Crypto Futures Liquidations Hit $102M as Extreme Fear Grips Market

VADODARA, February 5, 2026 — Major cryptocurrency exchanges recorded $102 million in futures contract liquidations within a single hour, according to real-time data from CoinMarketCap and Bybit. This daily crypto analysis reveals a cascading sell-off that pushed Bitcoin below $66,200, with total liquidations reaching $1.504 billion over 24 hours. Market structure suggests this represents a classic liquidity grab amid Extreme Fear sentiment scoring 12/100.

Investigation: The Liquidation Cascade

On-chain forensic data from Glassnode confirms the liquidation spike occurred between 14:00 and 15:00 UTC. Per exchange reports, long positions accounted for approximately $68 million of the hourly total, while short positions saw $34 million liquidated. This imbalance indicates aggressive selling pressure overwhelming bullish leverage. The 24-hour liquidation total of $1.504 billion marks the highest single-day volume since the June 2024 correction, according to CoinMarketBuzz Intelligence Desk analysis.

Market Context & Historical Precedent

Historically, similar liquidation events preceded major trend reversals. In contrast to the 2021 bull market correction, current leverage ratios remain elevated at 25x average across major platforms. Underlying this trend, the Crypto Fear & Greed Index plunged to 12, entering Extreme Fear territory for the first time since January 2025. This mirrors the sentiment shift observed during the March 2023 banking crisis, when liquidations exceeded $2 billion daily.

Related developments include recent analysis of crypto futures liquidations hitting $112M and accumulation firms facing $25B in unrealized losses amid similar market conditions.

Technical Architecture & Price Action

Bitcoin's price action broke below the critical Fibonacci 0.618 support at $67,500, creating a Fair Value Gap (FVG) between $66,800 and $67,200. The Relative Strength Index (RSI) on the 4-hour chart printed at 28, indicating oversold conditions not seen since the post-merge volatility in September 2022. Volume profile analysis shows significant absorption at $66,000, aligning with the 200-day moving average. This technical setup resembles the Order Block formation that preceded the 2021 Q4 rally, as documented in Ethereum's official Pectra upgrade research.

By The Numbers

Why It Matters

This liquidation event matters because it tests the resilience of institutional liquidity cycles. According to Federal Reserve data on monetary policy, tightening cycles typically correlate with crypto leverage unwinds. The $1.5 billion in daily liquidations represents approximately 3.2% of total open interest, exceeding the 2.5% threshold that historically triggers volatility spikes. Retail market structure shows increased selling pressure from wallets holding less than 10 BTC, per UTXO age band analysis.

Expert Commentary

"The concentration of liquidations around the $66k level suggests algorithmic trading desks are targeting specific liquidity pools. This creates a gamma squeeze scenario where forced selling begets more selling. However, similar to the 2021 correction, these events often mark local bottoms when combined with oversold RSI readings." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios based on current data. First, a bullish reversal requires holding the $66,000 support and filling the FVG above $67,200. Second, a bearish continuation would involve breaking the 200-day MA and targeting the next Order Block at $63,500.

• Bullish Invalidation Level: $67,500 — The Fibonacci 0.618 resistance must be reclaimed to confirm trend reversal.
• Bearish Invalidation Level: $66,000 — This volume profile support must hold to maintain current market structure.

The 12-month institutional outlook remains cautiously optimistic. Historical cycles indicate that liquidation events of this magnitude often precede sustained rallies, as seen after the 2023 banking crisis. However, continued Federal Reserve hawkishness could extend the correction phase into Q2 2026.