Liquidation of $61 Million Bitcoin on HTX: Market Panic Signal Reaches Peak

When Bitcoin dropped from a peak of $68,600 to $64,300 in a short period, a wave of leveraged position liquidations swept through the global crypto market. A key moment in this volatility was a massive $61 million liquidation on the HTX platform, reflecting panic among futures traders who maintained bullish expectations.

This sell-off wasn’t an isolated event. Data from Coinglass shows that total futures contract liquidations reached $467.64 million within 24 hours, involving 137,422 different traders. Long positions accounted for the majority of losses, contributing $434 million or 93% of total liquidations, indicating that the market was still very optimistic at the start of the week before facing aggressive selling reactions.

Extreme Fear Drives Wave of Long Position Liquidations

The $61 million liquidation on HTX is concrete evidence of escalating market panic. The magnitude of a single forced position closure indicates significant exposure—likely from whales or pooled funds rather than just retail margin calls. Along with this forced liquidation, the Crypto Fear and Greed Index from Alternative.me jumped back to 5 out of 100, a reading categorized as “extreme fear.”

This extreme level has been recorded only three times since the index launched in 2018: August 2019, June 2022, and early during the last downturn when Bitcoin hit $60,000. Each time the index reached this level, the market showed signs of massive capitulation among short-term holders who could no longer sustain their positions.

Fear Index Hits Lowest Level Since June 2022 Deletion

Blockchain data from Glassnode provides deeper insight into this pressure. The company reports that the seven-day moving average of realized net losses among new Bitcoin buyers still averages around $500 million per day—a figure revealing that although selling intensity has eased from its peak, the broader regime remains under ongoing market stress.

“Participants are still in a capitulation phase that continues to form a bottom,” notes Glassnode, indicating that retail selling persists even after significant price declines.

The broader context makes this event feel more dramatic. Bitcoin is currently 48% below its all-time high of $126,000 reached in October, and 5.5% below the 2021 bull run peak of $69,000. The $69,000 level, once seen as a ceiling, now acts as a floor that is repeatedly tested during rebounds, creating complex psychological dynamics for traders.

Leverage Cycles and Liquidations: Repeating Patterns Testing Trader Resilience

The most striking aspect of this event is its cyclical pattern. Traders keep initiating long positions on every rebound or rally signal, only to be punished when bids dry up and selling pressure returns. The $61 million liquidation on HTX is a perfect symbol of this cycle.

A breakdown of the liquidations shows clear distribution: Bitcoin futures alone recorded forced closures of $213.62 million, followed by Ether (ETH) at $113.89 million and Solana (SOL) at $19.89 million. An interesting anomaly is HYPE token Hyperliquid, which recorded $10.72 million in liquidations—an eye-catching figure given its position outside the top five in liquidation totals. This suggests retail speculation is spreading into more exotic and high-risk assets.

Next Market Signals: Stabilization or Further Pressure

Bitcoin’s current price is around $70,600, showing a partial recovery from its lows, supported by President Trump’s announcement of a five-day pause on attacks against Iran’s energy infrastructure. Altcoins like Ether, Solana, and Dogecoin also rebounded about 5%, with crypto mining stocks strengthening their positions amid broader equity gains (S&P 500 and Nasdaq up about 1.2%).

However, this momentum is fragile. Analysts warn that Bitcoin’s next move depends on oil price stability and traffic through the Strait of Hormuz. If conditions stabilize, the market could retest the $74,000 to $76,000 range. But if geopolitics worsen, prices could slide back into the mid-$60,000 zone.

The $61 million liquidation event on HTX serves as a reminder that leverage in the crypto market is a double-edged sword. While prices continue to fluctuate, repeated cycles of position clearing will keep testing trader resilience and broader market stability.