Author|jk
In the past 24 hours, the cryptocurrency market has experienced its most severe sell-off of the year, with major coins collectively plummeting over 15%, and panic continues to spread.
OKX market data shows that the BTC price fell to a low of $60,000, with a maximum 24-hour drop of 18%, currently reported at $63,150; Ethereum broke below $2,000, falling to a low of $1,744, currently reported at $1,860, with a 24-hour decline of 13.7%; Solana broke below $70, falling to a low of $67, with a 24-hour drop of 19%. All major cryptocurrencies fell by more than 12%.
Major Assets Suffer Heavy Losses
According to the latest data from CoinGecko, as of press time, Bitcoin is reported at $63,576, plummeting 13.3% in 24 hours. At this time yesterday, Bitcoin was still at $73,311. Bitcoin's market capitalization evaporated by over $160 billion, with 24-hour trading volume surging to $142.4 billion, indicating intensified panic selling in the market.
Ethereum was hit even harder, falling to $1,848, with a 24-hour decline of 14.3%. This is the first time since April 2025 that Ethereum has broken below the psychological barrier of $1,900. Ethereum's market capitalization shrank to $224 billion, with a 24-hour trading volume of $61.5 billion.
Other major cryptocurrencies were not spared either. BNB fell to $611, down 12.4%, with its market capitalization shrinking to $83.3 billion. Solana plunged 14.0% to $79, with its market capitalization falling below $45 billion. Altcoins like XRP and Cardano generally fell by more than 15%.
Record-Breaking Market Liquidation Scale
This round of sharp declines triggered massive forced liquidations. According to Coinglass data, over the past 24 hours, the total liquidation amount across the market exceeded $2.66 billion, with long positions accounting for as much as 87% of the liquidations. The single-day liquidation scale ranks 10th in history, second only to the sell-off triggered by the tariff crisis in April 2025.
Over 580,000 traders were liquidated during this crash. The chain reaction of liquidations exacerbated the downward pressure on the market, creating a vicious cycle.
Multiple Factors Combine to Trigger Panic
This crash was not caused by a single factor but rather the resonance of multiple negative factors. During the previous decline, the market was concerned about the hawkish stance of the new Fed Chair nominee, Kevin Warsh. Warsh is perceived as likely to adopt a tougher inflation control policy than Powell, meaning the high-interest-rate environment could persist for a longer time. At the same time, the US Dollar Index saw a strong rebound, which directly pressured dollar-denominated risk assets. Historical data shows a significant negative correlation between Bitcoin's price and the US Dollar Index; a stronger dollar is usually accompanied by selling in crypto assets. Continued outflows of institutional funds further intensified market pressure. According to data from The Block, US Bitcoin spot ETFs recorded a net outflow of $272 million on February 4th, and Ethereum spot ETFs also saw a withdrawal of $252 million on January 30th. The large-scale exit of institutional investors indicates a sharp decline in market risk appetite.
Future Outlook
The market generally expects continued consolidation in the short term, with a V-shaped reversal unlikely. The main reasons include structural weakness in altcoins, risk aversion among retail investors, and high sensitivity to news developments. Many altcoins have fallen more than 20%, showing structural bearishness and facing continued selling pressure from retail investors. Retail investors, having suffered significant losses, are generally risk-averse, leading to decreased speculative demand. Meanwhile, the market is extremely sensitive to geopolitical news such as trade relations and monetary policy changes.
Facing the current market environment, Odaily Planet Daily advises investors to strictly manage risks, avoid excessive leverage, and set reasonable stop-loss levels. Investors should focus on high-quality projects, choosing those with solid fundamentals and real-world application scenarios. Maintaining a long-term perspective is also crucial; historical data shows that the crypto market is cyclical and has recovered after every major crash in the past. Finally, during times of panic, be wary of emotional trading, avoid chasing rallies and selling off in panic, and rationally assess the market situation.
