Original | Odaily Planet Daily (@OdailyChina)
Author | jk
In the past 24 hours, the crypto market has experienced its most severe sell-off of the year, with major cryptocurrencies collectively plummeting over 15%, and panic sentiment continues to spread.
OKX market data shows that the BTC price fell to a low of $60,000, with a maximum 24H drop of 18%, currently trading at $63,150; Ethereum broke below $2,000, falling to a low of $1,744, currently trading at $1,860, with a 24H drop of 13.7%; Solana broke below $70, falling to a low of $67, with a 24H 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 trading at $63,576, plummeting 13.3% in 24 hours. At this time yesterday, Bitcoin was at $73,311. Bitcoin's market capitalization evaporated over $160 billion, and its 24-hour trading volume surged to $142.4 billion, indicating intensified panic selling in the market.
Ethereum was hit even harder, falling to $1,848, with a 24-hour drop of 14.3%. This is the first time Ethereum has fallen below the psychological level of $1,900 since April 2025. Ethereum's market capitalization shrank to $224 billion, with a 24-hour trading volume of $61.5 billion.
Other major cryptocurrencies were not spared. 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 over 15%.
Record Market Liquidation Scale
This sharp decline triggered massive forced liquidations. Data from Coinglass shows that over the past 24 hours, the total market liquidation amount exceeded $2.66 billion, with long positions accounting for a staggering 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 plunge. The chain reaction of liquidations exacerbated the market's downward pressure, creating a vicious cycle.
Multiple Factors Combine to Trigger Panic
This crash was not caused by a single factor but rather a resonance of multiple negative factors. During a 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 more aggressive inflation control policy than Powell, meaning the high-interest-rate environment could persist longer. Simultaneously, 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 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 similarly faced a $252 million withdrawal 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 market sensitivity to news. Many altcoins have fallen more than 20%, are structurally bearish, and continue to face selling pressure from retail investors. Retail investors, having suffered significant losses, are generally risk-averse, leading to decreased speculative demand. At the same time, 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 the crypto market is cyclical and has recovered after every major crash in the past. Finally, be wary of emotional trading during periods of panic, avoid chasing pumps and dumping, and rationally assess the situation.
