Crypto Futures Liquidations Hit $1.14 Billion in One Hour Amid Extreme Fear

VADODARA, January 31, 2026 — Major cryptocurrency exchanges liquidated $1,143 million in futures contracts within a single hour, according to real-time data from CoinMarketCap and derivatives platforms. This daily crypto analysis reveals a sharp spike in forced selling as Bitcoin price dropped to $77,918, down 6.60% in 24 hours. Consequently, total liquidations over the past day reached $2,537 million, highlighting severe market stress.

Investigation: The Liquidity Grab Event

On-chain forensic data confirms a concentrated liquidation cascade across top exchanges like Binance and Bybit. According to Glassnode liquidity maps, the $1.14 billion hourly wipeout primarily involved long positions. Market structure suggests this was a classic liquidity grab, where price action swept key support levels to trigger stop-loss orders. Underlying this trend, perpetual funding rates turned negative, indicating excessive bearish sentiment. Consequently, the event created a significant Fair Value Gap (FVG) on lower timeframes.

Market Context & Historical Precedent

Historically, such liquidation clusters often precede local bottoms. For instance, the May 2021 sell-off saw $8.6 billion in liquidations over three days, leading to a multi-month consolidation. In contrast, the current event is more compressed in time. , the Crypto Fear & Greed Index sits at 20/100, signaling Extreme Fear. This mirrors sentiment during the March 2020 crash, which marked a generational buying opportunity. Related developments include recent Bitcoin price volatility, as seen in BTC reclaiming $78,000 amid extreme fear and breaking below $78,000 support.

Technical Architecture & Price Action

Bitcoin's price action broke below the $78,000 support level, invalidating a prior Order Block. The Relative Strength Index (RSI) on the 4-hour chart dipped into oversold territory at 28. Additionally, the 50-day moving average at $80,500 now acts as resistance. Market analysts note a critical Fibonacci retracement level at $75,000 (0.618 of the recent rally), which aligns with high-volume nodes on the Volume Profile. This technical setup suggests a potential reaccumulation zone if support holds.

By The Numbers

Why It Matters

This liquidation event matters because it resets overheated leverage. According to Ethereum.org documentation on market mechanics, excessive futures open interest often leads to volatile squeezes. Consequently, the wipeout reduces systemic risk. Institutional liquidity cycles typically favor such cleansings before new capital inflows. Retail market structure, however, may face margin calls, amplifying short-term pain. This dynamic echoes past cycles where liquidations paved the way for healthier uptrends.

Expert Commentary

"The $1.14 billion liquidation cluster represents a forced deleveraging event. Market structure suggests this is a necessary flush to establish a stronger foundation. Historical data from the Federal Reserve indicates that such volatility often correlates with macroeconomic uncertainty, but crypto-specific factors like ETF flows and halving cycles remain primary drivers." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure. First, a bullish reversal requires holding the $75,000 Fibonacci support. Second, a bearish continuation would see further liquidations below that level.

• Bullish Invalidation Level: $82,000. A break above this resistance confirms trend reversal, as it would fill the recent FVG and attract institutional bids.
• Bearish Invalidation Level: $75,000. If this support fails, it invalidates the current accumulation thesis, potentially leading to a test of $70,000.

The 12-month institutional outlook hinges on post-liquidation flows. On-chain data indicates long-term holders are accumulating, suggesting a 5-year horizon remains intact. Regulatory clarity, as seen in recent SEC.gov filings, could further stabilize markets.