Crypto Flash Crash: $1.2B Wiped in 10th Largest Liquidation Event Ever

The cryptocurrency market recorded its 10th largest single-day liquidation event in history on February 1, 2026, following a sharp weekend downturn that saw over $1.2 billion in leveraged positions wiped out. This follows a broader trend of extreme volatility in early 2026, including a recent $1.8 billion liquidation wave just days prior.

Market Performance Summary

Total Liquidations: Over $1.2 billion in positions were closed within 24 hours, primarily affecting long bets.

Bitcoin (BTC): Plunged 7% to approximately $78,000, its lowest level since April 2025.

Ethereum (ETH): Fell 8%–11% to around $2,500, leading the liquidation losses with nearly $385 million in forced closures.

Catalysts: Analysts cite a combination of geopolitical tensions, including explosions at Iran's Bandar Abbas port, a brief U.S. government shutdown, and regulatory uncertainty.

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