Bitcoin retraces to $61.8K as crypto liquidation hits $367M; Fear & Greed index falls to 22 amid US chip selloff
Bitcoin retraced toward $61.8K in the past 24 hours, with Ethereum slipping to about $1,750. Overall crypto liquidation surged to $367M, with longs accounting for roughly 85% of the wipeout (about $310M long liquidations vs. $56M short). CoinGlass data also shows 91,399 traders were forced out, and the largest single liquidation was on Hyperliquid’s ETH-USD position (~$4.08M).
Prices meanwhile moved lower across majors: BTC down ~2.23% to around $62.6K, ETH down ~2.12% to around $1,786, while SOL and XRP also fell. The market’s risk-off mood was reinforced by a US tech/semiconductor selloff; Nasdaq closed lower and chip-related shares dragged sentiment. At the same time, geopolitical risk around Iran-related maritime disruption pushed oil higher, increasing inflation and Fed-hike concerns.
The Fear & Greed Index dropped to 22 (“Extreme Fear”), near the lowest levels of the week. For traders, this combination of Bitcoin retracement, heavy long liquidations, and macro-driven risk aversion raises the odds of continued volatility and de-risking in the short term.
Bearish
This news flow is bearish because it combines (1) Bitcoin retracement into a key lower-price area, (2) heavy long liquidations ($367M total; ~85% longs), and (3) a macro risk-off backdrop (US chip/tech weakness plus higher oil feeding inflation/Fed-hike fears). When long liquidations dominate, it often forces additional selling through deleveraging, which can keep downside momentum even if price later stabilizes.
In the short term, the “Extreme Fear” reading (Fear & Greed at 22) usually corresponds to fragile market structure: bids are thin, bounces can be sold quickly, and volatility remains elevated. In the medium term, unless spot demand meaningfully steps in, the market may stay range-bound-to-down as traders reduce leverage and wait for confirmation.
Similar patterns have appeared in past selloffs: after a sharp drawdown with large long liquidation totals, BTC often needs either a clear macro relief signal or renewed ETF/spot inflows to reverse sustainably. Absent that, rallies can become short-lived liquidity events rather than trend changes.