Bitcoin Down 7%, Ethereum, XRP, Dogecoin, Shiba Inu Plunge Over 10% As $1.48 Billion Liquidation Tsunami Hits

The cryptocurrency market faced a sharp downturn over the past 24 hours, with Bitcoin BTC/USD dropping to a low of $87,115 before stabilizing at $88,850, marking a 7% decline.

Ethereum ETH/USD saw an even steeper drop of 10%, trading at $2,420.

Major altcoins also suffered losses, with Solana SOL/USD down 15%, Dogecoin DOGE/USD losing 14%, and Shiba Inu SHIB/USD and XRP XRP/USD falling by 10%.

The sell-off resulted in $1.48 billion in liquidations, with $1.37 billion coming from long positions, according to data from Coinglass.

In a note sent to Benzinga, Dr. Sean Dawson, head of research at Derive.xyz, contextualized the sell-off within historical market trends, attributing it to macroeconomic factors and recent industry shocks.

“This kind of market correction isn't new – and it’s definitely not the worst we've witnessed,” he said, pointing to geopolitical tensions and rising interest rate concerns as contributing factors.

Dawson also noted that despite the Bybit hack on Ethereum, the market has shown resilience, with Bitcoin's seven-day implied volatility rising to 46% and Ethereum's to 68%.

Also Read: Citadel Securities Moves Into Crypto Market-Making Following Trump’s Crypto-Friendly Regulation Push

Aurelie Barthere, principal research analyst at Nansen, in a note to Benzinga, highlighted broader market trends affecting crypto, stating, “BTC is now breaking lower following other token prices.”

She cited the LIBRA LIBRA/USD scam and Bybit hack as major events that have eroded risk appetite.

Additionally, concerns over slowing U.S. economic growth, evidenced by the lowest U.S. Services PMI reading in 22 months, have compounded selling pressure.

According to Barthere, upcoming catalysts for risk assets include Nvidia's earnings report on Feb. 26 and core PCE inflation data on Feb. 28.

Stella Zlatareva, Nexo Dispatch editor, predicted a prolonged consolidation phase for the crypto market amid evolving inflation and trade policies.

“Despite the current recalibration, the crypto market's overall growth trajectory remains intact,” she stated in a note to Benzinga, adding that Bitcoin could serve as both a risk asset and a store of value if inflation intensifies.

With uncertainty dominating the market, analysts suggest that while volatility remains high, long-term investors could find opportunities in the downturn.

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