{"id":6380,"date":"2026-02-05T17:32:43","date_gmt":"2026-02-05T17:32:43","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=6380"},"modified":"2026-02-05T17:32:43","modified_gmt":"2026-02-05T17:32:43","slug":"bitcoin-slump-sparks-1b-liquidation-frenzy-in-crypto-markets","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=6380","title":{"rendered":"Bitcoin slump sparks $1B liquidation frenzy in crypto markets"},"content":{"rendered":"<p><\/p>\n<div>\n<p>Bitcoin retreated below the closely watched $70,000 threshold, leading a broad selloff in digital assets that has erased over $1 billion in trading positions.<\/p>\n<p>According to <em>CryptoSlate&#8217;s<\/em> data, the world\u2019s largest cryptocurrency fell to lows not seen since the November 2024 election, dragging the wider market into the red.<\/p>\n<p>Ethereum slid 7% to around $2065, while XRP, a recent outperformer, dropped more than 14% to $1.35.<\/p>\n<p>Other major tokens, including Cardano, BNB, Solana, and Dogecoin, posted similar losses, succumbing to a wave of selling pressure that has firmly gripped the asset class.<\/p>\n<p>The slump marks the industry&#8217;s weakest performance since the onset of the second Donald Trump administration, reflecting a rapid shift in sentiment from post-election euphoria to risk-off capitulation.<\/p>\n<p>Unlike prior drawdowns driven by discrete shocks, traders say this move reflects a grinding erosion of confidence as capital rotates toward equities and commodities, leaving digital assets increasingly sensitive to negative headlines.<\/p>\n<p>Samson Mow, founder of Bitcoin-focused firm Jan3, said the selloff felt especially painful because of its asymmetry.<\/p>\n<p>In comments posted on social media, Mow argued that Bitcoin has struggled to benefit from risk-on narratives but remains exposed to broader risk-off moves. When fears around artificial intelligence valuations emerge, he said, crypto sells off, and when metals retreat, crypto falls alongside them.<\/p>\n<h2>Bitcoin price wobbles lead to liquidation cascade<\/h2>\n<p>On-chain data suggest the decline has been accompanied by a sharp increase in forced selling.<\/p>\n<div class=\"code-block code-block-5\" style=\"margin: 8px 0; clear: both;\">\n<div class=\"placement desktop us-deny-hide hidden\" style=\"max-height: 107px\">  <img fetchpriority=\"high\" width=\"1456\" height=\"180\" decoding=\"async\" style=\"display: block; width: 728px; max-height: 90px; max-width: 100%; margin: auto; height: 90px;\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/11\/bc_game168_Sposorship_1456x180.gif\" alt=\"BC Game\"\/><img class=\"lazyload\" width=\"1456\" height=\"180\" decoding=\"async\" style=\"display: block; width: 728px; max-height: 90px; max-width: 100%; margin: auto; height: 90px;\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/11\/bc_game168_Sposorship_1456x180.gif\" alt=\"BC Game\"\/> <\/div>\n<\/div>\n<p>Glassnode reported that Bitcoin\u2019s capitulation metric recorded its second-largest spike in the past two years, signaling a rapid escalation in liquidations and position unwinds. Such stress events typically coincide with accelerated de-risking and heightened volatility as traders reset exposure.<\/p>\n<div id=\"cs-inline-newsletter-6984c5cf06abf\" class=\"cs-inline-newsletter\" data-inline-newsletter=\"\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\"> <span class=\"cs-inline-newsletter__eyebrow\">CryptoSlate Daily Brief<\/span><\/p>\n<h3 class=\"cs-inline-newsletter__title\">Daily signals, zero noise.<\/h3>\n<p class=\"cs-inline-newsletter__copy\">Market-moving headlines and context delivered every morning in one tight read.<\/p>\n<p> <span><i class=\"fa-regular fa-bolt\" aria-hidden=\"true\"\/> 5-minute digest<\/span> <span><i class=\"fa-regular fa-star\" aria-hidden=\"true\"\/> 100k+ readers<\/span><\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__form-shell\">\n<p class=\"cs-inline-newsletter__privacy\">Free. No spam. Unsubscribe any time.<\/p>\n<p> <i class=\"fa-regular fa-circle-xmark\" aria-hidden=\"true\"\/> <span>Whoops, looks like there was a problem. Please try again.<\/span><\/p>\n<p> <i class=\"fa-regular fa-circle-check\" aria-hidden=\"true\"\/> <span>You\u2019re subscribed. Welcome aboard.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<figure id=\"attachment_518519\" aria-describedby=\"caption-attachment-518519\" style=\"width: 790px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-518519\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/HAZCM7qX0AE12Eg.png\" alt=\"Bitcoin Capitulation Metrics\" width=\"790\" height=\"500\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/HAZCM7qX0AE12Eg.png 790w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/HAZCM7qX0AE12Eg-300x190.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/HAZCM7qX0AE12Eg-768x486.png 768w\" sizes=\"(max-width: 790px) 100vw, 790px\"\/><figcaption id=\"caption-attachment-518519\" class=\"wp-caption-text\">Bitcoin Capitulation Metrics (Source: Glassnode)<\/figcaption><\/figure>\n<p>Indeed, the price drop triggered a wave of liquidations in derivatives markets.<\/p>\n<p>Data from Coinglass indicate that more than $120 million in positions were liquidated within a single hour as prices fell through key technical levels.<\/p>\n<p>Long positions accounted for the majority of the damage, with roughly $116 million liquidated, while short positions lost about $6 million.<\/p>\n<figure id=\"attachment_518518\" aria-describedby=\"caption-attachment-518518\" style=\"width: 1081px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-full wp-image-518518\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633.jpg\" alt=\"Crypto Market Liquidation\" width=\"1081\" height=\"613\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633.jpg 1081w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633-300x170.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633-1024x581.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633-768x436.jpg 768w\" sizes=\"(max-width: 1081px) 100vw, 1081px\"\/><img loading=\"lazy\" decoding=\"async\" class=\"lazyload size-full wp-image-518518\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633.jpg\" alt=\"Crypto Market Liquidation\" width=\"1081\" height=\"613\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633.jpg 1081w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633-300x170.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633-1024x581.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/02\/Screenshot-2026-02-05-133633-768x436.jpg 768w\" data-sizes=\"(max-width: 1081px) 100vw, 1081px\"\/><figcaption id=\"caption-attachment-518518\" class=\"wp-caption-text\">Crypto Market Liquidation in The Past 1-Hour (Source: CoinGlass)<\/figcaption><\/figure>\n<p>Bitcoin-linked contracts bore the brunt of the losses, with liquidations totaling more than $86 million. Ethereum traders closed approximately $16 million in positions, while bets tied to Solana and the HYPE token were liquidated for approximately $3 million and $6 million, respectively.<\/p>\n<p>Over a 24-hour period, total liquidations reached approximately $1.06 billion, underscoring the scale of leverage embedded in the market.<\/p>\n<p>Long positions accounted for nearly $900 million of that total, highlighting how quickly bullish positioning can unwind when prices move sharply lower.<\/p>\n<div class=\"post-bottom\">\n<div class=\"post-mentions-and-posted-in\">\n<div class=\"post-info-block post-mentions\">\n<header><span class=\"post-info__label\">Mentioned in this article<\/span><\/header>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Featured,In Focus,Market,Price Watch,TradFi,Trading,bitcoin,xrpbitcoin,xrp#Bitcoin #slump #sparks #liquidation #frenzy #crypto #markets1770312763<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin retreated below the closely watched $70,000 threshold, leading a broad selloff in digital assets that has erased over $1 billion in trading positions. According to CryptoSlate&#8217;s data, the world\u2019s largest cryptocurrency fell to lows not seen since the November 2024 election, dragging the wider market into the red. Ethereum slid 7% to around $2065,<\/p>\n","protected":false},"author":1,"featured_media":6381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[91,62,2239,364,450,2238,2138,230],"class_list":{"0":"post-6380","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ethereum","8":"tag-bitcoin","9":"tag-crypto","10":"tag-frenzy","11":"tag-liquidation","12":"tag-markets","13":"tag-slump","14":"tag-sparks","15":"tag-xrp"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin slump sparks $1B liquidation frenzy in crypto markets - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"Bitcoin and the broader market selloff erases $1 billion in trading positions, exposing the industry&#039;s susceptibility to volatility.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=6380\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin slump sparks $1B liquidation frenzy in crypto markets\" \/>\n<meta property=\"og:description\" content=\"Bitcoin and the broader market selloff erases $1 billion in trading positions, exposing the industry&#039;s susceptibility to volatility.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptonews.uk.com\/?p=6380\" \/>\n<meta property=\"og:site_name\" content=\"Crypto News: Latest Cryptocurrency News and Analysis\" \/>\n<meta property=\"article:published_time\" content=\"2026-02-05T17:32:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/02\/bitcoin-slope.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"\u884c\u653f\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\u884c\u653f\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=6380\",\"url\":\"https:\/\/cryptonews.uk.com\/?p=6380\",\"name\":\"Bitcoin slump sparks $1B liquidation frenzy in crypto markets - Crypto News: Latest Cryptocurrency News and Analysis\",\"isPartOf\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=6380#primaryimage\"},\"image\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=6380#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/02\/bitcoin-slope.jpg\",\"datePublished\":\"2026-02-05T17:32:43+00:00\",\"author\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#\/schema\/person\/822778c5844e0d16d43dce6630f4f1bf\"},\"description\":\"Bitcoin and the broader market selloff erases $1 billion in trading positions, exposing the industry&#039;s susceptibility to volatility.\",\"breadcrumb\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=6380#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cryptonews.uk.com\/?p=6380\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=6380#primaryimage\",\"url\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/02\/bitcoin-slope.jpg\",\"contentUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/02\/bitcoin-slope.jpg\",\"width\":1200,\"height\":630},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=6380#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cryptonews.uk.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bitcoin slump sparks $1B liquidation frenzy in crypto markets\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cryptonews.uk.com\/#website\",\"url\":\"https:\/\/cryptonews.uk.com\/\",\"name\":\"Crypto News: Latest Cryptocurrency News and Analysis\",\"description\":\"Latest Crypto &amp; 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