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- $800 billion wiped from the crypto markets in 60 hours.
$800 billion wiped from the crypto markets in 60 hours.
US tariffs shake the crypto markets.
Coinsauce
February 03, 2025
Welcome back to the Daily Coinsauce Newsletter! Let’s dive into today’s updates—there’s a lot to unpack!
💧Top headlines from the last 24 hours:
• $800 billion wiped from the crypto markets in 60 hours.
• Bitcoin dominance hits cycle highs.
📕Educational :
• How a retail shakeout could lead to a relief rally.
Lets dive in.
📅 Today
The Altcoin Bloodbath 🔻
Over $2B worth crypto were liquidated in 24 Hours – the highest ever - and worse than COVID, FTX & Luna.
This was the worst crypto liquidation event ever, with $2.3b in 24h liquidations + $750b of market cap wiped in 3 days.
The following contributed to this brutal dump 👇️
⇢ Over $2.15B was wiped out—the largest liquidation in history, surpassing FTX and LUNA.
⇢ The main culprit? Excessive leverage. Retail traders piled in after Trump's win and meme-coin hype, fueling the greed.
⇢ BTC plunged below $100K, hitting a three-week low of $91K after Trump’s tariff announcements triggered mass liquidations.
⇢ Tariff breakdown: 25% on Canada & Mexico, 10% on China—spooking markets with uncertainty.
⇢ The Canadian dollar sank to a 22-year low against the USD.
⇢ Canada retaliated with $155B in counter-tariffs, escalating a trade war.
⇢ Inflation Concerns: US PCE inflation data showed three months of rising prices, impacting risk assets.
$90,000 remains the key support level for Bitcoin to hold. For intraday traders, a pull-back to the 0.618 FIB levels at around $98,000 - $100,000 could be good areas to short the market.
Bitcoin Dominance Hits Cycle Highs 🙏
Bitcoin dominance surged above 64%, sending altcoins into free-fall territory, where most major alts crashed over 30% in a single day, and 50% in a week.
While this short term pain can feel terrible, this is actually a good sign for the future, as now, we can expect the alt-season to be even more intense and bigger.
Once BTC Dominance starts to fall, alts should start outperforming BTC.
Due to the uncertain macro conditions and the ongoing US trade wars, it is difficult to predict when exactly this will happen.
We continue to believe that the top is not yet in, and DCAing in spot into fundamentally strong tokens like BTC, ETH, etc during such dumps remains a good opportunity.
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🌎 Other News
📕 Educational
Retail traders have been completely flushed out of the market. Usually, capitulation signs like these result in relief rallies or short-term bounces in prices, before the dominant trend continues.
If the bounce is aggressive, chances are that $92,000 could be the local bottom. However, if the relief bounce is slow and steady, there are higher chances of downside continuation once the relief rally ends
📊 Stat of the day
🤣 Meme of the day
That concludes our update for today!
We appreciate you joining us for the latest news. We aim to provide the best-in-class insights and highlights that keep you well-informed and ready.
Remember to join us on Telegram and Twitter for additional updates and giveaways. Until then, see you next time!
Disclaimer: None of the content shared in the newsletter is financial advice. Always do your own research and analysis before investing.
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