$61.5M forced closure on HTX as bitcoin sentiment returns to extreme fear
Bitcoin slid sharply on Monday, sending shockwaves through the market and helping spark an extreme fear episode tied to whale liquidations on HTX. According to reports, a forced BTC-USDT position worth around $61.5 million was closed, signaling intense pressure on large leveraged traders as prices dropped rapidly.
The sudden downturn pushed sentiment indicators back into panic territory. Fear spread quickly among traders and investors, with volatility spiking and confidence weakening across the market. As risk appetite faded, the sharp move reinforced uncertainty about Bitcoin’s short-term direction and heightened concerns over further liquidations.
What happened in markets
Bitcoin dropped more than 4% to around $64,300 after topping roughly $68,600 over the weekend, reversing gains made since Friday.
The move coincided with a wave of derivatives wipeouts: reports put total liquidations at roughly $458–$468 million over the prior 24 hours, affecting about 136,000–137,000 traders, with liquidations heavily concentrated in leveraged long positions.
HTX bitcoin whale liquidation extreme fear: the $61.5M forced closure
One data recap cited a single $61.5 million BTC-USDT position being forcibly closed on HTX, described as the largest single liquidation in the past 24 hours.
(Separately published market coverage also noted broad liquidations and the sentiment shock, though totals can vary slightly by timing and venue coverage
Sentiment flips back to panic
Why HTX bitcoin whale liquidation extreme fear is showing up in indicators
Alternative.me’s Crypto Fear & Greed Index fell to 5/100, categorized as “Extreme Fear.” The site’s dashboard shows the “Now” reading at 5, down from 9 the prior day.
Market coverage noted that readings this low have been rare historically since the index launched in 2018.
Glassnode’s commentary, as cited in market reporting, said recent buyers were still realizing large losses, with the seven-day moving average of net realized losses for newer investors near $500 million per day a sign of continued capitulation during a base-building phase.
Context & Analysis
Monday’s decline fit a pattern often seen in leveraged markets: quick rallies draw in fresh longs, a reversal triggers forced closures, and the washout resets positioning. With sentiment back at “extreme fear” and on-chain commentary pointing to ongoing realized losses among newer holders, near-term volatility could remain elevated.
Concluding Remarks
Bitcoin’s drop back toward the mid-$64,000s coincided with heavy long liquidations, a reported $61.5M forced close on HTX, and a return to “extreme fear” sentiment readings. Whether the move marks capitulation or simply another leg in a choppy downtrend will likely depend on liquidity, leverage rebuilds, and whether buyers defend key support zones in the days ahead.
FAQs
Q : What is the HTX bitcoin whale liquidation extreme fear event?
A : It refers to a major forced liquidation on HTX, where a large BTC-USDT leveraged position, reported at $61.5 million, was automatically closed as Bitcoin prices fell and market sentiment dropped to “extreme fear.”
Q : How much did bitcoin drop during the move described?
A : Market coverage said bitcoin fell more than 4%, sliding to around $64,300 after trading near $68,600 over the weekend.
Q : How big were total crypto liquidations in 24 hours?
A : Reports estimated total liquidations at roughly $458–$468 million, with long positions accounting for most of the losses.
Q : What does a Crypto Fear & Greed Index reading of 5 mean?
A : On Alternative.me, a score of 5 out of 100 is classified as “Extreme Fear,” signaling panic-level sentiment in the market.
Q : Why do liquidations cluster when prices fall quickly?
A : Leverage amplifies losses. When prices drop fast and margin limits are breached, exchanges auto-close positions, adding forced selling that can accelerate declines.
Q: What did Glassnode indicate about short-term holders?
A : As cited in market reports, Glassnode noted that recent buyers were still realizing heavy losses, with a seven-day average near $500 million per day.
Q : Does “extreme fear” guarantee a rebound?
A : No. Extreme fear can align with capitulation, but it does not guarantee an immediate market bottom or recovery.
Facts
Event
Large forced liquidation on HTX amid broader crypto futures wipeout and extreme-fear sentimentDate/Time
2026-02-23T00:00:00+05:00 (market day referenced; intraday timing varies by venue)Entities
Bitcoin (BTC), HTX, CoinGlass, Alternative.me Crypto Fear & Greed Index, GlassnodeFigures
BTC ~ $68,600 (weekend high) → ~ $64,300 (Monday); liquidations ~$458–$468M; single HTX forced close reported $61.5M; Fear & Greed Index: 5/100Quotes
“While the intensity has cooled, the broader regime still signals a market under pressure, with participants in the base formation phase continuing to capitulate.” Glassnode (as quoted in market coverage)Sources
TradingView/Cointelegraph market report; Alternative.me index dashboard; AInvest recap citing the HTX $61.5M liquidation