Cryptocurrency liquidations exceeded $1.5 billion in 24 hours, raising concerns about the bear market. This is the third time in February that the 24-hour market liquidation has exceeded $1 billion.
However, even if the worst predictions come true, analysts believe that cryptocurrencies can still establish a bottom and make a stronger comeback by mid-2025.
Flash Crashes and Increased Liquidations
Rumors of a bear market are spreading across the cryptocurrency market. There have been massive outflows from Bitcoin ETFs, which is negatively impacting asset prices.
However, looking at the data more broadly, losses are increasing across the cryptocurrency spectrum, with over $1.5 billion in liquidations in the past 24 hours:
Bit is the largest cryptocurrency asset, and its decline is connected to the massive ETF market, but it is not the biggest loser today. Ethereum stood out in cryptocurrency liquidations, partially related to the aftermath of the Bybit hack last week.
Bit fell below $90,000 today, the first time in 3 months. The massive outflows from consecutive ETFs reflect the retreat of institutional investors.
Meanwhile, Ethereum experienced the largest liquidations, with the aftermath of the Bybit hack last week still visible to some extent. Specifically, today's plunge reflects the tendency for frequent flash crashes in the market.
In 2025, the cryptocurrency market experienced four major crashes within 24 hours, triggered by various macroeconomic factors.
The market has recovered quickly each time, but the frequency of these liquidations is concerning. However, it clearly shows that market sentiment is changing rapidly.
Looking at the Fear and Greed Index over the past 3 months, the volatility in market sentiment is evident. Currently, in 2025, market sentiment is at its lowest level.
Despite these major cryptocurrency liquidations, not everyone in the industry is feeling the bear market. Binance CEO Richard Teng argued that these developments are just tactical retreats, not reversals, and the fundamental drivers of cryptocurrency growth remain firm.
"Price fluctuations often obscure what's happening underneath. But the fundamental drivers of cryptocurrency growth remain steadfast. Market corrections can feel unsettling, but they are also moments when experienced investors are positioning for the next uptrend. For those focused on the bigger picture, volatility is opportunity." - Binance CEO Richard Teng
In other words, Teng encouraged the pessimists to remember the cyclical nature of this industry. Major crashes have occurred before and will occur again.
All major cryptocurrency projects are facing liquidations, with Solana's price at a 4-month low and XRP at its lowest point since December. However, the industry has a strong foundation.
The political movements in the cryptocurrency industry are still on an upward trend, and institutional investors are showing great interest. Teng could only speak about his own company, but Binance data shows steady growth in new users.
Once the dust settles after these liquidations, the cryptocurrency community can establish a bottom and pursue greater gains.
