquidations due to its large user base. Other major exchanges affected included OKX, Bybit, Gate.io, and HTX.
🚨 Key Takeaways:
- Long positions suffered the most, with $1.88 billion lost (84% of total liquidations).
- Traders were anticipating a bull run, but the market went the other way.
- Bitcoin ETFs attracted $5 billion in January, signaling continued investor interest.
Geopolitical Tensions Crush Crypto Markets
The market sell-off intensified after former U.S. President Donald Trump announced new tariffs on China, Canada, and Mexico. The impact was severe, with top altcoins like ETH and Cardano losing double-digit percentages within an hour.
Joe Consorti, head of growth at Theya, compared this event to previous major crashes, stating:
Investor Sentiment Turns to Fear – Buying Opportunity?
According to Alternative.me, the crypto market sentiment now stands at “fear”. Historically, fear-driven markets have presented buying opportunities for investors willing to take risks.
With Bitcoin ETFs gaining traction, some believe the market could bounce back once the uncertainty clears. The question is: Will crypto investors see this as a chance to buy the dip?
