Crypto Futures Liquidations Hit $113M Hourly Amid Extreme Market Fear

VADODARA, February 5, 2026 — Major cryptocurrency exchanges recorded $113 million in futures contract liquidations during a single hour, according to real-time market data. This daily crypto analysis reveals a broader 24-hour liquidation total exceeding $1.061 billion, occurring as Bitcoin price action tests the $69,373 level amid an Extreme Fear market environment.

Investigation: The Liquidation Cascade

Market structure suggests a concentrated leverage flush across major trading platforms. The $113 million hourly figure represents a significant acceleration from typical baseline liquidation volumes. Consequently, this event points to a rapid deleveraging cycle, likely triggered by Bitcoin's 8.71% 24-hour decline. Underlying this trend, the cumulative 24-hour liquidation of $1.061 billion indicates sustained selling pressure and margin call clustering.

According to on-chain data from derivatives tracking platforms, these liquidations predominantly affected long positions. This pattern aligns with a classic bearish squeeze scenario where over-leveraged bulls face forced exits. The source data from major exchange feeds confirms the scale and immediacy of the event.

Market Context & Historical Precedent

Historically, liquidation clusters of this magnitude often precede heightened volatility phases. In contrast to isolated liquidations, a $1 billion+ 24-hour total suggests systemic leverage reduction across the market. This mirrors patterns observed during the May 2021 and November 2022 corrections, where similar liquidation spikes marked local capitulation events.

, the current Extreme Fear sentiment, scoring 12/100 on the Crypto Fear & Greed Index, provides critical context. Market analysts note that such sentiment extremes frequently coincide with technical reversals or accelerated trends. The interplay between mass liquidations and sentiment creates a feedback loop that exacerbates price movements.

Related Developments:

• Bitcoin's capitulation indicators recently hit multi-year highs, signaling elevated volatility risk.
• Prominent bearish warnings have emerged comparing current conditions to past crashes.
• Previous reports documented similar hourly liquidation thresholds amid fear-driven markets.

Technical Architecture & Price Action

Bitcoin's price action at $69,373 sits near critical technical junctures. Market structure suggests immediate support at the Fibonacci 0.618 retracement level near $68,500, derived from the recent swing high. A breach below this level would invalidate the current bullish higher-timeframe structure and potentially target the $65,000 zone.

Consequently, the $113 million liquidation event likely originated from this key support test. Order flow analysis indicates a liquidity grab below $70,000, triggering stop-loss cascades. The Relative Strength Index (RSI) on daily charts approaches oversold territory, which historically precedes either a bounce or continuation of the trend.

Institutional frameworks, such as those outlined by the Federal Reserve's monetary policy reports, influence macro liquidity conditions affecting crypto leverage. Tighter financial conditions can precipitate such deleveraging events.

By The Numbers

Why It Matters

This liquidation event matters because it directly impacts market liquidity and volatility profiles. Forced selling from liquidations removes buy-side liquidity, creating Fair Value Gaps (FVGs) that price must later fill. Consequently, institutional traders monitor these events for potential entry points once liquidation cascades subside.

, retail market structure often weakens post-liquidation, as over-leveraged participants exit. This can lead to reduced speculative activity and more stable price discovery. Historical cycles suggest that such events frequently mark local bottoms or acceleration points in trends, depending on broader macro conditions.

Expert Commentary

"The $113 million hourly liquidation is a clear signal of leverage compression. Market structure suggests this is a necessary cleanse of weak hands, but the $1.061 billion 24-hour total indicates systemic stress. Our models show that similar events in 2022 preceded 15-20% volatility expansions. The key watch level is Bitcoin's hold above $68,500." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary technical scenarios based on current liquidation dynamics and support levels.

• Bullish Invalidation Level: $72,500. A sustained break above this resistance would confirm the liquidation flush is complete and signal a trend reversal, potentially targeting the $75,000 region.
• Bearish Invalidation Level: $68,500. A daily close below this Fibonacci support level would invalidate the current bullish structure, opening a path toward $65,000 and potentially triggering further liquidations.

The 12-month institutional outlook hinges on whether this event represents a capitulation bottom or a mid-trend correction. On-chain data indicates that large holders (whales) have been accumulating near these levels, suggesting some see value. However, macro factors like interest rate trajectories will ultimately dictate the 5-year horizon. The Federal Reserve's upcoming policy decisions, as tracked on their official site, remain a critical variable.