$790 Million in Crypto Long Positions Liquidated as Bitcoin Drops to $93,000

Bitcoin and various altcoins have experienced a significant decline in value over the past day, resulting in the liquidation of numerous long positions in the cryptocurrency derivatives market. This surge in liquidations is attributed to rapid price drops and renewed tariff tensions between the US and EU.

Key Takeaways

Over the last 24 hours, the crypto market experienced $874 million in liquidations, with $788 million tied to long contracts.
Bitcoin's price plummeted from $95,500 to a low of $93,000, while Ethereum dropped from $3,350 to $3,200.
The market volatility was influenced by renewed tariff threats from the US against eight European nations.
Bitcoin accounted for around $233 million of the liquidations, while Ethereum saw $156 million, and altcoins like Solana, XRP, and Dogecoin faced significant losses.

Bitcoin

Crypto Market Experiences Major Liquidations

Data from CoinGlass indicates that recent volatility in the crypto market has led to a significant number of liquidations. A "liquidation" occurs when a trading contract incurs losses beyond a certain threshold and is forcibly closed by the exchange. Given the high volatility typical in the digital asset space, such liquidations are quite common. The last 24 hours saw a particularly volatile event, as illustrated in the table below.

Bitcoin & Crypto Liquidations

In total, the crypto market faced $874 million in liquidations during this period, with long positions constituting a significant majority at $788 million.

The steepness of these liquidations can be attributed to the price drops observed over the past day. Bitcoin's price fell sharply from $95,500 to $93,000, while Ethereum decreased from $3,350 to $3,200. Although these declines are not vast in percentage terms, their swift occurrence led to the triggered liquidations.

Factors Behind the Price Drop

The cause of the market crash appears to stem from increasing trade tensions between the US and EU. President Donald Trump recently pledged to implement tariffs on eight European countries. Starting February 1, imports from Denmark, Great Britain, Norway, Sweden, France, Germany, the Netherlands, and Finland will be subject to an additional 10% tariff. If the US is denied the acquisition of Greenland, these tariffs could escalate to 25% by June 1.

In 2025, tariff-related uncertainties notably impacted the crypto market, making it unsurprising for the latest news to generate volatility. As seen in past trends, Bitcoin contracts have dominated the liquidations.

Bitcoin & Other Cryptos

As depicted in the heatmap above, Bitcoin has incurred around $233 million in liquidations within the past day. Following Bitcoin, Ethereum saw about $156 million in liquidated contracts. Among altcoins, Solana, XRP, and Dogecoin faced the highest liquidations, with $61 million, $41 million, and $35 million, respectively. Solana's more significant drop of 6% compared to XRP's 4% likely contributes to its higher liquidation total.

Bitcoin Price Update

Currently, Bitcoin has experienced a slight recovery from its low, with the price bouncing back to $93,100.

Bitcoin Price Chart

The trend in Bitcoin's price over the last five days is illustrated above, showing the fluctuations that have characterized its recent movements.