Bitcoin Crashes Below $63K in Worst Day Since FTX Collapse as $1.5B Liquidated and XRP Plunges Hard

Bitcoin dropped over 10 percent to $63,000, the largest decline since the FTX meltdown. XRP fell by 19%, and $1.5 billion was wiped out through crypto markets.

Friday U.S. trading saw Bitcoin dip below $63,000, the biggest crypto drop of more than 10% in a day, the worst single-day decline since the fall of FTX in November 2022.  

The crash struck lows of $63,000, a record low since October 2024. It is currently trading at about 50 percent of its all-time high of $126,000. Feb 5 may be one of the worst trading days in the history of Bitcoin.  

According to CoinMarketCap on X, Bitcoin erased every single profit made since Nov 2021. It posted: Bitcoin has wiped out everything since it was up since its last all-time high of $69,000 in November 2021. Within the tweet, it was also mentioned that there were over 1.5billion dollars in total liquidations in under 24 hours.

Source: CoinMarketCap 

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Thin Liquidity Fuels Massive Liquidations

The primary reason is thin liquidity, according to Adrian Fritz, the chief investment strategist at 21shares. Such minor sell pressure, he says, can be the trigger of numerous liquidations. Small sales can increase price fluctuations in weak markets.  

Fritz cautioned that a bottom has not yet appeared. He mentions the $58,000 -60,000 zone as a prominent support, and all that matches with the 200-day moving average and realized price of Bitcoin.  

The crash also had an impact on other assets. Silver fell 14% during the day. Gold slipped over 2% to $4,850. Both Nasdaq and the S&P 500 fell by 1%.  

XRP and Altcoins Face Brutal Losses

In the same 24-hour period, XRP went down by 19 percent, doing worse than most other large-cap cryptocurrencies.  

Almost every major token or meme coin fell by over 10% in 24 hours. Crypto stocks reflected the sell-off. Coinbase, Galaxy, Strategy, and BitMine all declined by more than 10 percent. Bitfarms, CleanSpark, Hut 8, and Mara are among the miners that registered the same losses.  

Bitcoin fell along with software stocks. The iShares Expanded Tech-Software ETF lost over 3%, and the fund has lost 24% this year.  

According to Fritz, XRP lacks a distinct trigger that exerts additional pressure. However, technical analysis indicates low levels of support. The larger altcoin market is unpredictable as traders seek a bottom.

The post Bitcoin Crashes Below $63K in Worst Day Since FTX Collapse as $1.5B Liquidated and XRP Plunges Hard appeared first on Live Bitcoin News.