Crypto Liquidations Rise Over $1.5 Billion in 24 Hours

Crypto liquidations have surged beyond $1.5 billion within a 24-hour period, raising concerns about a potential bear market. This marks the third instance in February where liquidations exceeded the billion mark.

However, analysts remain optimistic that even if worst-case scenarios unfold, the cryptocurrency market is well-positioned to consolidate and potentially rebound by mid-2025.

Flash Crashes and Liquidations on the Rise

Rumors of an impending bear market are gaining traction within the crypto sector. Bitcoin ETFs are experiencing significant outflows with no signs of a halt, negatively impacting Bitcoin’s price.

A broader analysis reveals escalating losses across the cryptocurrency market, with over $1.5 billion in total liquidations occurring recently:

As the leading digital asset, Bitcoin’s declines are linked to considerable ETF market activity, yet it isn’t the biggest loser today. Ethereum was particularly affected, partly due to last week’s Bybit hack.

Bitcoin has dipped below $90,000, marking a three-month low. The consistent outflow of ETFs indicates a retreat by institutional investors.

In contrast, Ethereum recorded the most significant liquidations today, still reeling from the aftermath of the Bybit incident. This latest crash underscores a trend of frequent flash crashes in the market.

Since 2025, the crypto market has faced four major crashes within a 24-hour period, driven by various macroeconomic factors.

Although the market has quickly rebounded after each incident, the frequency of these liquidations raises concerns. It signals a pronounced and rapidly changing market sentiment, more so than in previous cycles.

Recent data from the fear and greed index reveals this volatility clearly, with sentiment currently at its lowest point in 2025.

Despite major liquidations, not all industry leaders exhibit bearish sentiment. Binance CEO Richard Teng describes these developments as a tactical retreat rather than a permanent downturn.

> “Price movements often overshadow what’s happening beneath the surface, but the fundamental drivers of crypto growth remain firmly intact. Market corrections can feel unsettling, but they are also moments when experienced investors position themselves for the next bull trend. For those focused on the bigger picture, volatility presents an opportunity,” Teng stated.

In essence, Teng encouraged skeptics to remember the cyclical nature of the cryptocurrency industry. Significant crashes have occurred before, and they will inevitably happen again.

All leading crypto projects are currently facing challenges; Solana’s price has hit a four-month low and XRP is at its lowest since December. Nevertheless, the industry retains robust foundations.

The political movement surrounding cryptocurrency continues to advance, and institutional investor interest remains strong. While Teng can only speak for his firm, Binance data indicates a steady increase in new users.

Once the dust settles from these liquidations, the crypto community may emerge more consolidated, gearing up for greater gains.