Crypto Market Sees $1.8 Billion in Liquidations as $5 Trillion Is Wiped From Global Markets

Mohammedia – The cryptocurrency market saw its largest liquidation event of 2026 this week, with about $1.8 billion in leveraged trades closed in less than two days, according to market data.

The selloff took place alongside a wider decline across US financial markets. An estimated $5 trillion was wiped out across equities, metals, and digital assets during the same period.

Data from TradingView show that the total cryptocurrency market value fell roughly 7%, or about $200 billion, as January came to an end. Most of the losses came from leveraged positions. Around 95% of the liquidations were from long trades, which are bets that prices will rise.

The drop followed nearly eight weeks of relatively flat trading in digital assets. While crypto prices moved lower first, the decline quickly spread beyond the sector. Major US stock indexes and commodities also fell, pointing to a broader pullback across markets.

AMBCrypto noted that the latest move differs from previous crypto-focused downturns. In October, the crypto market declined for seven straight weeks and lost around $1 trillion in value. During that time, gold prices rose about 7% and ended the fourth quarter up 12%, while cryptocurrencies fell nearly 24%.

That earlier decline came as markets reacted to speculation around index-related changes involving MicroStrategy, a company known for holding large amounts of bitcoin.

The current selloff unfolded despite several developments that had reduced policy uncertainty. Earlier this month, US lawmakers passed legislation laying out a framework for cryptocurrency market regulation. Separately, a potential US government shutdown was avoided.

Markets were also watching signals from the Federal Reserve. After President Donald Trump commented on the timing of his decision for the next Fed chair, betting odds tracked by Polymarket showed the chances of Kevin Warsh being selected rising to 83%. No official announcement has been made.

Despite these factors, digital assets declined alongside stocks and commodities. Market data indicate that selling pressure was spread across asset classes rather than concentrated in cryptocurrencies.

Trading volumes rose during the downturn as prices moved lower. Investors are now watching economic data and policy developments as markets head into February.