Recent Crypto Crash: Understanding the Market Downfall

The crypto market experienced a significant downturn on February 3, with estimated liquidations ranging from $2.3 billion to $10 billion. While some influencers have labeled this event as the worst crypto crash in history, others argue that the severity of the crash depends on the methodology used.

Comparing Crypto Crashes

The recent downfall has been compared to previous market crashes, including the FTX and Terra Luna collapse, as well as the COVID-related plunge that saw Bitcoin lose over 50% of its value in a single day. However, experts note that the volume of liquidated leveraged crypto assets was potentially higher in the February 2025 downfall than in previous crashes.

Bybit CEO Ben Zhou estimated that the overall market liquidations could be as high as $8 to $10 billion, which would surpass the combined liquidations of the COVID, Terra Luna, and FTX shutdowns.

“I am afraid that today real total liquidation is a lot more than $2B, by my estimation it should be at least around $8-10b.”

Historical Context

Previous Bitcoin price crashes, such as those in 2011, 2013, and 2017, were also significant, but the lack of reliable data makes it challenging to compare them to more recent crashes.

In 2011, the BTC price plummeted from $2 to $0.01 following the hack of the Mt. Gox exchange. However, the absence of collateralized BTC trading at the time helped avoid severe losses.

Market Recovery

Despite the recent market bloodbath, seasoned crypto enthusiasts and professionals remain optimistic, noting that the market has recovered from similar downturns in the past.

As of the time of writing, the BTC price has recovered over half of its losses, with some experts predicting a potential bounce.

“The best assets in the world are going on sale… This is the best time to get rich.”

Tips for Crypto Investors

  • Stay calm and avoid making impulsive decisions during market downturns.
  • Consider the long-term potential of Bitcoin and other cryptocurrencies.
  • Diversify your portfolio to minimize risk.
  • Keep an eye on market trends and cryptocurrency news to stay informed.

For more insights and updates on the crypto market, visit Global Crypto News.

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