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Before diving into the specifics of the February crash, it's vital to understand the landscape of the crypto market before the event. A variety of platforms, including Twitch, TikTok, YouTube, and Rumble, reported spikes in traffic as creators discussed ongoing market volatility. The cryptocurrency community had long been bracing for fluctuations due to economic pressures, especially over the first two quarters of 2025.
Despite North America being in a recession, many traders had remained optimistic, envisioning potential growth amid crisis. However, the optimism soon gave way to panic, leading to an alarming wave of liquidations that saw over $2 billion vanish within mere hours, predominantly affecting long positions—that is, trades that expected prices to rise.