Over $870M Crypto Positions Liquidated as Bitcoin, Ether Suffer Worst Yearly Drops

Nearly $870 million in crypto positions were liquidated in the past 24 hours as Bitcoin (BTC) and Ethereum (ETH) suffered their largest single-day declines of the year.

On Feb. 28, BTC plunged below $80,000, while ETH hit a one-year low of $2,075, triggering a wave of forced liquidations across the market.

Donald Trump’s Tariff War Wipes Bullish Crypto Positions

The sudden crash comes as traders unwound leveraged positions, exacerbating the sell-off and driving further losses.

A total of 216,516 traders were liquidated, with the largest single order—worth $38 million—on HTX’s BTC-USDT pair. Long positions bore the brunt of the liquidation event, accounting for $767.51 million, while short positions saw $103.19 million wiped out.

Bitcoin liquidations alone totaled $414.80 million, while Ethereum followed with $205.56 million. Among altcoins, Solana (SOL) lost $35.82 million, followed by XRP ($22.32 million) and Dogecoin (DOGE) ($17.71 million).

The sell-off worsened during Asian trading hours after U.S. President Donald Trump announced new tariffs on Canada, Mexico, and China.

The tariffs, set to take effect on March 4, include a 25% levy on Canadian and Mexican imports and a 10% increase on Chinese goods, stoking fears of inflationary pressure and potential economic slowdowns.

Global Stocks Decline Alongside Bitcoin, Ethereum

Global markets tumbled in response, with the S&P 500 dropping 1.6%, erasing its gains for the year, while the Nasdaq 100 fell 2.8%, led by a sharp 8.5% drop in Nvidia (NVDA) shares.

The crypto market’s sharp downturn signals fading confidence in the post-election rally that had propelled BTC to record highs. The steep liquidations reflect overleveraged bullish positioning, with traders betting on continued upside only to be caught in a cascading sell-off.

Bitcoin has now fallen 27% from its all-time high of $109,350, while Ethereum is down over 40% from its December peak.

Investors will be closely watching the Federal Reserve’s core PCE inflation data, due later today, for clues on how monetary policy may shift in response to recent volatility.

If inflation remains elevated, markets could face prolonged uncertainty, keeping crypto prices under pressure in the near term.

Bitcoin (BTC) Technical Analysis — Bounce Possible

Bitcoin’s correction has put it at a critical technical juncture, with the 50-week exponential moving average (EMA) at around $76,000 emerging as a key support level.

Historically, BTC has used this moving average as a dynamic floor during bull markets, making its ability to hold above it crucial for maintaining its long-term uptrend.

In the weekly timeframe, the Relative Strength Index (RSI) dropped to 44.05, which had previously preceded strong BTC rebounds. Notably, similar RSI dips in March 2020 and June 2021 marked the beginning of significant price recoveries, reinforcing its relevance as a potential bounce zone.

However, if RSI slips into oversold territory, Bitcoin could see an extended decline toward the 0.786 Fibonacci retracement level at $57,691, a historically strong support area.

If the 50-week EMA fails to hold, Bitcoin could enter a deeper correction phase. The 200-week EMA at $48,070 acts as the ultimate line of defense in the current cycle.

However, if BTC finds support at the $75K–$78K range, it could signal a short-term bottom, potentially setting the stage for a recovery toward the $90K–$95K resistance zone.

Ethereum (ETH) Technical Analysis — More Pain Ahead

Ethereum breakdown has raised concerns of a prolonged correction, with technical indicators pointing to further downside toward $1,990 in the near term.

The breach of this critical trendline, which had acted as a support level since mid-2022, suggests a structural shift in Ethereum’s long-term market trajectory.

The breakdown coincides with ETH slipping below its 50-week exponential moving average (EMA) at around $2,920, further signaling weakness. The 200-week EMA at around $2,290 offered temporary support, but Ethereum’s inability to hold above this level has heightened the risk of an extended decline.

Ethereum’s Relative Strength Index (RSI) has dropped to 36.72, inching closer to oversold territory. Historically, RSI dips below 40 have led to short-term relief rallies, but the lack of immediate buying interest suggests that bearish momentum may persist.

The next major support level lies at the 0.236 Fibonacci retracement level at $1,993, a zone where Ethereum previously consolidated during the 2021–2022 market cycle.

If this level fails to hold, ETH could slide further toward $1,450, a level aligned with the 2022 bear market lows.