Crypto crash wipes out $2.2B—Worse than FTX and LUNA

Crypto traders betting on higher prices just got wrecked. Over $2.2B in liquidations hit the market as Bitcoin fell to $91K and Ethereum crashed 20% in 24 hours.

Traders who were betting big on prices moving higher saw their positions forcefully liquidated as panic over Trump’s newly imposed tariffs on Canada, Mexico, and China triggered a massive crypto crash. The chaos led to the worst single-day liquidation event ever recorded—surpassing even the Terra (LUNA) collapse and the FTX (FTT) downfall.

According to CoinGlass, futures traders felt the brunt of this storm, with $1.87 billion in long positions liquidated compared to $345 million in short positions as of Feb. 3.

Ethereum (ETH) took the heaviest damage, with $600 million in ETH liquidations, while Bitcoin (BTC) followed with $400 million.

The price drops were just as brutal—Ethereum crashed to $2,500, down 20% in 24 hours, while Bitcoin dropped to $91,200 before bouncing back to $93,600, still losing 6.5% in a single day.

Altcoins were hit even harder, with most in the top 100 seeing declines of 15% to 30% in just 24 hours, further amplifying the panic across the board. 

The sheer amount of leverage in the system meant that as soon as prices started falling, liquidations snowballed, deepening the decline. The market, already fragile from recent volatility, couldn’t absorb the selling pressure fast enough.

One analyst has called this the worst altcoin collapse since the Covid crash and warned against trying to “revenge trade” with leverage, emphasizing that now is the time for patience, not reckless bets.

For now, the damage is done. The next few days will determine whether this was just a temporary shakeout or the start of something bigger.