Crypto Futures Liquidations Hit $652M in One Hour Amid Extreme Fear

VADODARA, January 31, 2026 — Major cryptocurrency exchanges liquidated $652 million in leveraged futures positions within a single hour, according to real-time data from CoinMarketCap and derivatives analytics platforms. This daily crypto analysis reveals a violent deleveraging event that pushed Bitcoin below the $80,000 psychological support. In the past 24 hours, total liquidations reached $1,597 million, amplifying selling pressure across perpetual swap markets.

Investigation: The Liquidation Cascade Mechanics

Exchange order books triggered mass liquidations between 14:00 and 15:00 UTC. Data indicates long positions accounted for approximately 70% of the $652 million hourly total. This suggests over-leveraged bulls faced margin calls as Bitcoin broke key technical levels. Market structure shows a classic liquidity grab below the $82,000 weekly open, flushing out weak hands. Consequently, the Crypto Fear & Greed Index plunged to 20, signaling Extreme Fear.

Perpetual funding rates turned negative on major platforms like Binance and Bybit. This dynamic created a reflexive selling loop. Short squeezes remained minimal, confirming the dominance of long liquidation cascades. The velocity of this event mirrors flash crashes observed during the May 2021 and June 2022 deleveraging cycles.

Market Context & Historical Precedent

Historically, liquidation clusters above $500 million in one hour often mark local bottoms. For instance, the November 2022 FTX collapse saw a $1.1 billion hourly liquidation precede a 40% rally. In contrast, the 2021 bull market correction involved multiple $400-600 million liquidation waves that reset excessive leverage. Underlying this trend is the Federal Reserve's monetary policy stance, which continues to influence macro liquidity cycles as detailed in their official monetary policy reports.

Related Developments:

• Previous hourly liquidations reached $525M under similar fear conditions.
• Bitcoin's break below $80,000 intensified the sell-off pressure.
• Ethereum whale movements to exchanges added to market anxiety.

Technical Architecture & Price Action

Bitcoin's price action formed a clear Fair Value Gap (FVG) between $81,500 and $79,200. This gap now acts as a magnet for price retracement. The 200-day moving average at $76,800 provides secondary support. , the weekly Relative Strength Index (RSI) dipped to 42, indicating neutral momentum without oversold extremes. On-chain data from Glassnode shows a surge in UTXO (Unspent Transaction Output) age bands moving to exchanges, signaling potential distribution.

Market structure suggests the liquidation event created an order block near $78,000. This level must hold to prevent a deeper correction toward the Fibonacci 0.786 level at $72,500. The volume profile highlights high-volume nodes at $80,500, which now acts as immediate resistance.

By The Numbers

Why It Matters

This liquidation event matters because it resets excessive leverage, a necessary precondition for sustainable rallies. Institutional liquidity cycles often enter after such volatility spikes. Retail market structure typically weakens here, creating opportunities for larger players. The Extreme Fear reading suggests sentiment has reached a potential inflection point. Consequently, on-chain data indicates accumulation by long-term holders near these levels.

Expert Commentary

"Liquidation cascades of this magnitude often function as a pressure release valve. They remove over-leveraged positions and establish cleaner technical levels for the next move. The current structure resembles the Q3 2023 consolidation before the ETF approval rally."

Market Outlook & Price Scenarios

Market analysts outline two primary scenarios based on current derivatives data and on-chain metrics.

• Bullish Invalidation Level: $83,500. A daily close above this level would fill the FVG and invalidate the bearish structure, suggesting the liquidation flush is complete and targeting $88,000.
• Bearish Invalidation Level: $75,200. A sustained break below the Fibonacci 0.618 support confirms a deeper correction toward $70,000, extending the Extreme Fear phase.

The 12-month institutional outlook remains cautiously optimistic. Historical cycles suggest that deleveraging events of this scale often precede significant rallies within 3-6 months, aligning with the 5-year horizon for Bitcoin's adoption as a macro asset.