$2.5B Crypto Wipeout: Bitcoin, Ethereum Prices Crushed

The crypto market faced a brutal reset on February 3, when Bitcoin plunged to the $72,000 zone during the European evening session. BTC is now trading around $77,000–$78,000 after briefly losing the key $75,000 support level. The intraday drop marked one of the sharpest corrections of 2026, with volatility spiking across spot and derivatives markets.

More than $2.5 billion in crypto positions were liquidated within 48 hours, with over $700 million erased in a single day. The majority of liquidations came from long positions, signaling overcrowded bullish leverage. Open interest dropped sharply as exchanges saw cascading forced closures. Funding rates flipped negative across major platforms, reflecting aggressive short positioning after the breakdown.

Bitcoin is now roughly 35% below its prior cycle high near $125,000. Spot volumes surged during the decline, confirming heavy selling pressure rather than a purely derivatives-driven move. The Fear and Greed Index has fallen into extreme fear territory, highlighting deteriorating sentiment.

Ethereum and Altcoins: Broad Market Sell-Off

Ethereum mirrored Bitcoin’s collapse, dropping toward the $3,600–$3,800 range after trading above $4,200 earlier in the week. ETH liquidations accounted for hundreds of millions of dollars as leveraged longs were flushed out. The ETH/BTC pair weakened, signaling relative underperformance during the panic phase.

Altcoins suffered even steeper losses. Solana, BNB, and other large-cap tokens posted double-digit percentage declines within hours. Several mid-cap altcoins fell 15–25% intraday as liquidity thinned and stop-losses accelerated downside momentum. Total crypto market capitalization contracted sharply, wiping out tens of billions in value.

On-chain data showed increased exchange inflows before the crash, often a precursor to sell pressure. Stablecoin inflows rose after the drop, suggesting capital rotation and potential dip-buying interest at lower levels.

Technically, Bitcoin must reclaim $80,000–$82,500 to restore short-term bullish structure. Immediate support remains near $72,000, with deeper liquidity clusters around $68,000. Until key resistance levels are recovered, the market remains vulnerable to continued volatility and further liquidation-driven swings.