Crypto Futures Liquidations Hit $353M in One Hour as Extreme Fear Grips Market

VADODARA, February 5, 2026 — Major cryptocurrency exchanges recorded $353 million in futures contract liquidations during a single hour of intense selling pressure. This daily crypto analysis reveals a market structure under severe stress. According to exchange data, total liquidations reached $1.842 billion over the preceding 24-hour period. Bitcoin price action collapsed to $63,827, marking a 13.12% decline.

Investigation: The Liquidation Cascade Unfolds

Exchange order books flashed red between 10:00 and 11:00 UTC. Per CoinMarketCap and Bybit data, the $353 million liquidation event primarily targeted long positions. Market structure suggests a classic liquidity grab below key technical levels. Consequently, forced selling amplified the downward move. The 24-hour total of $1.842 billion indicates sustained deleveraging pressure.

This event mirrors previous capitulation phases. For instance, the May 2021 flash crash saw similar hourly liquidation spikes. In contrast, today's volume profile shows more concentrated selling. On-chain forensic data confirms whale wallets moving assets to exchanges pre-crash. This suggests coordinated exit liquidity hunting.

Market Context & Historical Precedent

Historically, liquidation clusters above $300 million often mark local bottoms. The 2022 bear market witnessed multiple such events. However, current macro conditions differ. The Federal Reserve's latest policy statements on interest rates have tightened liquidity. This creates a hostile environment for leveraged crypto speculation.

, regulatory uncertainty persists. Senator Mark Warner recently demanded clearer crypto legislation amid market turmoil. This political pressure adds to selling catalysts. Related developments include contradictory signals where Bitcoin briefly rallied above $68,000 despite Extreme Fear readings. Additionally, Bitfinex BTC margin longs recently hit a two-year high just before this price drop.

Technical Architecture & Price Action

Bitcoin broke below its 50-day exponential moving average at $66,200. The next critical support sits at the 0.618 Fibonacci retracement level of $61,500. This level aligns with a major volume node on the Volume Profile indicator. A breach here would open the path to $58,000.

Market structure suggests the liquidation event created a Fair Value Gap (FVG) between $65,000 and $67,500. This gap will likely act as future resistance. The Relative Strength Index (RSI) on the 4-hour chart plunged to 22, indicating oversold conditions. However, in high-leverage environments, oversold can become more oversold.

By The Numbers

Why It Matters

Liquidation events reset leverage across the system. They force weak hands out and create cleaner price discovery. However, excessive liquidations can trigger cascading margin calls. This threatens exchange stability and broader market liquidity. According to Ethereum.org documentation on blockchain finality, such volatility can delay transaction confirmations.

Institutional players monitor these metrics closely. Hedge funds use liquidation data to identify market exhaustion points. Retail traders often get caught on the wrong side. The current Extreme Fear reading suggests maximum panic. Historically, this precedes potential reversal zones—but timing remains uncertain.

Expert Commentary

"The $353 million liquidation cluster represents a classic deleveraging event. Market structure suggests we're testing critical support levels. A break below $61,500 would invalidate the current bullish higher-timeframe structure and likely trigger another $2-3 billion in liquidations. Traders should monitor exchange open interest for signs of stabilization."

Market Outlook & Price Scenarios

Two primary technical scenarios emerge from current data.

• Bullish Invalidation Level: $67,500—the upper boundary of the Fair Value Gap created during the crash. A sustained break above this level would fill the gap and suggest the liquidation cascade has concluded, potentially targeting $70,000 resistance.
• Bearish Invalidation Level: $61,500—the 0.618 Fibonacci support and major volume node. A daily close below this level confirms breakdown, targeting the next support zone at $58,000 and risking additional billions in liquidations.

The 12-month institutional outlook remains cautious. Macro headwinds from Federal Reserve policy create sustained pressure. However, Bitcoin's upcoming halving in 2028 provides a long-term supply shock narrative. Market analysts suggest accumulating at proven support levels rather than chasing volatility.