In the past 24 hours, the cryptocurrency market has experienced the most severe sell-off of the year, with major coins collectively plummeting over 15%, and panic sentiment continues to spread.

According to OKX market data, the price of BTC fell to a low of $60,000, with a maximum drop of 18% in 24 hours, currently reported at $63,150; Ethereum dropped below $2,000, hitting a low of $1,744, and is currently reported at $1,860, with a 24-hour drop of 13.7%; Solana fell below $70, reaching a low of $67, with a 24-hour drop of 19%. The declines in major coins exceeded 12%.

Significant Losses for Major Assets

According to the latest data from CoinGecko, as of the time of writing, the price of Bitcoin is reported at $63,576, having plummeted 13.3% in 24 hours, compared to $73,311 at the same time yesterday. Bitcoin's market capitalization has evaporated by over $160 billion, with a 24-hour trading volume soaring to $14.24 billion, indicating intensified panic selling in the market.

Ethereum has faced an even more severe blow, with its price dropping to $1,848, a 24-hour decline of up to 14.3%. This is the first time Ethereum has fallen below the psychological threshold of $1,900 since April 2025. Ethereum's market capitalization has shrunk to $224 billion, with a 24-hour trading volume of $61.5 billion.

Other major coins have also not been spared. BNB fell to $611, down 12.4%, with a market cap reduced to $83.3 billion. Solana plummeted 14.0% to $79, with its market cap dropping below $45 billion. Altcoins like XRP and Cardano generally saw declines exceeding 15%.

Record Scale of Market Liquidations

This round of sharp declines triggered large-scale forced liquidations. According to Coinglass data, over the past 24 hours, the total liquidation amount across the market exceeded $2.3 billion, with long positions accounting for as much as 78%. The single-day liquidation scale ranks 10th in history, only behind the sell-off triggered by the tariff crisis in April 2025.

More than 320,000 traders were forcibly liquidated during this sell-off, and the chain reaction of liquidations intensified downward pressure on the market, creating a vicious cycle.

Multiple Factors Combine to Trigger Panic

This sell-off was not caused by a single factor but is the result of multiple negative factors resonating together. In the previous round of declines, the market was concerned about the hawkish stance of the newly nominated Federal Reserve Chairman Kevin Warsh. Warsh is seen as likely to adopt a tougher inflation control policy than Powell, which means a high-interest-rate environment may persist for a longer time. Meanwhile, the dollar index has seen a strong rebound, directly suppressing risk assets priced in dollars. Historical data shows a significant negative correlation between Bitcoin prices and the dollar index; a stronger dollar typically accompanies the sell-off of crypto assets. The continued outflow of institutional funds has further exacerbated market pressure. According to data from The Block, the U.S. Bitcoin spot ETF recorded a net outflow of $272 million on February 4, while the Ethereum spot ETF similarly faced a withdrawal of $252 million on January 30. The large-scale withdrawal of institutional investors indicates a sharp decline in market risk appetite.

Outlook for Future Trends

The market generally expects continued volatility and consolidation in the short term, making a V-shaped reversal unlikely. The main reasons include the structural weakness of altcoins, risk aversion among retail investors, and the market's heightened sensitivity to news. Many altcoins have dropped over 20%, showing structural bearishness and facing ongoing selling pressure from retail investors. After suffering significant losses, retail investors are generally risk-averse, leading to a decline in speculative demand. At the same time, the market is extremely sensitive to geopolitical news regarding trade relations and changes in monetary policy.

In light of the current market environment, Odaily Planet Daily advises investors to strictly manage risks, avoid excessive leverage, and set reasonable stop-loss levels. Investors should focus on high-quality projects, selecting those with solid fundamentals and practical application scenarios. Maintaining a long-term perspective is also important, as historical data shows that the crypto market is cyclical, with recoveries following each major decline. Finally, during times of panic, it is crucial to be wary of emotional trading, avoid chasing prices, and rationally assess market conditions.

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