A nearly 20% single-day plunge—how long has it been since you last saw Bitcoin at $60,000?
- Core Viewpoint: The crypto market experienced its most severe sell-off of the year, with mainstream cryptocurrencies generally plunging over 15%. Multiple negative factors converged, triggering large-scale liquidations and panic sentiment. The market is expected to remain volatile in the short term.
- Key Elements:
- Mainstream cryptocurrencies collectively plummeted: Bitcoin's maximum 24-hour drop reached 18%, briefly falling below $63,000; Ethereum broke below $1,900, declining over 14%; altcoins like Solana generally fell more than 15%.
- Massive market liquidation scale: Over the past 24 hours, the entire market saw liquidation amounts exceeding $2.3 billion, with 78% being long positions. More than 320,000 traders were liquidated, exacerbating downward pressure.
- Convergence of multiple negative factors: Market concerns over the hawkish stance of the new Fed chair nominee, a strong rebound in the US Dollar Index suppressing risk assets, and significant net outflows from Bitcoin and Ethereum spot ETFs.
- Cautious short-term outlook: The market generally believes a V-shaped reversal is unlikely, primarily due to structural weakness in altcoins, rising retail risk aversion, and high sensitivity to macro news.
Over the past 24 hours, the cryptocurrency market has experienced its most severe sell-off of the year, with major coins collectively plummeting over 15%, and panic sentiment continues to spread.
OKX market data shows that the BTC price fell to a low of $60,000, with a maximum 24-hour drop of 18%, currently reported at $63,150; Ethereum broke below $2,000, hitting a low of $1,744, currently reported at $1,860, with a 24-hour drop of 13.7%; Solana fell below $70, reaching a low of $67, with a 24-hour drop of 19%. All major cryptocurrencies have seen declines exceeding 12%.
Major Assets Suffer Heavy Losses
According to the latest data from CoinGecko, as of press time, the Bitcoin price is reported at $63,576, plummeting 13.3% within 24 hours. At this time yesterday, Bitcoin was at $73,311. Bitcoin's market capitalization has evaporated over $160 billion, with its 24-hour trading volume surging to $142.4 billion, indicating intensified panic selling in the market.
Ethereum suffered an even more severe blow, with its price dropping to $1,848, a 24-hour decline of 14.3%. This marks the first time since April 2025 that Ethereum has fallen below the psychological level of $1,900. Ethereum's market cap has shrunk to $224 billion, with a 24-hour trading volume of $61.5 billion.
Other major cryptocurrencies were not spared either. BNB fell to $611, down 12.4%, with its market cap shrinking to $83.3 billion. Solana plunged 14.0% to $79, with its market cap falling below $45 billion. Altcoins like XRP and Cardano generally saw declines exceeding 15%.
Record-Breaking Market Liquidation Scale
This round of sharp decline triggered massive forced liquidations. According to data from Coinglass, over the past 24 hours, the total liquidation amount across the entire market exceeded $2.3 billion, with long positions accounting for a staggering 78% of the liquidations. The single-day liquidation scale ranks 10th in history, second only to the sell-off triggered by the tariff crisis in April 2025.
Over 320,000 traders were liquidated during this crash. The chain reaction of liquidations exacerbated the market's downward pressure, creating a vicious cycle.
Multiple Factors Converge to Trigger Panic
This crash was not caused by a single factor but rather the resonance of multiple negative catalysts. During the previous round of decline, the market was concerned about the hawkish stance of the new Federal Reserve Chair nominee, Kevin Warsh. Warsh is perceived as likely to adopt a more aggressive inflation control policy than Powell, suggesting a high-interest-rate environment could persist longer. Simultaneously, the US Dollar Index experienced a strong rebound, directly suppressing risk assets priced in dollars. Historical data shows a significant negative correlation between Bitcoin's price and the US Dollar Index; a stronger dollar is typically accompanied by selling in crypto assets. Continued outflows of institutional funds further intensified market pressure. According to data from The Block, US Bitcoin spot ETFs recorded a net outflow of $272 million on February 4th, and Ethereum spot ETFs similarly faced a $252 million capital withdrawal on January 30th. The large-scale exit of institutional investors indicates a sharp decline in market risk appetite.
Future Outlook
The market generally expects continued consolidation in the short term, with a V-shaped recovery unlikely. The main reasons include structural weakness in altcoins, retail investor risk aversion, and high market sensitivity to news. Many altcoins have fallen over 20%, structurally bearish and facing persistent selling pressure from retail investors. After suffering significant losses, retail investors are generally risk-averse, leading to decreased speculative demand. Meanwhile, the market is extremely sensitive to geopolitical news such as trade relations and monetary policy changes.
Facing the current market environment, Odaily advises investors to strictly implement risk management, avoid excessive leverage, and set reasonable stop-loss levels. Investors should focus on high-quality projects, selecting those with solid fundamentals and real-world application scenarios. Maintaining a long-term perspective is also crucial; historical data shows the crypto market is cyclical, having recovered after every major decline in the past. Finally, during times of panic, be wary of emotional trading, avoid chasing rallies or selling in panic, and rationally assess the market situation.
