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Ethereum leads crypto liquidation spree with $617M losses in 24 hours

The cryptocurrency market suffered one of its worst liquidation events in history, wiping out over $2.24 billion in the last 24 hours amid escalating global trade tensions. Ethereum ( ETH ) took the hardest hit, leading the liquidation spree with $617.35 million, followed by Bitcoin ( BTC ) at $418.20 million. Other altcoins also faced sharp declines, with a combined $441.18 million in liquidations, amplifying the market’s downward spiral. Cryptocurrency liquidation heatmap. Source: CoinGlass Mass liquidations trigger market-wide panic According to data from CoinGlass , 746,711 traders were liquidated, marking one of the most severe wipeouts in crypto history. The largest single liquidation order was recorded on Binance’s ETH/BTC trading pair, valued at $25.64 million. Ethereum’s long positions suffered $478.93 million in liquidations, with short traders losing another $138.41 million. The scale of the selloff has drawn comparisons to some of the worst market crashes, now reportedly the largest liquidation event since the COVID-19 Black Thursday crash, the collapse of Terra ( LUNA ), and the collapse of FTX. $2.15b liquidated from the crypto market in the past 24 hours. Worst liquidation event in history in a single day. Worse than LUNA. Worse than FTX ($1.6b). pic.twitter.com/5yeQUtoHkR — Miles Deutscher (@milesdeutscher) February 3, 2025 The cascading liquidations swept across major exchanges , forcing leveraged traders to exit positions as prices fell sharply. OKX led with $28.87 million in liquidations, followed by Binance at $27.22 million and Bybit at $11.45 million. Trump’s tariff war triggers crypto selloff The cryptocurrency meltdown coincided with U.S. President Donald Trump’s announcement of new trade tariffs , imposing a 25% levy on Canadian and Mexican imports and a 10% tariff on Chinese goods. The move triggered widespread fears of a prolonged global trade war, sending financial markets into turmoil and prompting investors to offload risk assets, including cryptocurrencies. The fallout was immediate, with the global cryptocurrency market cap plunging to $3.25 trillion, down 8.8% in the past 24 hours. Bitcoin saw one of the steepest declines, dropping from highs above $105,000 on January 31 to $95,145 at press time, while Ethereum fell 16%, trading at $2,583 at press time. Ethereum one-day price chart. Source: Finbold Cryptocurrency market outlook With fears of a prolonged trade war escalating, investors remain cautious, uncertain whether Bitcoin can hold above $90,000 or face deeper losses. While a return of risk appetite could help Bitcoin and Ethereum recover lost ground, the sustained uncertainty keeps cryptocurrencies vulnerable to further sell-offs. Featured image via Shutterstock The post Ethereum leads crypto liquidation spree with $617M losses in 24 hours appeared first on Finbold . CoinTurk News

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Is Bitcoin headed below $90,000 amid Trump’s tariffs?

Late January and early February 2025 have proven turbulent for both the cryptocurrency and the stock market . China’s novel DeepSeek artificial intelligence ( AI ) model was the first to generate strong headwinds as it marked the entry of a new and powerful competitor to a sector otherwise dominated by American big tech. The other, more recent shock arose ‘on-shore’ as the financial markets reacted swiftly and violently to President Donald Trump’s tariff order that targeted partners and allies with more severe restrictions – 25% on trade with Mexico and Canada – and less severe on countries marked as ‘foreign adversaries – 10% on China. Bitcoin ( BTC ) experienced one of the strongest reactions as it plunged from highs above $105,000 on January 31 to its press time price of $95,759, though it also saw an even lower low earlier on February 3 when it collapsed below $93,000 before retracing from the support zone as buyers stepped in. BTC 1-week price chart. Source: FInbold Why Bitcoin might be headed below $90,000 The $10,000 price drop reignited the question of whether BTC is yet again headed for a collapse under $90,000. Indeed, the swift and violent reaction to the tariffs was primarily initiated by a sudden loss of appetite as the new tariffs constitute a venture into ‘uncharted’ territory for the 21st century. Many economists and experts have added to the concerns as they criticized the opening shots of what may turn into a global trade war as ill-considered and ultimately pointless. The fact that the U.S. is, so far, primarily targeting one long-standing ally and one nation with which it has close links has been especially contentious. Still, as evidenced by the recovery from the lows near $93,000, Bitcoin’s old support levels remain in place . Furthermore, since BTC is not dependent on supply chains that the tariffs might disrupt, there is no direct reason for the cryptocurrency to witness a major plunge, and there is a strong possibility it will, as soon as the contagion gives way, bounce back much like it did following DeepSeek’s emergence. On the other hand, should a loss of appetite for risk persist, Bitcoin’s recovery could prove short-lived, and should it plunge below $90,000, an even greater downturn might be in the cards, as multiple blockchain experts have previously pointed out that there are few decisive support levels within that zone. Finally, despite the initial round of tariffs likely having a somewhat limited effect and despite major institutions like Goldman Sachs (NYSE: GS ) anticipating they would be short-lived , they could have long-lasting consequences as it is doubtful if America’s allies – and adversaries – will approach trade with the superpower in the future in the same way as they have in the last few decades. Why the Monday morning bell might be critical for Bitcoin price Elsewhere, it is likely that Bitcoin’s next move – whether it be a continued downtrend or an upswing – will be decided by the broader state of the financial markets. Both the weekend trading and the extended session generally have lower volume meaning that fewer actors participate in the market and that each individual trade has a greater consequence. Should the regular trading session prove as shocking as the overnight one, BTC might truly be at risk of plunging below $90,000 and possibly even lower. Such a risk would be further compounded if the cryptocurrency loses its press time upward momentum and fails to reclaim the psychologically important $100,000 level by the time the morning bell rings. Featured image via Shutterstock The post Is Bitcoin headed below $90,000 amid Trump’s tariffs? appeared first on Finbold . CoinTurk News