Bitcoin plummets trigger chain liquidations: BTC, ETH, BNB, XRP all plunge, over $2.5 billion in positions evaporate

February 6 News, the cryptocurrency market experienced another heavy decline on Friday, with Bitcoin, Ethereum, BNB, and XRP all falling by double digits. The leveraged market liquidation amount exceeded $2.5 billion. Data shows that Bitcoin dropped 8.63% in a single day, retreating nearly 18% from the Thursday high of $73,639. During the session, it briefly touched $60,255, the lowest level since October 2024, then rebounded to around $64,600, but still down 34% from the year’s high.

Ethereum declined about 10%, hitting a low of $1,756, marking a nine-month low; BNB briefly fell below $600, with an intraday drop of approximately 11%. Mainstream tokens such as Ripple, Solana, Dogecoin, and Cardano generally fell 12% to 16%. Tokens like LEO, Monero, and Official Trump experienced even sharper declines. The total market capitalization shrank to approximately $2.27 trillion on the day.

The derivatives market saw a sharp chain reaction. Statistics show that about $2.6 billion in positions were liquidated within 24 hours, with nearly 90% coming from long positions. Bitcoin-related liquidations reached $1.08 billion, Ethereum about $455 million, affecting over 590,000 traders.

The immediate trigger for this decline was Bitcoin losing two major leverage zones at $70,000 and $65,000, triggering forced liquidations and creating a negative feedback loop of falling prices and selling. Meanwhile, the weakening of US tech stocks also increased pressure on risk assets, with Microsoft, AMD, and Nvidia experiencing significant corrections recently, leading to more conservative market sentiment.

On the macro level, weak US employment data has generated new uncertainties about economic prospects and monetary policy directions. Institutional demand has also cooled, with continuous outflows from spot Bitcoin ETFs over several days. Additionally, news that the Trump family-backed World Liberty Financial sold Bitcoin before the crash further amplified market volatility.

Sentiment indicators have also declined, with the Crypto Fear & Greed Index dropping to 9, indicating investors are in an extremely cautious phase. In the short term, the market will continue to fluctuate around key support levels.