Leverage liquidation wave explodes: BTC, ETH lead the decline, triggering the largest scale long position liquidation at the beginning of 2026.
Core data on liquidations: On February 4, 2026, the crypto market experienced a rapid decline, with the total liquidation amount across the network reaching 570 million USD in the past 24 hours.
Long position bloodbath: Long position liquidations dominate absolutely, with amounts reaching 440 million USD (accounting for 77%), showing that the market has accumulated a large amount of leveraged funds betting on a rebound during the previous downtrend.
Currency distribution: BTC ranks first with a liquidation amount of 229 million USD, closely followed by ETH (192 million USD). Ethereum's single liquidation of 222 million USD on Hyperliquid has become today's market "epicenter".
Deep reasons behind the crash:
Panic over the Fed's "hawkish successor": Trump has officially nominated a popular candidate (like Kevin Warsh) for the next Fed chairman, showing potential tightening tendencies, leading to a strong rebound in the dollar index (DXY) and accelerating the withdrawal of funds from risk assets.
U.S. government shutdown crisis: The deadlock in Washington over the budget proposal has led to the temporary freezing of hundreds of billions of dollars in liquidity, with market expectations for liquidity in the first quarter of 2026 shifting from surplus to deficit.
Technical levels completely lost: BTC fell below the critical support level of $73,000 (a new low since November 2024), triggering the automatic liquidation logic of many institutions and quantitative funds.
Market sentiment: The fear and greed index has plummeted to 18 (extreme fear). Analysts believe this marks the first "structural cooling" since the bull market of 2025, with the market experiencing a power shift from buyer dominance to seller dominance.