Over $247M liquidated as crypto traders misjudge market volatility.
Crypto exchange Binance leads in liquidations, accounting for approximately 40% of trader losses.
Market sentiment dips to 2023 levels, mirroring post-FTX collapse fears.
The crypto market has been in turmoil since Monday, February 3, with more than $2 billion wiped out, triggering liquidations surpassing even the historic crashes of the COVID-19 crisis and the FTX collapse. Despite the sharp sell-offs, many traders continue to gamble in the derivatives market, hoping to profit from the volatility.
However, the market has shown no mercy. As of Monday, February 10, total liquidations exceeded $246 million, affecting more than 120,337 traders, according to CoinGlass . The largest single liquidation order worth $1.30 million occurred on OKX for an ETH/USDT trading pair.
Market Uncertainty and Trump’s Economic Policies
The recent downturn in the crypto market has been fueled by economic uncertainty surrounding President Donald Trump’s new fiscal policies in his second term. His administration’s aggressive stance on inflation control, tax reforms, and deregulation has sparked volatility across traditional and digital asset markets.
One key factor is speculation over the Federal Reserve’s next interest rate move. Market analysts anticipate that Trump’s pressure on the Fed to cut rates could influence capital flows into and out of risk assets, including cryptocurrencies. Meanwhile, recent discussions on crypto regulations and potential restrictions on stablecoins have further unsettled investors.
As a result, Bitcoin plunged to $95,000 before recovering slightly to $97,691 on Monday morning, according to CoinMarketCap. The downturn also pulled altcoins lower, bringing the global crypto market cap to $3.19 trillion — a sharp decline that has made conditions even riskier for leveraged traders.
Liquidation Breakdown across Exchanges
Over the past 24 hours, traders suffered significant losses, with long positions accounting for the majority at $167 million. This indicates that many investors were expecting a rebound, but the market moved against them. Meanwhile, short traders faced a more modest liquidation of $57 million.
Thanks to its massive user base, leading global crypto exchange accounted for nearly 40% of the total liquidation. Other exchanges, such as , Bybit, Gate.io, and HTX (formerly Huobi Global), also contributed substantially to today’s liquidations.
Is the Bull Run Over?
Meanwhile, the scale of liquidations has sent shockwaves through the industry, raising concerns about whether the bull run is over. Market sentiment remains divided, with some traders expecting further declines while others believe the market is gearing up for another rally.
Earlier today, Kaito, a blockchain information platform, that market sentiment had regressed to 2023 levels when the industry was still reeling from the aftermath of the Terra (LUNA) and FTX collapses in 2022, which forced many companies into bankruptcy. This comes just two months after the recent rally that began in November, following ‘s victory over Kamala Harris in the 2024 US presidential election.
For now, uncertainty dominates, and leveraged traders are feeling the heat as the market continues to show little mercy.