Crypto Liquidations Hit $1.5 Billion as Market Sentiment Falls to Lowest Since 2025

Crypto liquidations surged more than $1.5 Bit in 24 hours, fueling Bear market concerns. This is the third time in February that market liquidations have exceeded the $1 Bit mark within a 24-hour period.

However, even if the worst predictions come true, analysts still believe that Cryptoassets are well-positioned to consolidate and make a strong comeback by mid-2025.

The rise of flash crashes and liquidations

Rumors of a Bear market are spreading across the Crypto market. Bitcoin ETFs are seeing large outflows with no signs of stopping, and this is negatively impacting the asset's price.

However, a broader look at the data shows that losses are increasing across the entire Crypto market, with over $1.5 Bit in Liquidations in the past 24 hours:

Bit is the largest Cryptoasset, and its decline is linked to the massive ETF market, but it is not the biggest loser today. Ethereum stands out in Crypto Liquidations, partly due to the aftermath of last week's Bybit hack.

Bit has dropped below $90,000 today, the first time in over three months. Large and consecutive outflows from ETFs also reflect the retreat of institutional investors.

Meanwhile, Ethereum has seen the largest Liquidations, as the aftermath of last week's Bybit hack still lingers to some extent. Most notably, the decline today reflects the rapidly recurring trend of sharp declines in the market.

In 2025, the Crypto market has seen four major Dumps within a 24-hour period, driven by various macroeconomic factors.

While the market has quickly recovered each time, the frequency of these Liquidations is concerning. However, it shows a clear trend that market sentiment is changing rapidly, even more frequently than previous cycles.

Looking at the Fear and Greed Index over the past three months, the volatility in market sentiment is evident. Furthermore, market sentiment is currently at its lowest level in 2025.

Despite the large Crypto Liquidations, not everyone in the industry is pessimistic. Binance CEO Richard Teng believes these developments are a tactical retreat, not a reversal.

"Price volatility often obscures what's happening beneath the surface, but the fundamental drivers of Crypto's development remain intact. Market corrections can be unsettling, but they are also times when experienced investors position themselves for the next uptrend. For those focused on the bigger picture, the volatility presents opportunities," Binance CEO stated.

In other words, Teng encourages the pessimists to remember the cyclical nature of this industry. Major Dumps have happened before, and indeed, they will happen again.

All the top Crypto projects are facing Liquidations; Solana price is at a four-month low and XRP is at its lowest level since December. However, the industry has a solid foundation.

The political movement of the Crypto industry is still in a developmental stage, and institutional investors have a high level of interest. Teng can only speak for his own company, but data from Binance shows steady growth in new users.

When the dust settles after these Liquidations, the Crypto community may find itself reinforced to pursue even greater gains.