Crypto Futures Liquidations Hit $563M in One Hour as Extreme Fear Grips Market

VADODARA, February 5, 2026 — Major cryptocurrency exchanges recorded $563 million in futures contract liquidations within a single hour, according to real-time data from CoinMarketCap and other major analytics platforms. This intense selling pressure pushed the global Crypto Fear & Greed Index into Extreme Fear territory at 12/100. Market structure suggests a classic liquidity grab, similar to the capitulation events of late 2021. Consequently, Bitcoin price action collapsed to $64,071, marking a 12.67% decline over 24 hours.

Investigation: The $563 Million Liquidation Cascade

On-chain forensic data from Glassnode confirms the liquidation event originated from major centralized exchanges. The $563 million in one-hour liquidations contributed to a 24-hour total exceeding $2.08 billion. This data indicates a rapid unwinding of highly leveraged long positions. Market analysts attribute the cascade to a break below key technical support, triggering a chain reaction of margin calls. The volume profile shows concentrated selling near the $66,000 level, creating a significant Fair Value Gap (FVG) on lower timeframes.

Market Context & Historical Precedent

Historically, liquidation events of this magnitude often precede short-term market bottoms. In contrast to the orderly deleveraging seen in 2023, this event mirrors the violent May 2021 correction. That period saw over $10 billion in liquidations within 24 hours, leading to a 50% Bitcoin drawdown before a sustained rally. Underlying this trend is the persistent high leverage in the crypto derivatives market, a structural vulnerability highlighted in post-mortems by entities like the Federal Reserve. Recent analysis shows similar patterns in smaller-scale events, such as the $456 million liquidation hour and the $353 million event.

Technical Architecture & Price Action

Bitcoin price action broke decisively below the 50-day exponential moving average (EMA) at $67,200. The Relative Strength Index (RSI) on the daily chart plunged to 28, entering oversold territory. Critical support now rests at the Fibonacci 0.618 retracement level of the 2024-2025 bull run, calculated at $62,400. A sustained break below this level would invalidate the higher-timeframe bullish structure. Conversely, resistance forms a dense Order Block between $68,500 and $70,000, where previous liquidity was absorbed. The UTXO (Unspent Transaction Output) age band analysis indicates a spike in young coin movement, typical of panic selling.

By The Numbers

Why It Matters

This event matters because it represents a forced deleveraging of the market. Institutional liquidity cycles often use such volatility to accumulate assets at distressed prices. Retail market structure, heavily reliant on perpetual futures, becomes fragile during these cascades. The Extreme Fear reading of 12/100 historically correlates with local price bottoms, as seen in June 2022 and March 2020. However, a failure to hold key support could trigger a broader altcoin liquidation spiral, reminiscent of the 2018 bear market.

Expert Commentary

"The $563 million liquidation hour is a textbook liquidity flush. Market structure suggests the majority were long positions caught above $68k. The critical watch is the Fibonacci 0.618 level at $62.4k. A hold there could set up a powerful relief rally, but a break targets the $58k region." – CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two primary technical scenarios emerge from the current market structure. The first involves a bullish reversal if key support holds, potentially leading to a short squeeze. The second scenario projects further downside if critical levels fail.

• Bullish Invalidation Level: $68,500. A daily close above this Order Block resistance would confirm the liquidation cascade has ended and a trend reversal is likely, targeting a move back toward $72,000.
• Bearish Invalidation Level: $62,400. A sustained break below this Fibonacci 0.618 support on a weekly closing basis would invalidate the current bullish market structure, opening a path down to the next major support zone near $58,000.

The 12-month institutional outlook remains cautiously optimistic, contingent on Bitcoin holding above $60,000. Historical cycles suggest that violent deleveraging events often reset market leverage, creating healthier foundations for the next leg up. This aligns with the 5-year horizon where infrastructure development, such as Ethereum's Pectra upgrade and broader ETF adoption, continues to drive long-term value.