Crypto Crash: When a $61 Million Liquidation on HTX Sends the Market Tumbling

The crypto crash over the weekend showed how quickly profits can be wiped out in the cryptocurrency world. In just two days, Bitcoin plummeted from $68,600 on Saturday to $64,300 on Monday—a decline that not only ruined investors but also reignited market uncertainty. The result was a liquidation tsunami worth $468 million across all cryptocurrencies, mainly affecting long positions.

When institutions come under pressure: The $61.5 million liquidation

The most shocking aspect of this crypto crash wasn’t just the scale of the liquidations but their concentration. A single liquidation worth $61.5 million was forcibly closed on the HTX exchange—the largest individual liquidation in the past 24 hours according to Coinglass data. This volume suggests not panicked retail investors but a large institutional holder or a highly leveraged fund that misjudged the market movement.

The monthly crash revealed a systemic problem: while total liquidations in Bitcoin futures alone reached $213.62 million, Ethereum followed with $113.89 million and Solana with $19.89 million. Surprisingly, the hype token from Hyperliquid contributed $10.72 million to this destruction—indicating widespread market pressure.

The Fear and Greed Index sounds the alarm: Capitalists clutch their hearts

With this crypto crash, a psychological reaction followed: the Crypto Fear and Greed Index from Alternative.me collapsed to a value of 5 out of 100—extreme fear. Historically, this is only the fourth time since the index’s inception in 2018 that this level has been reached. Similar moments occurred in August 2019, June 2022, and earlier this month when Bitcoin fell to $60,000.

Glassnode data highlight the scale of this fear: the seven-day moving average of realized net losses among short-term Bitcoin buyers was around $500 million per day. This means thousands of retail investors are giving up their positions, even after the initial shock in February seemed to pass. As Glassnode noted, the market remains in a base accumulation phase, where participants capitulate under pressure.

The geometric nightmare: Bitcoin 48% below all-time high

Looking at longer-term metrics reinforces the picture of current stress. Bitcoin is now about 48% below its all-time high of $126,000 from October and 5.5% below the 2021 bull market peak of $69,000. This level, once feared as resistance, has turned into a psychological floor that is repeatedly tested.

The vicious cycle scenario: Why liquidations cause more liquidations

A critical pattern runs through all these movements: traders load up on leveraged long positions during short-term recoveries only to be liquidated again when the market tests these positions. Monday cleared out leverage, but the underlying pattern remains intact. This is the core of the crypto crash cycle—a self-reinforcing downward spiral of optimism, leverage, and forced liquidations.

The data emphasize this: of the total $467.64 million in liquidations across 137,422 traders, $434 million were from long positions—about 93%. The market had bet on rising prices until the weekend but was then thrown off course by a lack of buying power.

Small rebound, big uncertainty: The role of Trump and oil prices

After the intense sell-off, early signs of stabilization appeared. Bitcoin recovered above $70,000 and held most of its gains after U.S. President Donald Trump announced a five-day pause in attacks on Iranian energy infrastructure. This geopolitical factor played an unexpectedly large role, as stabilized oil prices can support risk appetite in the market.

Altcoins also showed mixed signals: Ethereum, Solana, and Dogecoin rose about 5%, while crypto-related mining stocks, along with broader stock markets, gained. The S&P 500 and Nasdaq each increased by around 1.2%.

What’s next after the crypto crash? The role of the Strait of Hormuz

Analysts warn that the coming weeks will be decisive. Bitcoin’s further course heavily depends on whether oil prices and shipping traffic through the Strait of Hormuz stabilize—potentially supporting a test of the $74,000 to $76,000 range. If geopolitical tensions escalate, Bitcoin could be pushed back into the mid-$60,000s, which would mean another massive crypto crash.

The pattern remains unchanged: leverage, liquidations, re-pricing. Until this cycle is broken, further shockwaves are likely to ripple through the market.