During the weekend, the cryptography market has known its most important correction in months, which would have been fueled by the new American prices in Canada, Mexico and China. The market closed the first two days of February in red, with a retrace of 21% of the summits on Friday.
The news also launched a massive lever liquidation worth billions of dollars. Despite the initial estimates suggesting a lower number, the CEO of Bebit revealed that the cryptographic liquidation of the total market could be considerably higher than the 2 billion dollars reported.
Crypto Market sees 21% of the trace on weekends
In early February, US President Donald Trump announced new prices on his three largest business partners: Canada, Mexico and China. According to the report, Trump implements an additional 25% rate on imports from the two neighboring countries and 10% on imports from China.
After the news, the cryptography market began to fall free from its Friday tops, Bitcoin (BTC) falling from 12.5% over the weekend at $ 91,000. The rest of the market has followed the example of the BTC, with the second largest cryptocurrency by market capitalization, Ethereum (ETH), lowering more than 35% to $ 2,100, its lowest price since September.
As the fear of a world tariff war increased, most of the Altcoins fell on monthly stockings, temporarily recovering in their range of small groups before December. Consequently, the total market capitalization of cryptography plunged 21% over the weekend, its strongest correction since the “Red Monday” in August 2024.
A recent Nansen report noted that the cryptography market seems to be “full with good news for the moment”, which makes it more “reactive to negative feeling than on positive news”, as we see with the Correction triggered by last week.
The weekend market accident also caused massive leverage liquidations, the first reports estimating more than $ 2 billion. The number of recordings represents an accident in one day larger than the COVVI-19 and FTX collapse.
Coinglass data show that “in the past 24 hours, 743,002 traders have been liquidated, the total liquidations reached $ 2.30 billion”, with liquidations of $ 637 million from Ethereum taking the lead.
Crypto liquidations hit $2.3 billion. Source: CoinGlass
Liquidations higher than expected
On Monday morning, the co-founder and CEO of Bytbit, Ben Zhou, shared an overview of the total value of recent cryptographic liquidations. In a post X, Zhou said that the “real” total number is “much more than $ 2 billion”.
According to its estimate, the liquidation of Bebit 24 hours a day was approximately 2.1 billion dollars, an increase of 530% compared to the $ 333 million recorded in quince. Zhou explained that due to the limits of the application programming interfaces (API), Coringlass did not record all liquidations.
Fyi, the liquidation of Bybit 24hr alone was 2.1 billion dollars, as you can see in the screenshot below, the liquidations of Bybit 24hr recorded on Coinglass were around 333 million dollars , but it is not all liquidations. We have a limitation of the API on the quantity of flows pushed per second.
The CEO of Crypto Exchange considers that other exchanges probably know the same limited liquidation data, which would potentially increase the total value compared to the $ 2.3 billion recorded between $ 8 and $ 10 billion.
Based on this limit, some users have asked questions about the potential gap between the real liquidation value from the collapse of the FTX. Zhou detailed that he estimated this figure as “at least 4 to 6 times from what was reported.”
In the end, he undertook to be more transparent in the future, promising that “in the future, Bybit will begin to push all the liquidation data”.
Bitcoin's performance in the one-week chart. Source: BTCUSDT on TradingView
Star image of Unsplash.com, tradingView.com graphic
