Cryptocurrency "bloodbath" night: 420,000 people liquidated, total losses exceed 2.5 billion USD
On February 1, 2026, the cryptocurrency market experienced a waterfall-style sell-off in the early morning
Bitcoin briefly fell below 80,000 USD, with a 24-hour decline of over 7%, hitting a low of 76,000 USD; Ethereum plummeted over 11%, reaching a low of 2,256 USD
Major coins like Solana, BNB, Cardano, and XRP also suffered significant losses, with the total market capitalization evaporating by over 110 billion USD
According to Coinglass data, the liquidation amount in cryptocurrency contracts in the past 24 hours reached 2.561 billion USD, with 423,500 people liquidated, of which long positions accounted for 2.407 billion USD, over 94%
The largest single liquidation occurred in Hyperliquid's ETH contract, valued at 222 million USD
The trigger points to the personnel shake-up at the Federal Reserve: Trump nominated former board member Kevin Walsh as the next chairman
The market is concerned that his hawkish stance will tighten liquidity, boost the dollar, and squeeze the risk asset space
Walsh has publicly criticized most private cryptocurrency projects as "worthless"; although his attitude towards Bitcoin has softened recently, uncertainty still dominates the sentiment
The deeper issue is the failure of Bitcoin's macro narrative: the weakening dollar has not boosted its price, and the surge in gold has not brought in safe-haven funds, with continuous net outflows from spot ETFs
Retail interest is low, trading volume is shrinking, and short-term selling may reinforce itself
Thin liquidity over the weekend amplifies volatility, and Monday's opening may continue the adjustment
But in the long run, a more hawkish Federal Reserve may actually strengthen Bitcoin's narrative of "hedging against currency control"
Don't rush to invest; be patient and wait for macro signals to clarify
$BTC
