Crypto Market Crash: $120B Wiped Out, Bitcoin RSI Plunges, Billions Liquidated

Global markets were hit with a violent correction today, wiping out over a trillion dollars from U.S. equities and more than $120 billion from the crypto market in just hours. Bitcoin plunged sharply, triggering a chain reaction across leveraged positions, liquidity pools, and sentiment indices. What started as a steady sell-off quickly escalated into one of the most aggressive intraday drawdowns of the year.

The move wasn’t limited to crypto. U.S. stocks printed their sharpest sentiment drop in months, while Bitcoin’s technicals collapsed into deeply oversold territory. With fear spiking and liquidity evaporating, today’s price action marks a decisive risk-off shift — and a moment traders will remember.

Key Metrics: Capital Wipe and Liquidations

• $1 trillion evaporated from U.S. stock market capitalization today.
• $120 billion was wiped from the crypto market cap.
• Bitcoin’s price dropped to ~$81,000, slicing through key support levels.
• Over $1 billion in liquidations across 4H, 12H, and 24H windows.
• Nearly $1 billion liquidated in a single hour, one of the largest spikes of the year.
• $952,270,000 in long positions were wiped out in the last 60 minutes.
• Daily RSI on Bitcoin plunged into deeply oversold territory — lower than February’s previous low.
• Fear & Greed Index: Bitcoin rebounded from 10, while U.S. stock sentiment printed 6, its lowest reading.
• $1 billion USDT was minted and sent to Bitfinex shortly after the crash, adding more volatility to the narrative.

Technical Indicators: Bitcoin RSI Oversold

Bitcoin’s daily RSI hasn’t just dipped — it has collapsed into one of its deepest oversold readings of the year. Today’s print sits below the February low, signaling extreme momentum exhaustion and highlighting how violent the current sell-off has been. Historically, RSI levels this depressed tend to occur during panic-driven liquidations or macro shocks rather than typical corrections.

Sentiment data reinforces the severity of the move. Bitcoin’s Fear & Greed Index briefly touched 10 before bouncing, while U.S. stock market sentiment printed 6, marking its weakest reading of the cycle. The divergence between crypto and equities suggests that, despite the magnitude of the crypto drawdown, digital assets may still be holding stronger relative sentiment than stocks — an unusual but notable dynamic.

Why This Matters Now

Today’s move wasn’t just another dip — it was a full-scale leverage flush. Excessive long positioning had been building for weeks, and once Bitcoin broke through key support, cascading liquidations accelerated the drop. Every liquidation added more selling pressure, which triggered even more forced closures across major timeframes. This kind of chain reaction is what turns a correction into a market-wide shock.

The spillover into equities shows the broader risk-off environment. With sentiment collapsing across both markets, traders are shifting to protection mode, unwinding exposure, and reducing leverage. But oversold technicals and extreme sentiment also create conditions that historically precede sharp rebounds — making this a high-volatility inflection point rather than a simple trend continuation.

What Traders Should Watch

Key levels and signals now matter more than ever. Bitcoin’s behavior around the $80,000 and $75,000 zones will determine whether the market stabilizes or enters a deeper capitulation phase. Liquidation clusters remain dense, meaning another sharp move could set off fresh waves of forced selling. Funding rates, long–short imbalances, and open interest resets will offer the clearest view of where the market is heading next.

Macro catalysts remain on the table as well. Any unexpected regulatory headline, economic data release, or liquidity move from major institutions could amplify volatility. Until leverage fully resets and momentum normalizes, traders should expect erratic swings — and remain cautious around high-risk setups.

Conclusion — Crisis or Opportunity?

Today’s crash delivered one of the sharpest resets in recent market history. Leverage was wiped out, sentiment collapsed, and technical indicators flashed extremes across every timeframe. For overexposed traders, the move was devastating. But for disciplined market participants, these conditions often mark the beginning of a new opportunity cycle. Oversold RSI, fear-driven capitulation, and liquidity resets have historically preceded some of Bitcoin’s strongest recoveries — though never without volatility on the way.

Whether this becomes a deeper structural decline or the foundation for a rebound will depend on how markets behave around key support levels in the coming days. One thing is clear: we’ve reached a major inflection point, where risk management matters as much as market timing. Staying alert — and staying in control — is more important than ever.

Stay in control during high-volatility markets — buy, swap, and manage BTC, ETH, and stablecoins safely in your non-custodial Atomic Wallet