Recently, the shift toward a “risk-off” sentiment is largely driven by a more hawkish U.S. Federal Reserve, with the potential for higher-for-longer interest rates strengthening the U.S. Dollar. As a result, the dollar gains strength from $95.56 to $97.80 when writing. Since DXY rose, capital has typically exited speculative assets like Bitcoin and Ethereum and that’s why liquidations has increased in February, as at times like these markets favor safer, yield-bearing government bonds. That’s why TOTAL, which represents the entire crypto market cap, took a deeper hit this time, falling to $2.28 trillion.
Whereas TOTAL is at risk if DXY continues to pump around 10%-11%, which could push it to $110 by July 2026, it could harm TOTAL badly, pushing it down 33% to around $1.5 trillion. This event is at higher odds because DXY is supported by the most reliable support, a 200-month EMA, and a decline in the crypto market seems to be intensifying.
In February, the decline intensified as global liquidity tightened significantly amid disappointing economic data from major markets, leading to a broader sell-off in the technology sector. Since cryptocurrencies remain highly correlated with tech stocks, the Nasdaq’s February decline triggered a massive wave of liquidations across the crypto market, a trend that could worsen over time.
Geopolitical tensions and regulatory uncertainty have further spooked institutional investors, causing a sharp reversal in Spot ETF inflows. This lack of institutional support, combined with a breach of key technical support levels, has created a “perfect storm” that forced the entire sector into a deep correction.
The February Fall Intensified With 24-hour Liquidation
According to CoinGlass data, over the past 24 hours, 302,435 traders were liquidated, totaling $1.43 billion in liquidations. Across 7 exchanges, data shows over $100 million in liquidations; Bybit saw the most, at $338.54 million, and Hyperliquid was second, at $335.78 million.
The latest liquidations data show that top blue-chip coins were hit the hardest.
The top 3 cryptocurrencies with the most liquidations were BTC ($736 million), ETH ($337 million), and SOL ($77 million). And the weighted sentiment for this trio has fallen sharply, and most people are talking negatively about these assets.
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