🚨 $2.2 BILLION GONE! MASS LIQUIDATIONS WIPE OUT 729,000 TRADERS IN ONE DAY! 💥💰
On February 3, 2025, the cryptocurrency market experienced a significant downturn, leading to substantial trader liquidations. The market’s total capitalization decreased by approximately $400 billion, marking one of the most severe declines in recent history. 
Key Highlights:
• Total Liquidations: Over $2.2 billion in leveraged positions were liquidated within a 24-hour period. Bybit’s CEO, Ben Zhou, suggested that actual liquidations might have reached between $8 billion and $10 billion, citing API limitations that may have caused underreporting. 
• Trader Impact: Approximately 729,073 traders faced liquidations during this period. The largest single liquidation occurred on Binance, involving an ETH/BTC trade valued at $25.64 million. 
• Asset-Specific Losses: Ethereum (ETH) traders experienced significant losses, with over $600 million in leveraged positions liquidated. Dogecoin (DOGE) traders also faced substantial liquidations, totaling over $82 million. 
Market Context:
The downturn was largely attributed to geopolitical tensions following the U.S. administration’s announcement of new tariffs:
• Tariff Details: A 25% tariff on imports from Canada and Mexico, and a 10% tariff on goods from China. These measures heightened fears of a global trade war, leading to a sell-off in risk assets, including cryptocurrencies. 
Conclusion:
This event underscores the inherent volatility of the cryptocurrency market and the risks associated with leveraged trading. Traders are advised to exercise caution, employ risk management strategies, and stay informed about global economic developments that could impact market dynamics.
