$90.7M Futures Liquidations Signal Extreme Fear Market Stress

• $90.7 million in total liquidations across crypto perpetual futures markets in 24 hours
• Bitcoin leads with $49.83 million liquidated, Ethereum follows with $30.32 million
• Market sentiment at "Extreme Fear" (23/100) as Bitcoin trades at $87,832
• Technical analysis identifies critical Fibonacci support at $85,200 and resistance at $90,500

VADODARA, December 25, 2025 — The cryptocurrency perpetual futures market experienced $90.7 million in liquidations over the past 24 hours, with Bitcoin accounting for $49.83 million and Ethereum $30.32 million, according to market data. This daily crypto analysis reveals a market structure dominated by long position unwinding amid Extreme Fear sentiment, with Bitcoin currently trading at $87,832 after a modest 0.84% gain. Market structure suggests this liquidation event represents a classic liquidity grab below key psychological levels.

Market Context & Background

Perpetual futures liquidations of this magnitude typically occur during periods of heightened volatility when price action tests critical technical levels. The current $90.7 million liquidation event mirrors patterns observed during the March 2024 correction, when approximately $300 million was liquidated over 48 hours as Bitcoin tested the $60,000 support zone. Underlying this trend is the persistent "Extreme Fear" sentiment, which has dominated crypto markets for three consecutive weeks according to the Crypto Fear & Greed Index. This psychological backdrop creates conditions ripe for forced position closures when price action violates key moving averages.

Related developments in this environment include recent commentary from industry figures about accumulation during fear periods and institutional OTC activity suggesting strategic positioning despite market stress.

What Happened?

According to on-chain data from derivatives tracking platforms, cryptocurrency perpetual futures markets saw precisely $90.74 million in liquidations between December 24-25, 2025. Bitcoin liquidations totaled $49.83 million, with long positions accounting for 50.98% of the total. Ethereum liquidations reached $30.32 million, with a more pronounced skew toward long positions at 74.67%. The outlier was PIPPIN, which experienced $10.59 million in liquidations with 87.18% coming from short positions. This distribution indicates that while Bitcoin and Ethereum markets experienced balanced-to-bullish position unwinding, certain altcoins faced concentrated short squeezes.

The liquidation cascade occurred as Bitcoin price action tested the $87,000 support level multiple times throughout the 24-hour period. Each test triggered clustered liquidations, particularly among over-leveraged retail positions with stop-loss orders placed just below round-number psychological levels. Market analysts attribute the concentration of Ethereum long liquidations to the asset's recent underperformance relative to Bitcoin, with the ETH/BTC ratio declining 2.3% over the past week.

Technical Analysis & Price Action

Bitcoin's current price of $87,832 places it between critical technical levels. The 50-day exponential moving average at $89,100 has acted as dynamic resistance since December 22, creating a series of lower highs on the 4-hour chart. Volume profile analysis indicates significant accumulation between $85,200 and $86,500, corresponding to the 0.618 Fibonacci retracement level from the November swing high to December low. This zone represents a high-volume node that should provide substantial support if tested.

The Relative Strength Index (RSI) on the daily timeframe reads 42, indicating neither overbought nor oversold conditions but trending toward weakness. More concerning is the 4-hour RSI at 38, which suggests short-term momentum has turned bearish. Market structure suggests the recent price action has created a Fair Value Gap (FVG) between $88,500 and $89,200 that will likely be filled before any sustained upward movement. The $90,500 level represents the next significant resistance, coinciding with the 0.382 Fibonacci level and the 21-day moving average.

Bullish Invalidation Level: A sustained break below $85,200 (0.618 Fibonacci) would invalidate the current support structure and likely trigger another liquidation cascade toward $82,000.

Bearish Invalidation Level: A decisive close above $90,500 with accompanying volume would signal the liquidation pressure has been absorbed and the market is ready to test higher levels.

By The Numbers

Why It Matters

For institutional participants, these liquidation events serve as stress tests for market liquidity and counterparty risk management systems. The concentration of long liquidations in Ethereum relative to Bitcoin suggests institutions are maintaining Bitcoin exposure while reducing Ethereum leverage—a pattern consistent with the "flight to quality" observed during previous risk-off periods. Retail traders face immediate capital destruction, with the $90.7 million in liquidations representing approximately 15,000-20,000 individual positions based on average retail position sizes.

The broader implication concerns market stability. According to research from the Federal Reserve, excessive leverage in crypto derivatives markets can amplify price swings and create systemic risk during periods of stress. The current Extreme Fear sentiment, combined with elevated liquidations, increases the probability of a volatility spike that could test exchange infrastructure and liquidity providers.

Community Sentiment

Market analysts on social platforms are divided in their interpretation of the liquidation data. Some view the $90.7 million in forced position closures as a necessary cleansing of over-leveraged speculation, creating healthier conditions for the next leg higher. Others point to the Extreme Fear reading of 23/100 as evidence that retail participation has reached capitulation levels, which historically precede significant rallies. A notable thread among quantitative analysts emphasizes that the current liquidation volume represents only 0.012% of total crypto market capitalization—far below the 0.05% threshold that typically indicates systemic stress.

Price Prediction / Future Outlook

Bullish Case: If Bitcoin holds the $85,200 Fibonacci support and begins to absorb the Fair Value Gap between $88,500 and $89,200, the path opens for a retest of $92,000 resistance. This scenario would require a reduction in liquidation pressure and improvement in market sentiment above 40/100 on the Fear & Greed Index. Historical patterns indicate that Extreme Fear periods lasting 3-4 weeks often resolve with 15-25% rallies over the subsequent month.

Bearish Case: Failure to hold $85,200 support would likely trigger another liquidation cascade targeting the $82,000 level, which corresponds to the 0.786 Fibonacci retracement and represents a critical psychological threshold. This scenario would be accompanied by Fear & Greed Index readings dropping below 20/100 and daily liquidation volumes exceeding $150 million. Market structure suggests that a break below $82,000 would invalidate the current bull market structure and open the door for a test of $78,000.

FAQs

What are perpetual futures liquidations?Perpetual futures liquidations occur when a trader's position is forcibly closed by the exchange due to insufficient margin to maintain the position. This happens when price movement goes against the position direction, triggering automatic closure to prevent negative balances.

Why do Bitcoin and Ethereum have different long/short liquidation ratios?Bitcoin's more balanced 50.98% long liquidation ratio suggests both bullish and bearish positions were affected, while Ethereum's 74.67% long ratio indicates predominantly bullish leverage was unwound. This often reflects differing market positioning and leverage preferences between the two assets.

How does the Fear & Greed Index affect liquidations?Extreme Fear sentiment (below 25/100) typically correlates with increased liquidation risk as fearful traders are more likely to use tight stop-loss orders and lower margin requirements, making their positions more vulnerable to volatility spikes.

What technical levels are most important for Bitcoin now?The $85,200 Fibonacci support and $90,500 resistance represent the critical range. A break in either direction will likely determine the next significant price movement.

Where can I find the original data on these liquidations?The liquidation data referenced in this analysis comes from market tracking platforms as reported by Coinness, which aggregates derivatives data from multiple exchanges.

Source Note: Market data and factual reporting in this article are sourced from original reports. Commentary and analysis provided by CoinMarketBuzz.