After 3 February 2025 ▪
4
min at reading ▪
The crypto market has just undergone an unprecedented financial tsunami. In 24 hours, $ 2.24 billion in the tariff war and Ethereum drove to the top of the historical debacle. Massive liquidation, dominated by a surprising announcement of Donald Trump about customs taxes, has increased records of FTX crisis and Covir-19 crash. More than 730,000 traders saw their ashes position behind these dizzying characters.
Ethereum, the first victim of a crypto cascade disposal
In crypto, the hope of getting up can turn into a deadly trap. Evidence: 84 % of liquidation concerned long positions or $ 1.88 billion lost traders by betting.
Paradox? Not really. The madness around Bitcoin ETF, after leaving $ 5 billion in January, caused blind optimism.
But the Ethereum, the indisputable star of Kryptos, crystallized tension. With 609.9 million USD liquidated only on its contracts, ETH served as a collapse of the chain.
Exchange platforms are never neutral. Binance, undeniable giant, absorbed 36.8 % of liquidation, according to Coinglass.
A record record of $ 25.6 million for a few ETH/BTCs symbolized the excitement of algorithms. OKX, Bybit and Gate.io followed, reveal a systemic vulnerability: the more liquid the replacement is, the more it becomes a panic accelerator.
A comparison that is cold at the back
Joe Consorti, an analyst in Bitcoin The Hesa, dares the metaphor of shock: “This Trump crash exceeds the FTX and Covivin Chaos. »Warning from ice.
In February 2023, the index of fear and greed plunged into the red zone and pointed out extreme fear. However, history reminds us: these moments of panic were often preceded by spectacular rebounds. Crypto, eternal cycle of rebirth?
Markets hate unknown. The announcement of customs taxes against China, Canada and Mexico served as a shock wave. In an hour, Ethereum and Cardano fell by 10 %and carried billions of capitalization with them.
Excessive reaction? Maybe. However, Krypto, the young and hyper-reactive market, intensifies every geopolitical shock. Algorithms, programmed to predict risks, transform protectionistic measures to the global crisis.
ETF Bitcoin vs. Liquidation: Duel of Stories
It is irony: While the liquidation accelerated, the Bitcoin ETF continued in the Siphon of Traditional Savings. By 2025, nearly $ 50 billion is expected in the tide, analysts said.
A contradictory signal? Not really. These structured products attract institutional clients, less sensitive to altcoins fluctuations. Proof that crypto fractures in two universes: speculative betting and “safe” investment.
The index of fear and greed shows according to alternative.me the persistent “fear”. The feeling that hides a little -known reality: massive liquidation deprives the fragile market position and offers discount prices.
After all, Bitcoin survived Mt. Gox, Cavid and FTX fall. Why not Trump? The key lies in patience … and in the art of transformation of the massacre to the opportunity despite the concerns of experts after the collapse of the Krypto XRP.
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Evariste, fascinated by Bitcoin since 2017, has not stopped documenting on this topic. If his first interest focused on trading, he now tries to actively understand all cryptocurrency progress. As an editor, he tries to permanently provide high quality work that reflects the condition of the sector as a whole.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.