Crypto Futures See $473M Liquidation in One Hour Amid Extreme Fear

VADODARA, February 5, 2026 — Major cryptocurrency exchanges liquidated $473 million in leveraged futures positions within a single hour. This daily crypto analysis reveals a market under severe stress. According to aggregated exchange data, total liquidations reached $1.435 billion over 24 hours. Bitcoin price action collapsed to $66,919, marking a 9.53% decline.

Investigation: The Liquidation Cascade

Exchange order books flashed red at 14:00 UTC. A concentrated sell-off triggered automated margin calls. Per the source data from Coinness, the $473 million liquidation event occurred in a 60-minute window. Long positions accounted for approximately 65% of the carnage. This indicates a classic bull trap failure.

Market structure suggests a liquidity grab below key moving averages. The 24-hour total of $1.435 billion confirms sustained deleveraging pressure. This event mirrors the May 2021 and November 2022 capitulation phases. Consequently, open interest across perpetual swaps plummeted by 18%.

Market Context & Historical Precedent

Historically, hourly liquidations exceeding $400 million precede volatile bounces or extended downtrends. The November 2022 FTX collapse saw a $1.1 billion hourly liquidation. That event marked a macro bottom. In contrast, today's sell-off lacks a single catastrophic catalyst.

Underlying this trend is a global liquidity crunch. Rising Treasury yields and a hawkish Federal Reserve stance pressure risk assets. The Federal Reserve's monetary policy dashboard shows persistent quantitative tightening. This drains capital from speculative crypto markets.

Related Developments:

• Bitcoin faces similar pressure on Upbit as Korean won liquidity dries up.
• Gemini's global retreat exemplifies the institutional liquidity grab underway.
• Ethereum founder Vitalik Buterin's recent $10M ETH sale adds to selling pressure.

Technical Architecture & Price Action

Bitcoin broke its 50-day Exponential Moving Average at $69,500. The next critical support is the 200-day EMA at $64,200. On-chain data indicates a major volume node at $66,000. This level must hold to prevent a test of the 0.618 Fibonacci retracement at $62,100.

RSI on the 4-hour chart plunged to 22. This signals oversold conditions. However, capitulation phases often see RSI dwell below 30 for extended periods. The order block between $67,800 and $68,500 now acts as immediate resistance. A reclaim above this zone is necessary for any bullish structure.

By The Numbers

Why It Matters

Mass liquidations flush out weak leverage. This resets the market for healthier rallies. However, they also destroy collateral. This can trigger forced selling in spot markets. Institutional liquidity cycles are now in a risk-off phase. Retail market structure is fragile.

Evidence lies in funding rates. They turned deeply negative across major exchanges. This incentivizes short positions. , the options market shows a surge in put buying. The 25-delta skew metric hit its most negative level in six months. Traders are paying a premium for downside protection.

Expert Commentary

This liquidation event is a necessary purge. Market structure suggests excessive leverage built up during the Q4 2025 rally. The $1.4 billion 24-hour unwind creates a cleaner technical picture. However, the Extreme Fear reading of 12 indicates maximum pain. We are watching the $66k Bitcoin level as a critical bellwether for broader crypto sentiment.

— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from the current market structure.

• Bullish Invalidation Level: $68,500. A sustained break above this former order block resistance would invalidate the immediate bearish structure and target a move back toward $72,000.
• Bearish Invalidation Level: $64,200. A daily close below the 200-day Exponential Moving Average at this level would confirm a deeper corrective phase, opening a path to test $60,000 support.

The 12-month institutional outlook remains cautiously constructive. Historical cycles suggest that periods of Extreme Fear and mass liquidations often precede significant rallies. For the 5-year horizon, this deleveraging event strengthens the market's foundation by removing unstable, over-leveraged positions.