{"id":20850,"date":"2025-02-03T10:30:39","date_gmt":"2025-02-03T08:30:39","guid":{"rendered":"https:\/\/forklog.com\/en\/crypto-suffers-its-biggest-liquidation-on-record\/"},"modified":"2025-02-03T10:30:39","modified_gmt":"2025-02-03T08:30:39","slug":"crypto-suffers-its-biggest-liquidation-on-record","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/crypto-suffers-its-biggest-liquidation-on-record\/","title":{"rendered":"Crypto suffers its biggest liquidation on record"},"content":{"rendered":"<p>On February 3, after Donald Trump\u2019s remarks about aggressive tariffs on imports into the United States, total crypto market capitalisation <a href=\"https:\/\/www.coingecko.com\/\">fell by 11.7%<\/a> to $3.16 trillion.<\/p>\n<p>American authorities <a href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/02\/fact-sheet-president-donald-j-trump-imposes-tariffs-on-imports-from-canada-mexico-and-china\/\">are imposing<\/a> additional 25% levies on imports from Canada and Mexico, and 10% on goods from China. Trump also <a href=\"https:\/\/x.com\/unusual_whales\/status\/1886127698092740676\">said<\/a> he intends to take similar steps on trade with the EU.<\/p>\n<p>Bitcoin\u2019s price extended its decline, hitting a low of $91,281. At the time of writing the leading cryptocurrency trades near $94,500 with a market capitalisation of $1.87 trillion.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXc-4pEjP7bHO_s7sDK9MDKrStfjse7VHvYj_cm2_jP-0Fd-P-JinzQ_wjVhJhz6-XtgvXRrzF28Uhwav6-Ht0zpxuPTDLJKV726dMW7ONHcHw5PHD-A81xffSLtOIZMD5Ztk-qcWg?key=apYFZwE_DQ8IkUYgmZ8xFHV6\" alt=\"\u041a\u0440\u0438\u043f\u0442\u043e\u0440\u044b\u043d\u043e\u043a \u0441\u0442\u043e\u043b\u043a\u043d\u0443\u043b\u0441\u044f \u0441 \u043c\u0430\u0441\u0448\u0442\u0430\u0431\u043d\u0435\u0439\u0448\u0435\u0439 \u043b\u0438\u043a\u0432\u0438\u0434\u0430\u0446\u0438\u0435\u0439 \u0432 \u0438\u0441\u0442\u043e\u0440\u0438\u0438\"\/><figcaption class=\"wp-element-caption\">15-minute chart of BTC\/USD on Binance. Data: <a href=\"https:\/\/www.tradingview.com\/chart\/?symbol=BINANCE%3ABTCUSD\">TradingView<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Altcoin rout and rising bitcoin dominance<\/h2>\n<p>Ethereum fell below a three-month low of $2400. After a modest rebound it trades around $2600.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXcdp-hIpTVNu68Of5XevWTxROW8OsPgqpVqEntRxznyL4-PDz6aAQoLrEZEKwZvOEeMNqGdO3-KOEz0hYt_EITBSMvEURCQTYVrKZt-GqpWyJtEPKAEGyFsqALSZypAWn3Owrfv?key=apYFZwE_DQ8IkUYgmZ8xFHV6\" alt=\"\u041a\u0440\u0438\u043f\u0442\u043e\u0440\u044b\u043d\u043e\u043a \u0441\u0442\u043e\u043b\u043a\u043d\u0443\u043b\u0441\u044f \u0441 \u043c\u0430\u0441\u0448\u0442\u0430\u0431\u043d\u0435\u0439\u0448\u0435\u0439 \u043b\u0438\u043a\u0432\u0438\u0434\u0430\u0446\u0438\u0435\u0439 \u0432 \u0438\u0441\u0442\u043e\u0440\u0438\u0438\"\/><figcaption class=\"wp-element-caption\">15-minute chart of ETH\/USD on Binance: <a href=\"https:\/\/www.tradingview.com\/chart\/?symbol=BINANCE%3AETHUSD\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>XRP from Ripple dropped below $2, shedding more than 20% of its market value within hours. At the time of writing the price has recovered above $2.5.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXdRMdRYmPAgyaOs7jXJWYlWf8rhVOzQz1h7fGxcK4EPeTFDU5zwalhL7DztBK-WcIYHiYVDwVnnCTyw09JtCIFo-Mxve6fzBeYOB45umpnCJTYxdPaxkAH6GG9UyFNG2RUttn-G_Q?key=apYFZwE_DQ8IkUYgmZ8xFHV6\" alt=\"\u041a\u0440\u0438\u043f\u0442\u043e\u0440\u044b\u043d\u043e\u043a \u0441\u0442\u043e\u043b\u043a\u043d\u0443\u043b\u0441\u044f \u0441 \u043c\u0430\u0441\u0448\u0442\u0430\u0431\u043d\u0435\u0439\u0448\u0435\u0439 \u043b\u0438\u043a\u0432\u0438\u0434\u0430\u0446\u0438\u0435\u0439 \u0432 \u0438\u0441\u0442\u043e\u0440\u0438\u0438\"\/><figcaption class=\"wp-element-caption\">15-minute chart of XRP\/USDT on Binance: <a href=\"https:\/\/www.tradingview.com\/chart\/?symbol=BINANCE%3AXRPUSDT\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>Heavy drawdowns hit many large altcoins\u2014ADA (about 30%), AVAX (25%), DOGE (24%) and LINK (23%) <a href=\"https:\/\/www.coingecko.com\/\">lost<\/a> over 20% of market capitalisation.<\/p>\n<p>Amid the market-wide slide, the crypto portfolio of the Trump-linked project <a href=\"https:\/\/u1f987.com\/en\/news\/wlfi-invests-nearly-113-million-in-altcoins-to-mark-trumps-inauguration\">World Liberty Financial<\/a> (WLFI) fell by $51.7 million (-21%).<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">World Liberty Financial\u2019s $242.77M crypto investment made between Jan 19 and 31 is now down over $51.7M (-21%) after Trump\u2019s new tariffs rattled the markets!<\/p>\n<p>Their top 3 biggest losses include:<br \/>\u2022 <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a>: -$36.7M (-24.4%)<br \/>\u2022 <a href=\"https:\/\/twitter.com\/search?q=%24WBTC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$WBTC<\/a>: -$8M (-12.1%)<br \/>\u2022 <a href=\"https:\/\/twitter.com\/search?q=%24ENA&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ENA<\/a>: -$2.05M (-43.7%)<\/p>\n<p>Trump\u2026 <a href=\"https:\/\/t.co\/5BxSnpAubl\">https:\/\/t.co\/5BxSnpAubl<\/a> <a href=\"https:\/\/t.co\/7B45g73oLl\">pic.twitter.com\/7B45g73oLl<\/a><\/p>\n<p>\u2014 Spot On Chain (@spotonchain) <a href=\"https:\/\/twitter.com\/spotonchain\/status\/1886241918214181302?ref_src=twsrc%5Etfw\">February 3, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Bitcoin dominance topped 64%. At the time of writing the gauge is 61.7%.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXdZx8JDj--JDFIaLFQyQ6CCbiWDPJSrDHHv2LqpppERkVbUNGXYCAhzQiRknkU2wjLUkXIVjJ_5Ay74x08T38Jo87irJZN97H5rDFkGqsBposxx-0zJifhbJch2dIs8wBxczMHw0w?key=apYFZwE_DQ8IkUYgmZ8xFHV6\" alt=\"\u041a\u0440\u0438\u043f\u0442\u043e\u0440\u044b\u043d\u043e\u043a \u0441\u0442\u043e\u043b\u043a\u043d\u0443\u043b\u0441\u044f \u0441 \u043c\u0430\u0441\u0448\u0442\u0430\u0431\u043d\u0435\u0439\u0448\u0435\u0439 \u043b\u0438\u043a\u0432\u0438\u0434\u0430\u0446\u0438\u0435\u0439 \u0432 \u0438\u0441\u0442\u043e\u0440\u0438\u0438\"\/><figcaption class=\"wp-element-caption\">Hourly chart of bitcoin dominance. Data: <a href=\"https:\/\/www.tradingview.com\/chart\/?symbol=CRYPTOCAP%3ABTC.D\">TradingView<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">The biggest liquidation on record<\/h2>\n<p>The sharp sell-off produced the largest liquidation in crypto history\u2014about $2.27 billion, according to <a href=\"https:\/\/www.coinglass.com\/LiquidationData\">CoinGlass<\/a>.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXeTcjJEXjeQhZ8Us8anK-CenEtk2kgxnjv6y3Y2OaKzDm1G4sCGPkbL6tZAhN0WAQJc7pJKcxTOFjuDC4gijQRpZYkGXVFRL8VT9qVExX1ohmh3pXzR5c1mRzvbkIoa59yfu18L7w?key=apYFZwE_DQ8IkUYgmZ8xFHV6\" alt=\"\u041a\u0440\u0438\u043f\u0442\u043e\u0440\u044b\u043d\u043e\u043a \u0441\u0442\u043e\u043b\u043a\u043d\u0443\u043b\u0441\u044f \u0441 \u043c\u0430\u0441\u0448\u0442\u0430\u0431\u043d\u0435\u0439\u0448\u0435\u0439 \u043b\u0438\u043a\u0432\u0438\u0434\u0430\u0446\u0438\u0435\u0439 \u0432 \u0438\u0441\u0442\u043e\u0440\u0438\u0438\"\/><figcaption class=\"wp-element-caption\">Data: CoinGlass.<\/figcaption><\/figure>\n<p>Over the past 24 hours, positions worth $615.72 million in ETH pairs, $417.77 million in BTC and $123.3 million in XRP were forcibly closed.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The worst liquidation day in history of <a href=\"https:\/\/twitter.com\/hashtag\/Crypto?src=hash&#038;ref_src=twsrc%5Etfw\">#Crypto<\/a> &#038; <a href=\"https:\/\/twitter.com\/hashtag\/Altcoins?src=hash&#038;ref_src=twsrc%5Etfw\">#Altcoins<\/a>.<\/p>\n<p>More worse than FTX or Luna.<\/p>\n<p>\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) <a href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1886304392879436182?ref_src=twsrc%5Etfw\">February 3, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe worst day of liquidations in the history of cryptocurrencies and altcoins. Much worse than [the] FTX or Luna [collapses],\u201d noted analyst and MN Trading founder Micha\u00ebl van de Poppe.<\/p>\n<\/blockquote>\n<div class=\"wp-block-text-wrappers-update-2 article_update\"><time class=\"gtb_text-wrappers_update_time\">3 February 2025 | 17:24<\/time><span class=\"gtb_text-wrappers_update_head\">Update: <\/span><\/p>\n<p>According to Bybit co-founder and CEO Ben Zhou, the published liquidation tallies are materially understated, and the real figure was at least $8 billion.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I am afraid that today real total liquidation is a lot more than $2B, by my estimation it should be at least around $8-10b. FYI, Bybit 24hr liquidation alone was $2.1B, As you can see in below screenshot, Bybit 24hr liquidations recorded on Coinglass was around $333m, however,\u2026 <a href=\"https:\/\/t.co\/4WLkPxTYF4\">https:\/\/t.co\/4WLkPxTYF4<\/a> <a href=\"https:\/\/t.co\/woTOHQvNkt\">pic.twitter.com\/woTOHQvNkt<\/a><\/p>\n<p>\u2014 Ben Zhou (@benbybit) <a href=\"https:\/\/twitter.com\/benbybit\/status\/1886393172152156604?ref_src=twsrc%5Etfw\">February 3, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The entrepreneur explained that over 24 hours on Bybit alone, liquidations reached roughly $2.1 billion, whereas analytics services counted only $333 million because of limitations in the <span data-descr=\"application programming interface\" class=\"old_tooltip\">API<\/span>.<\/p>\n<p>Zhou is convinced other exchanges work the same way, so their figures may be inaccurate as well.<\/p>\n<\/div>\n<h2 class=\"wp-block-heading\">Implications for crypto and the macroeconomy<\/h2>\n<p>Economist Alex Kr\u00fcger argues the announced tariffs were \u201csignificantly worse\u201d than markets had expected. This will weigh on the stock market and the US economy at large.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Have seen quite a few takes about how tariffs are good for bitcoin or good for the US economy or how this is just market manipulation. But bitcoin is mainly a risk asset. Tariffs this aggressive are very negative for risk assets. And the economy will take a hit.<\/p>\n<p>The tariffs\u2026<\/p>\n<p>\u2014 Alex Kr\u00fcger (@krugermacro) <a href=\"https:\/\/twitter.com\/krugermacro\/status\/1886177144562397640?ref_src=twsrc%5Etfw\">February 2, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>He considers the situation particularly unfavourable for \u201crisk assets\u201d, among which he includes bitcoin.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWhat gives crypto hope is that the market has already sold off heavily in anticipation [of the tariff news], potentially limiting the depth of the fall. This applies especially to altcoins, which were practically destroyed,\u201d Kr\u00fcger added.<\/p>\n<\/blockquote>\n<p>He stressed that in the coming days market moves will largely depend on headlines, and the trend could go either way.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cI am torn between the whole market reaching a local bottom on Monday or BTC testing the bottom of the range ($90,000) again. Perhaps both,\u201d the economist suggested.<\/p>\n<\/blockquote>\n<p>He hopes that US trading partners\u2019 retaliatory measures \u201cwill not be extreme\u201d and that countries will quickly \u201cfind common ground\u201d to lower tariffs sooner.<\/p>\n<p>Kr\u00fcger believes that amid the authorities\u2019 aggressive policy the dollar\u2019s dominance will strengthen. But the economy will soon feel the hit, leading to a weaker currency.<\/p>\n<p>Prime Minister Justin Trudeau has already <a href=\"https:\/\/www.reuters.com\/world\/americas\/canadas-trudeau-announces-counter-tariffs-2025-02-02\/\">announced<\/a> plans to impose matching 25% tariffs on about $105 billion of American imports. Mexico\u2019s authorities <a href=\"https:\/\/www.reuters.com\/world\/americas\/mexican-president-orders-retaliatory-tariffs-against-us-2025-02-02\/\">are preparing a response<\/a>, but have yet to provide details.<\/p>\n<p>The US president <a href=\"https:\/\/www.reuters.com\/world\/trump-says-americans-could-feel-pain-trade-war-with-mexico-canada-china-2025-02-02\/\">intends<\/a> to hold talks with the leaders of the two neighbouring countries on Monday, February 3.<\/p>\n<p>Under preliminary plans, the new tariffs will take effect on Tuesday, February 4.<\/p>\n<p>In early February, a CryptoQuant contributor known as Crypto Dan warned of an imminent \u201ctop\u201d and a possible shift in market phase.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On February 3, after Donald Trump\u2019s remarks about aggressive tariffs on imports into the United States, total crypto market capitalisation fell by 11.7% to $3.16 trillion. American authorities are imposing additional 25% levies on imports from Canada and Mexico, and 10% on goods from China. Trump also said he intends to take similar steps on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20849,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[480,991,1145,1150,26],"class_list":["post-20850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-price","tag-donald-trump","tag-market-analysis","tag-news-plus","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"105","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/20850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=20850"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/20850\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/20849"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=20850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=20850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=20850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}