Crypto Futures Liquidations Hit $119M in One Hour Amid Extreme Fear

VADODARA, February 6, 2026 — Major cryptocurrency exchanges recorded $119 million in futures liquidations during a single hour of trading. This daily crypto analysis reveals acute market stress. According to real-time liquidation data, the 24-hour total reached $2,190 million. Bitcoin simultaneously plunged 15.19% to $61,869.

Investigation: The Liquidation Cascade Unfolds

Liquidation data from major exchanges shows concentrated selling pressure. The $119 million liquidation spike occurred within a 60-minute window. Market structure suggests forced selling from over-leveraged positions. Consequently, the 24-hour liquidation total ballooned to $2.19 billion.

This event mirrors previous capitulation phases. Historically, such spikes precede volatility compression. In contrast, sustained liquidations often indicate trend exhaustion. The current data points to a classic liquidity grab.

Market Context & Historical Precedent

Extreme Fear now grips the market. The Crypto Fear & Greed Index sits at 9/100. This level typically coincides with capitulation bottoms. Underlying this trend is Bitcoin's sharp decline below key moving averages.

Market analysts compare this to the May 2021 liquidation event. That episode saw $8.6 billion liquidated in 24 hours. It marked a local bottom before a rally. The current scale remains smaller but intensity matches.

Related developments include BlackRock's IBIT ETF hitting record volume during the sell-off. , Bitcoin broke below $67,000 earlier this week. Regulatory uncertainty persists as US Senate crypto bill talks resume.

Technical Architecture & Price Action

Bitcoin currently tests the $61,000 support zone. This level aligns with the 0.618 Fibonacci retracement from the 2025 high. A break below would invalidate the bullish structure. The Relative Strength Index (RSI) sits at 28, indicating oversold conditions.

On-chain data reveals increased UTXO age band movement. Older coins are moving to exchanges. This often signals long-term holder distribution. The volume profile shows significant activity at $62,000.

Market structure suggests a critical Fair Value Gap (FVG) between $63,500 and $65,000. This gap must fill for any sustainable recovery. The 200-day moving average provides dynamic resistance at $68,200.

By The Numbers

Why It Matters

Futures liquidations directly impact spot markets. Forced selling creates downward pressure. This can trigger stop-loss cascades. Institutional liquidity cycles typically pause during such events.

Retail market structure often breaks first. Leveraged positions get wiped out. This resets the playing field. Consequently, smart money accumulates at lower levels.

The Federal Reserve's monetary policy influences crypto volatility. According to FederalReserve.gov, interest rate decisions affect risk asset correlations. Current tightening cycles exacerbate crypto sell-offs.

Expert Commentary

This liquidation spike represents classic deleveraging. Market structure suggests we're testing a major support cluster. The $61,000 level must hold to prevent a deeper correction. Historical cycles indicate such events often mark local bottoms when combined with oversold RSI readings.

CoinMarketBuzz Intelligence Desk attributes this sentiment to on-chain forensic data.

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure.

• Bullish Invalidation Level: $68,200. Bitcoin must reclaim the 200-day moving average to confirm any trend reversal. A break above this resistance would fill the Fair Value Gap and target $72,000.
• Bearish Invalidation Level: $59,500. This represents the next major support cluster. A break below would likely trigger another liquidation cascade toward $55,000.

The 12-month institutional outlook remains cautiously optimistic. Post-merge Ethereum issuance reductions provide structural support. , Bitcoin's upcoming halving in 2028 creates long-term scarcity narratives. However, near-term volatility will persist until leverage resets.