Crypto Futures Liquidations Hit $100M Hourly Amid Extreme Market Fear

VADODARA, February 5, 2026 — Major cryptocurrency exchanges recorded $100 million in futures contract liquidations during the past hour, according to real-time data from derivatives tracking platforms. This daily crypto analysis reveals a cascading deleveraging event that has wiped $950 million from leveraged positions over 24 hours, coinciding with Bitcoin's sharp decline below the $70,000 psychological threshold.

Investigation: The Liquidation Cascade Mechanics

Exchange order books show concentrated liquidation clusters between $69,800 and $70,200. Market structure suggests these levels acted as a massive order block for leveraged long positions. Consequently, the initial breach triggered automated margin calls across multiple platforms. According to on-chain data from Glassnode, the liquidations primarily affected perpetual swap contracts with leverage ratios between 10x and 25x.

Underlying this trend, the hourly $100 million liquidation represents approximately 0.14% of the total open interest in crypto derivatives markets. This percentage exceeds typical volatility thresholds, indicating forced selling pressure. , the 24-hour total of $950 million marks the highest liquidation volume since November 2025, when similar deleveraging occurred during the EIP-4844 implementation volatility.

Market Context & Historical Precedent

Historically, liquidation events of this magnitude precede significant trend reversals or accelerated corrections. The March 2024 cycle saw $1.2 billion in liquidations over 24 hours before Bitcoin established its $56,000 support floor. In contrast, the current event occurs amid broader macroeconomic headwinds, including rising Treasury yields and equity market correlation spikes.

Related developments include increased Bitcoin correlation with software stocks hitting 0.73 and miner sell pressure intensifying as prices drop below production costs. These factors compound the liquidation pressure, creating a feedback loop of selling.

Technical Architecture & Price Action

Bitcoin's price action shows a clear break below the 50-day exponential moving average at $71,200. The Relative Strength Index (RSI) on 4-hour charts plunged to 28, entering oversold territory. Market structure suggests the current move invalidated the previous bullish order block at $72,500, creating a Fair Value Gap (FVG) between $69,000 and $70,500.

Critical Fibonacci retracement levels from the 2025 low of $58,000 to the all-time high of $98,000 provide key reference points. The 0.382 level at $72,800 failed to hold, while the 0.618 level at $68,500 now serves as the next major support. Volume profile analysis indicates high trading activity at this level during previous accumulation phases.

By The Numbers

Why It Matters

Futures liquidations directly impact market liquidity and volatility. The $100 million hourly figure represents a liquidity grab by market makers and algorithmic traders. This activity often precedes short-term price stabilization or further downside, depending on spot market absorption. Institutional liquidity cycles typically see reduced positioning after such events, as documented in Federal Reserve research on market microstructure.

Retail market structure suffers most during these events. Leveraged positions get wiped, creating capitulation signals. Consequently, the market resets at lower leverage levels, potentially setting the stage for healthier accumulation. The current extreme fear reading of 12/100 historically correlates with intermediate-term buying opportunities, though timing remains precarious.

Expert Commentary

"The liquidation cascade reflects excessive leverage built during the recent rally above $90,000. Market participants overestimated the sustainability of that move. Now, we're seeing the mechanical unwinding of those positions. The key watchpoint is whether spot buyers emerge at these levels to absorb the selling pressure." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary technical scenarios based on current liquidation patterns and on-chain metrics.

• Bullish Invalidation Level: $72,800 (Fibonacci 0.382 resistance). A sustained break above this level would invalidate the current bearish structure and suggest the liquidation event was a shakeout.
• Bearish Invalidation Level: $68,500 (Fibonacci 0.618 support). A breakdown below this level would confirm further downside targeting the $65,000 volume node.

The 12-month institutional outlook remains cautiously optimistic despite short-term volatility. Historical cycles show that deleveraging events often precede extended consolidation periods before resuming primary trends. The 5-year horizon still favors Bitcoin's structural adoption curve, particularly as institutional infrastructure matures.