Published: February 2, 2026
On February 1, 2026 — quickly dubbed “Black Sunday II” by traders — cryptocurrency futures markets suffered one of the largest single-day liquidation events in history: $2.2 billion in positions forcibly closed within 24 hours. Ethereum dominated the carnage with $961 million liquidated, Bitcoin followed at $679 million, and Solana ranked third with $168 million. Over 335,000 traders were wiped out, with long positions accounting for ~80–85% of losses according to Coinglass and Bybit data. The cascade pushed Bitcoin briefly below $76,000, Ethereum under $2,800, and triggered broad altcoin weakness — all while spot market capitalization dropped toward $2.66 trillion.
This article explains exactly what happened, the mechanics behind the wipeout, exchange-level breakdowns, historical comparisons, the biggest trader mistakes, and practical strategies to avoid being on the wrong side of the next cascade.
Timeline of the February 1, 2026 Liquidation Cascade
| Time (UTC) | BTC Price Range | Cumulative Liquidations | Key Trigger / Note |
|---|---|---|---|
| Feb 1, 00:00–06:00 Asia | $82,800 → $80,200 | ~$420M | Weekend carry-over + thin liquidity |
| 06:00–12:00 Asia/US overlap | $80,200 → $77,400 | ~$1.18B (peak hour ~$380M) | Stop cascades + margin calls |
| 12:00–18:00 US session | $77,400 → $76,100 (low) | ~$2.2B total | Macro headlines + algorithmic selling |
| 18:00–00:00 | $76,100 → $78,900 | Stabilizing | Dip-buyers + short covering |
The most violent hour occurred during the Asia/US session overlap — a classic time for liquidity vacuums and cascading stops.
Breakdown by Asset – Top 5 Liquidated Tokens
| Asset | Liquidation Volume | % of Total | Price Low (Feb 1) | Long vs Short Ratio |
|---|---|---|---|---|
| Ethereum (ETH) | $961 million | ~44% | ~$2,780 | 82% Long / 18% Short |
| Bitcoin (BTC) | $679 million | ~31% | ~$76,100 | 78% Long / 22% Short |
| Solana (SOL) | $168 million | ~8% | ~$138 | 75% Long / 25% Short |
| XRP | $89 million | ~4% | ~$1.81 | 69% Long / 31% Short |
| Others (DOGE, ADA, AVAX, etc.) | $303 million | ~13% | — | — |
Longs were overwhelmingly dominant — a classic sign of late-cycle euphoria being washed out.
What Actually Causes These Massive Liquidation Events?
Liquidations happen when a trader’s margin falls below the maintenance requirement, forcing the exchange to automatically close the position at market price. With leverage commonly 10×–100×, even modest price moves become catastrophic:
- A 5% adverse move on 20× leverage = 100% wipeout
- Cascades occur when one large liquidation pushes price further → triggers more stops → more liquidations
- Weekend/early-week Asia sessions have lower liquidity → smaller moves cause outsized effects
Triggers for Feb 1, 2026:
- Macro overhang: Fed “higher-for-longer” narrative, tariff threats
- ETF outflow momentum carrying over from late January
- Technical break of $84k–$85k cluster → algorithmic stop-hunting
- High open interest + over-leveraged longs from December/January rally
Lessons from Black Sunday II – How to Avoid Being Liquidated
- Use Low Leverage (3–5× max) — A 10× position on $10,000 needs only $1,000 margin but liquidates on ~5–10% adverse move. Lower leverage gives breathing room.
- Always Set Stop-Losses — Place hard stops 2–5% below entry or at key technical levels to exit before margin calls.
- Monitor Liquidation Price — Every major exchange shows exact liquidation price for open positions — calculate it before entering.
- Keep Extra Margin Buffer — Maintain 20–50% excess collateral during high-volatility periods to avoid forced liquidation on small wicks.
- Hedge or Diversify — Pair directional bets with opposing positions or use options/futures spreads to cap downside.
- Avoid Weekend Overexposure — Reduce position size or flatten entirely during low-liquidity periods (weekends, holidays, Asia session gaps).
Trading Outlook After the $2.2B Wipeout
Current setup (early Feb 2, 2026):
- BTC ~$79,000–$80,500 after partial bounce
- RSI (daily) deeply oversold → historically strong rebound zone
- Fear & Greed Index ~20–25 (Extreme Fear) → capitulation signal
- Exchange balances still declining → long-term holders accumulating
Scenarios:
- Bear continuation: Break below $78k → retest $74k–$76k
- Base case: $78k–$85k range forms local bottom → choppy recovery
- Bull case: Quick reclaim of $85k + ETF inflow reversal → new leg toward $95k+
Trade the Bounce or Hedge on Tapbit
- Sign Up on Tapbit (0% maker fees)
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- Capitulation buy: DCA BTC/USDT on dips toward $78k–$79k
- Relief rally: Long BTC/USDT perpetuals on $85k reclaim (20–50x, isolated)
- Hedge: Long XAU/USDT perpetuals if risk-off continues
- Risk control: Max 1–2% account risk per trade; trailing stops below lows
FAQs – $2.2B Crypto Liquidations February 1, 2026
What caused the $2.2 billion liquidation event?
Macro overhang (Fed pause, tariff fears), persistent ETF outflows, technical break of $84k–$85k, high leverage from prior rally, and weekend/Asia thin liquidity created a perfect cascade.
Which asset saw the most liquidations?
Ethereum led with ~$961 million (~44% of total), followed by Bitcoin $679M (~31%) and Solana $168M (~8%). Long positions dominated (~80–85%).
Is this the bottom for Bitcoin?
$78k–$79k is a high-volume capitulation zone. Holding here + ETF inflow reversal would signal local bottom. Break below $78k risks $74k–$76k.
How can traders avoid liquidation?
Use 3–5× leverage max, set hard stop-losses, keep 20–50% margin buffer, monitor liquidation price, avoid weekend overexposure, and hedge directional bets.
Conclusion – Lessons from Black Sunday II
The $2.2 billion liquidation event on February 1, 2026 — the largest single-day wipeout since October 2025 — was a textbook leverage purge: macro caution + ETF outflows + technical break + thin liquidity + extreme leverage = cascade. Ethereum ($961M) and Bitcoin ($679M) bore the brunt, with longs accounting for ~80–85% of losses. While short-term pain is severe, historical patterns show these extremes often mark local bottoms — especially when combined with oversold RSI, extreme fear readings, and long-term holder accumulation.
Trade Bitcoin & crypto volatility on Tapbit:
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Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. Liquidation events and technical patterns do not guarantee future results. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
