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Steve Muchoki
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Key Notes
- Most of the altcoins are hovering at major support levels, which could either yield a new bull rally or further capitulation in the near term.
- The Fed’s decision to continue with Quantitative tightening amid Trump’s tariff wars has significantly influenced the bearish crypto outlook.
The total crypto market dropped more than 10% in the past 24 hours to hover at about $3.2 trillion on Monday, February 3, 2025. Ethereum ETH $2 066 24h volatility: 1.3% Market cap: $249.36 B Vol. 24h: $11.65 B price led the altcoin industry in significant losses as Bitcoin BTC $88 014 24h volatility: 0.5% Market cap: $1.75 T Vol. 24h: $30.35 B price slipped below $96K to retest the support level around $91K. According to the latest market data, Ether price slipped over 15% in the past 24 hours to retest the support level of about $2,117 before rebounding slightly to trade at about $2,600 at the time of this writing.
Following the heightened sudden crypto volatility, more than $2.2 billion was liquidated from the leveraged crypto market. Ethereum’s trading pairs led in net liquidation during the last 24 hours, with a total of about $609M, whereby $479M involved long traders.
Other notable crypto liquidations in the past 24 hours included Bitcoins with around $410 million, Ripple Labs’ XRP XRP $2.46 24h volatility: 0.5% Market cap: $143.11 B Vol. 24h: $2.71 B with $117 million, Dogecoin DOGE $0.19 24h volatility: 2.4% Market cap: $28.62 B Vol. 24h: $1.73 B with around $87 million and Solana SOL $145.4 24h volatility: 2.0% Market cap: $74.49 B Vol. 24h: $4.20 B with 85M.
The recent crypto liquidations were the largest registered since the inception of Bitcoin, outperforming even Covid-19’s Black Thursday, Tera Luna’s crash, and FTX-induced selloff.
Top Reasons Why Crypto Market Dumped Today
After experiencing overheated leveraged markets in the past few months following the inauguration of pro-crypto US President Donald Trump, the aftermath has been a major cooling down catalyzed by the sell-the-news scenario. The heavy crypto liquidations of long traders in the past few days have resulted in the ongoing long-squeeze.
Furthermore, the crypto market has been following the wider global stock indexes, which have been signaling potential further selloffs ahead. The tariff trade wars between Donald Trump and other nations led by Canada, Mexico, and China have triggered mid-term market uncertainty.
Meanwhile, the crypto market has experienced low bullish momentum as whale investors lack confidence in the mid-term recovery outlook. For instance, Bitcoin and Ethereum supply on centralized exchanges increased by around 5,218 and 103,816 respectively in the past 24 hours.
What’s Next?
The crypto market has been in a macro bull rally fueled by institutional investors and nation-states seeking to capitalize on digital assets. As a result, most crypto analysts, led by Ki Young Ju from CryptoQuant, believe that the macro bullish sentiment will continue in the near future. Moreover, crypto analyst Benjamin Cowen highlighted that the crypto market tends to regain bullish sentiment after the Fed’s end of the Quantitative Tightening (QT).
However, the crypto market could be trapped in a macro bearish sentiment if Bitcoin price continues in a falling trend below $90K in the near term. On the flip side, a consistent close above $108K for Bitcoin price will trigger the thrilling phase of the macro bull cycle.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Julia Sakovich
