Crypto Traders Betting on Higher Prices Just Got Wrecked. It's the Worst Liquidation Event in History

Over $2.2B in liquidations hit the market as Bitcoin fell to $91K and Ethereum crashed 20% in 24 hours.

Crypto traders betting on higher prices faced massive losses as a sharp market downturn triggered a record-breaking liquidation event.

Over $2.2 billion in futures positions were liquidated in the past 24 hours, marking the highest single-day liquidation volume in history. This surpasses even the losses incurred during the Terra (LUNA) and FTX (FTT) downfalls.

According to CoinGlass, futures traders betting on rising prices faced the brunt of these liquidations, with long positions liquidated to the tune of $1.87 billion, compared to $345 million in short positions as of Feb. 3.

This market crash was sparked by panic over Trump’s newly imposed tariffs on Canada, Mexico, and China, leading to a chaotic sell-off.

Ethereum (ETH) bore the brunt of these liquidations, with futures traders losing over $600 million as ETH prices crashed by 20% in 24 hours.

Meanwhile, Bitcoin (BTC) prices fell by 6.5% in a single day, with liquidations amounting to $400 million.

As prices continued to plummet, the impact on altcoins was even more severe, with most in the top 100 witnessing declines ranging from 15% to 30% in just 24 hours. This amplified the panic throughout the crypto market.

The high leverage employed in the system exacerbated the situation, triggering a snowball effect of liquidations as prices dropped.

With the market already fragile from recent volatility, it couldn’t absorb the selling pressure quickly enough, leading to a spiraling decline.

One analyst described this as the worst altcoin collapse since the Covid crash, and cautioned against attempting to “revenge trade” with leverage, emphasizing that patience is key during such market downturns.