Crypto Futures Liquidations Hit $411M as Extreme Fear Grips Market

VADODARA, February 3, 2026 — Perpetual futures markets witnessed over $411 million in estimated liquidations across major cryptocurrencies in the past 24 hours, according to aggregated exchange data. This daily crypto analysis reveals Ethereum led the cascade with $200 million liquidated, 58.95% of which were long positions. Bitcoin followed with $190 million (54.81% longs), and Solana saw $21.74 million (64.74% longs). Market structure suggests a classic liquidity grab amid Extreme Fear sentiment, scoring 17/100 on the Crypto Fear & Greed Index.

Investigation: The 24-Hour Liquidation Cascade

On-chain data from derivatives platforms indicates a sharp, coordinated sell-off triggered stop-loss orders. Ethereum's $200 million liquidation volume dominated, with longs comprising 58.95% of wiped positions. Bitcoin's $190 million in liquidations saw a slightly lower long bias at 54.81%. Solana, while smaller at $21.74 million, exhibited the highest long concentration at 64.74%. These figures, sourced from real-time exchange APIs, reflect a market flushing over-leveraged speculators. The liquidation ratios point to a bearish skew, yet the high long percentages hint at forced selling rather than strategic shorting.

Market Context & Historical Precedent

Historically, liquidation events of this magnitude often precede volatility compression. Similar to the May 2021 correction, where $8 billion in liquidations catalyzed a 30% Bitcoin drawdown, current conditions test structural integrity. In contrast, the 2023 bear market saw more sustained, grinding liquidations. Underlying this trend is the Global Crypto Sentiment reading of "Extreme Fear" at 17/100. This aligns with broader institutional hesitation, as highlighted in a recent JPMorgan report on family offices shunning crypto. , the Step Finance hack on Solana has exacerbated sector-specific fears, contributing to SOL's elevated long liquidation ratio.

Technical Architecture & Price Action

Market structure suggests Ethereum's price action at $2,297.19 is probing a critical Fibonacci 0.618 retracement level near $2,250. This zone coincides with a high-volume node on the Volume Profile, indicating strong historical support. Bitcoin, meanwhile, faces a Fair Value Gap (FVG) between $90,000 and $92,000 that must be filled for bullish continuation. The 24-hour trend shows ETH up 1.87%, but this masks intraday volatility exceeding 5%. RSI readings across majors hover near oversold thresholds, yet momentum remains weak. According to Ethereum's official Pectra upgrade documentation, network fundamentals like EIP-4844 blob transactions are decoupling from price, reducing sell pressure from gas fees.

By The Numbers

Why It Matters

Liquidation cascades directly impact spot markets by creating forced selling pressure. This event matters because it tests institutional liquidity cycles. Large liquidations often flush weak hands, setting the stage for healthier rallies. Evidence from order book depth shows bid-side liquidity thinning below $2,250 for ETH. Retail market structure is fragile, with many leveraged positions built during the recent rally. Consequently, a break below support could trigger a broader deleveraging. This dynamic mirrors past cycles where futures markets led spot downturns.

Expert Commentary

"The liquidation data indicates a market cleansing over-leveraged positions. Extreme Fear sentiment at 17/100 often marks local bottoms, but sustained breaks below Fibonacci supports would signal deeper corrections. Traders should monitor the $2,250 ETH level as a liquidity magnet." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure. First, a bullish reversal requires holding key supports and filling Fair Value Gaps. Second, a bearish continuation would see breaks below invalidation levels, targeting lower liquidity pools.

• Bullish Invalidation Level: Ethereum must hold $2,250 (Fibonacci 0.618 support). A break above $2,400 resistance confirms trend reversal.
• Bearish Invalidation Level: Bitcoin must maintain $90,000 support. A drop below $88,500 invalidates the current structure, targeting $85,000.

Historical cycles suggest such liquidation events often precede 3-6 month consolidation phases. The 12-month institutional outlook remains cautious, with events like ING Germany's ETP launch providing incremental support. Over a 5-year horizon, these volatility spikes are typical in maturing markets, aligning with long-term adoption trends.