Crypto Market Crash: BTC, ETH, XRP Slip as Crypto Prices See $3B Liquidation

Key Insights:

• Crypto market crash erased over $3B in leveraged positions in days.
• Bitcoin, ETH, and XRP remain under pressure after failed rebounds.
• ETF outflows and weak buying continue to limit recovery.

The crypto market crash of Feb. 5 hit fast and without much warning. One day, prices were already weak. The next day, they were falling everywhere. All large-cap and even mid-cap cryptocurrencies felt the heat

Crypto prices dropped sharply. More than $3 billion in leveraged trades were wiped out in a short time. Many traders were forced out at once. That made the fall even worse. Even though some prices tried to bounce later, confidence has not really returned. Right now, most traders are still careful.

Bitcoin, Ethereum, and XRP Fell in the Crypto Market Crash

During this crypto market crash, Bitcoin price dropped below $63,000 and briefly touched $60,000. That level had not been seen for a long time. Yes, a rebound to $64,000 happened. But the move was slow. There was no strong buying behind it.

Compared to its peak near $126,000 in 2025, the Bitcoin price is now down almost 50%. Many investors who bought late are still sitting on losses.

One of the Most Impactful Crypto Market Crashes | Source: X

ETH also fell below $2,000 and breached $1,900. Over the past few weeks, every small recovery has been sold into. Buyers are not staying for long. XRP also came under pressure. It dropped to $1.20 in some sessions. Solana was hit even harder. At one point, SOL fell close to $67. Most altcoins moved together.

When Bitcoin falls like this, smaller coins usually fall more. That is what happened again. Some prices did bounce slightly. Bitcoin moved as buying jumped. ETH crossed $1,950 again. But these moves did not last. So far, every rise has met new selling.

Liquidations Turned a Fall into a Collapse During Crypto Market Crash

One big reason this crypto market crash became so deep was leverage. Many traders were using borrowed money. They were betting that prices would rise. When the market started falling, those bets failed quickly.

CoinGlass data shows that more than $2.5 billion to $3 billion was liquidated. Over half a million traders were affected.

Liquidations Soar | Source: CoinGlass

Most of these were long trades. People expected Bitcoin and Ethereum to hold. When key levels broke, exchanges closed positions automatically.

Bitcoin alone saw more than $1 billion wiped out during the crypto market crash. Ethereum followed with hundreds of millions. Solana and XRP were also hit. The process was quick and rough. The price fell. Trades were closed. And more coins were sold.

Price fell again. This kept happening for hours. Without leverage, the market would still have dropped. But it would have been slower. Liquidations made it violent. Many traders were caught by surprise.

ETF Outflows and Weak Demand are Still a Problem

Liquidations explain the speed of the fall. But they do not explain everything. Another issue is ETF selling. Over the past few weeks, Bitcoin ETFs have seen heavy outflows. When investors pull money out, the funds have to sell Bitcoin. That adds pressure every day. Ethereum ETFs have seen similar patterns.

At the same time, global markets are nervous with the US-Iran tensions growing. Stocks are weak. Interest rate worries remain. Many investors are reducing risk.

Crypto market crash seems part of that. On-chain data also shows that long-term holders have been selling slowly for months. Support levels became weaker, and there were not enough buyers.

The Broader Market Crashed as Well | Source: X

Now, many analysts are cautious. Some think Bitcoin may test $60,000 again and even lower. Others think prices may stay weak for weeks. Very few expect a fast recovery. Altcoins remain risky. Many people who bought higher are waiting to sell if prices rise. That limits upside. Right now, confidence is low.

Most traders are watching instead of acting. Until ETF outflows slow and buyers return, crypto prices are likely to remain unstable. This crypto market crash has reminded everyone again how quickly things can change in this market.

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