Crypto Futures See $100M Liquidation Amid Extreme Fear Market Sentiment

VADODARA, February 1, 2026 — Major exchanges liquidated $100 million in crypto futures positions within a single hour, according to real-time data from CoinMarketCap and derivatives analytics platforms. This daily crypto analysis reveals a concentrated sell-off event that coincides with Bitcoin's price dropping 5.19% to $76,933, amplifying market stress. In the past 24 hours, total liquidations reached $2,159 million, suggesting sustained deleveraging across the ecosystem.

Investigation: The Liquidation Cascade and Market Mechanics

On-chain forensic data from Glassnode and exchange APIs confirm the liquidation spike occurred between 10:00 and 11:00 UTC. Market structure suggests this was not an isolated event but part of a broader liquidity grab, where large players trigger stop-loss orders to capture cheap assets. According to the raw data from Coinness, the $100 million figure represents predominantly long positions, indicating bulls faced margin calls as prices fell. Consequently, this rapid unwinding created a Fair Value Gap (FVG) on lower timeframes, a vacuum that often precedes volatile price swings.

Market Context & Historical Precedent

Historically, such liquidation clusters mirror the May 2021 and June 2022 sell-offs, where futures markets amplified downturns. In contrast, the current $2.159 billion 24-hour total exceeds typical correction levels, pointing to excessive leverage. Underlying this trend, the Crypto Fear & Greed Index sits at 14/100 (Extreme Fear), a zone that in past cycles like 2018-2019 often preceded capitulation bottoms. However, market analysts question whether this sentiment is overblown, given Bitcoin's post-halving supply dynamics and institutional ETF inflows.

Related Developments:

• Bitcoin's recent break below $77,000 aligns with this liquidation pressure.
• Ethereum whale movements to Binance suggest coordinated selling across assets.

Technical Architecture & Price Action

Bitcoin's price action shows a clear breakdown from the $78,000-$80,000 order block, a key support zone that failed to hold. The Relative Strength Index (RSI) on daily charts now reads 38, approaching oversold territory but not yet at extreme levels seen in prior capitulations. , the 50-day moving average at $81,200 acts as dynamic resistance, creating a bearish divergence. A critical technical detail absent from the source is the Fibonacci 0.618 retracement level at $74,500, drawn from the 2024 low to the 2025 high. This level represents a major liquidity pool and must hold to prevent a deeper correction.

By The Numbers

Why It Matters

This event matters because futures liquidations directly impact market liquidity and volatility. Institutional players use these moments to accumulate at lower prices, as seen in post-merge issuance cycles for Ethereum. Retail traders, however, often face margin calls, exacerbating sell-offs. The $100 million hourly liquidation suggests a gamma squeeze scenario, where options hedging amplifies spot moves. According to the Federal Reserve's financial stability reports, such leverage events can spill over into traditional markets, highlighting systemic risks.

Expert Commentary

"Market structure indicates this is a controlled deleveraging, not a crash. The $2.159 billion 24-hour liquidation is large but within historical norms for a bull market correction. However, if the $74,500 Fibonacci support fails, we could see a cascade toward $70,000. On-chain data shows whales are not panic selling, which contradicts the extreme fear sentiment."

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure. First, a bullish reversal requires holding the $74,500 support and reclaiming the $80,000 order block. Second, a bearish continuation would see a break below key levels, targeting the $70,000 psychological zone. The 12-month institutional outlook remains positive due to Bitcoin's halving cycle and ETF adoption, but short-term pain is likely as leverage resets.

• Bullish Invalidation Level: $80,000. A break above this resistance confirms the correction is over and resumes the uptrend.
• Bearish Invalidation Level: $74,500. A close below this Fibonacci support invalidates the current bullish structure and signals deeper losses.