Crypto Markets Edge Higher as Bitcoin, Ether Gain Amid Heavy Liquidations
Monday, 2 February 2026 –
A surprisingly strong U.S. manufacturing report lifted risk appetite on the evening of Monday, nudging the broader crypto market upward. Bitcoin and Ether posted modest gains, while the sector endured a wave of leveraged liquidations that underscored lingering volatility.
Price Action
- Bitcoin (BTC) traded near $78,340, up roughly 2 % over the previous 24 hours.
- Ethereum (ETH) climbed to about $2,340, a gain of 1.5 %.
- Other large‑cap assets also rallied: BNB rose 2.3 % to $772, XRP climbed 1.8 % to $1.62, and Solana (SOL) recovered 3.5 % to $104.73 after a recent dip.
Total market capitalization reached ≈ $2.72 trillion, a 2.3 % increase for the day, with 24‑hour trading volume hovering around $223 billion.
Winners and Losers
- Top gainers: MYX Finance (+13.3 %), MemeCore (+11.1 %), and Hyperliquid (+10.6 %).
- Biggest decliners: Monero (‑6.7 %), Pumpfun (‑5.0 %), and Rain (‑4.0 %).
These moves reflect a mixed sentiment, where speculative tokens can still swing sharply even as blue‑chip cryptocurrencies stabilize.
Liquidations
Leveraged positions faced a sizable unwind. According to data from CoinGlass, ≈ $729 million in contracts were liquidated in the last 24 hours:
| Type | Approx. Value |
|---|---|
| Long liquidations | $453 million |
| Short liquidations | $276 million |
| Total traders liquidated | 176,301 |
Ethereum absorbed the largest share of the fallout (≈ $266 million), followed by Bitcoin (≈ $233 million). The predominance of long liquidations suggests that many traders were caught off‑guard by the brief price rally, flipping positions as the market corrected.
ETF Flows
ETF activity remained uneven:
- Bitcoin spot ETFs recorded net outflows of $509.7 million.
- Ethereum spot ETFs posted outflows of $252.9 million.
- Contrastingly, XRP spot ETFs logged a modest net inflow of $16.8 million, while Solana spot ETFs saw outflows of $11.2 million.
CoinShares’ weekly fund‑flows report signaled a continued decline in institutional appetite, with $1.7 billion net outflows over the past week, pushing year‑to‑date ETF flows into negative territory and trimming assets under management by $73 billion from the October 2025 peak.
Macro backdrop
The market’s short‑term bounce coincided with a stronger‑than‑expected ISM Manufacturing PMI release. The index rose to 52.6 % for January, up 4.7 percentage points from December’s adjusted 47.9 % reading. The report highlighted a revival in new orders—now at 57.1 %, the highest level since early 2022—indicating that the U.S. manufacturing sector has expanded for the 15th consecutive month.
Analysts interpret the PMI uplift as an early‑year catalyst for risk‑on assets, providing a modest boost to crypto valuations despite the sector’s broader headwinds.
Analysis
- Risk‑on sentiment is fragile – The manufacturing data offered a brief lift, but the sizable liquidation volume shows that leveraged participants are still highly sensitive to price swings.
- Spot ETF outflows signal waning institutional enthusiasm – Continuous net withdrawals from Bitcoin and Ethereum ETFs suggest that traditional investors remain cautious, potentially limiting the upside for larger‑cap tokens.
- Alt‑coin resilience – While the market’s core assets recovered, select alt‑coins (e.g., Solana, BNB) demonstrated enough momentum to offset recent losses, indicating pockets of renewed speculative interest.
- Macro data remains a primary driver – Positive macro indicators, such as the ISM PMI, can temporarily buoy crypto markets, but sustained price appreciation will likely depend on broader economic stability and clearer regulatory signals.
Key Takeaways
- Bitcoin and Ethereum posted modest gains amid a risk‑on bounce tied to stronger U.S. manufacturing data.
- Over $700 million in leveraged positions were liquidated, with Ethereum absorbing the largest share.
- ETF outflows continue for both Bitcoin and Ethereum, reflecting a slowdown in institutional inflows.
- Positive macro news (ISM Manufacturing PMI at 52.6 %) helped lift sentiment but may not be enough to offset underlying volatility.
Investors should monitor both macroeconomic releases and on‑chain metrics, as the interplay between traditional risk sentiment and crypto‑specific dynamics will likely dictate market direction in the coming weeks.
Source: https://thedefiant.io/news/markets/crypto-markets-edge-higher-as-bitcoin-ether-gain-despite-heavy-liquidations
