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Over 730,000 traders faced liquidations as Ether led the market plunge. Analysts compared the impact with the FTX collapse and COVID-19 crash.
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More than $2.24 billion was liquidated from the cryptocurrency markets in the past 24 hours amid growing geopolitical uncertainties arising from the global tariff war. Ether (ETH) took the lead, with combined long and short liquidations worth over $609.9 million.
Total daily crypto liquidations on Jan. 3 of over $2.24 billion were shared across more than 730,000 traders. The biggest single liquidation order was recorded on crypto exchange Binance for an ETH/BTC trading pair valued at $25.6 million, according to CoinGlass data.
Biggest crypto exchanges facilitate the liquidation
During the timeframe, 36.8% of all liquidations happened on Binance, owing to its massive user base. Other crypto exchanges sharing the liquidations were OKX, Bybit, Gate.IO and HTX.
Liquidations on crypto exchanges. Source: CoinGlass
Long traders lost $1.88 billion, or 84% of the total liquidations, highlighting overall anticipation of another bull run.
Related: Bitcoin retail sellers send $625M to Binance before ‘first cycle top’
In January, the US spot Bitcoin exchange-traded funds (ETFs) pulled in nearly $5 billion worth of investments, setting the stage for a potential $50 billion in inflows by the end of 2025.
Adverse effects of global politics on crypto markets
Alongside the massive liquidations, top altcoins, including ETH and Cardano (ADA), dropped double digits in an hour after US President Donald Trump announced the first round of tariffs against imports from China, Canada and Mexico.
Cryptocurrency prices by market capitalization. Source: CoinGecko
Theya’s Bitcoin head of growth and analyst, Joe Consorti, noted that the Trump-induced $2.24 billion liquidation event was larger than liquidations during the COVID-19 pandemic and the FTX collapse.
As of Feb. 3, the investor sentiment in the crypto market stands at “fear,” according to Alternative.me data.
Crypto Fear & Greed Index (based on the analysis of emotions and sentiments). Source: Alternative.Me
This suggests that crypto investors are starting to get worried about their investments. Historically, extreme fear sentiments have served as a buying opportunity for many.
Magazine: Pectra hard fork explained — Will it get Ethereum back on track?
This article first appeared at Cointelegraph.com News
