Bitcoin Price Drop Sparks Significant Liquidations
- Bitcoin BTC -2.59% price drop causes $2.55 billion in liquidations.
- Wintermute identifies macroeconomic reasons for the decline.
- Cascading effects observed in other cryptocurrencies.
Wintermute reported on February 3, 2026, that Bitcoin fell below $80,000, causing $2.55 billion in liquidations, marking one of the largest crypto events in history.
This financial turmoil highlights concerns over macroeconomic influences, pushing major cryptocurrencies like Ethereum ETH -2.21% and Solana SOL -6.14% into further instability, as investors reconsider market strategies.
Wintermute reported a substantial Bitcoin price drop below $80,000, leading to $2.55 billion in liquidations—the 10th largest event in crypto history. Macroeconomic factors like weak tech earnings played a role.
The event involved Bitcoin and had cascading impacts on other crypto assets like Ethereum and Solana. Wintermute’s analysis was shared publicly on Twitter on February 3, 2026.
The immediate effects were felt across the crypto markets, with increased pressure on derivatives and spot trading positions. Even major altcoins were not spared from these impacts.
Financially, the incident highlighted vulnerabilities in overly-leveraged crypto positions. Socially, there was increased uncertainty regarding macro drivers and the future of crypto asset stability.
Historically, this ranks as a major liquidation event, differing from past failures. Most notably, it wasn’t caused by internal flaws but driven by external macroeconomic changes. Wintermute, Crypto Market Maker, said, “Bitcoin falls below $80,000, triggering $2.55 billion in liquidations.”
Potential outcomes include regulatory scrutiny on leverage in crypto markets and strengthened risk management practices. Analysts predict market recovery could commence in H2 2026, relying on robust infrastructure.
