Over 730,000 traders faced liquidations, with Ether leading the market plunge that resulted in more than $2.24 billion being liquidated from cryptocurrency markets within 24 hours. This surge in liquidations was fueled by growing geopolitical tensions related to tariff wars. Ether saw the highest combined liquidations, surpassing $609.9 million, with a notable single liquidation order on Binance for an ETH/BTC pair amounting to $25.6 million. About 36.8% of total liquidations happened on Binance, while long traders lost $1.88 billion, indicating a prevalent expectation of a bull run. The announcement of tariffs by US President Donald Trump contributed to a steep drop in prices across major altcoins, including ETH and Cardano. Joe Consorti, an analyst at Theya, pointed out that this liquidation event exceeded those witnessed during the COVID-19 pandemic and the FTX collapse. As of February 3, the crypto market sentiment was categorized as 'fear', suggesting growing investor anxiety, although historically such sentiment has often presented buying opportunities.

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