Crypto traders faced over one billion dollars in liquidations across exchanges in the past 24 hours. Long positions took the heaviest hit, accounting for $958 million as Bitcoin fell sharply below $78,000. The move triggered swift deleveraging that caught highly leveraged participants off guard. The Crypto Fear & Greed Index plunged to 30 from 45 in two days.
Bitcoin hit a low of $77,500, sparking a cascade of forced sales. On-chain data shows open interest in Bitcoin futures contracts dropped 18 percent in the same period, unwinding leveraged bets totaling nearly two billion dollars. Funding rates across major perpetual futures platforms flipped deeply negative, indicating a strong bearish sentiment shift among derivatives traders and incentivizing short positions.
This marks the largest single-day deleveraging since early 2026, when Bitcoin briefly touched $60,000. Spot Bitcoin ETF inflows totaling over $800 million earlier this month now face headwinds from the sudden volatility. The Nasdaq traded down 1.4 percent, closing at $26,185, reflecting broader risk-off sentiment in technology stocks.
Analysts are watching the $75,000 level as critical support for Bitcoin. Large wallet flows indicate significant accumulation around $72,000 during previous dips, suggesting potential buy-side interest if the price continues lower. A sustained break below $75,000 could push Bitcoin toward the 200-day moving average, currently near $69,000, which has held firm during past pullbacks.
Traders will monitor Bitcoin's daily close relative to the $78,000 mark. A reclaim of this level could signal a short-term recovery, but sustained selling pressure remains a concern for highly leveraged positions in the near term.
