Bitcoin suffered a dramatic flash crash on Monday, falling below the $77,000 mark and extending a four-day losing streak that has rattled cryptocurrency markets and triggered the largest single-day liquidation event in recent memory. The decline, which saw total liquidations reach $657 million in just 24 hours, has pushed the crypto Fear and Greed Index to levels not seen since the depths of previous bear markets.
Bitcoin Falls Below $77K
Bitcoin’s latest decline marks the fourth consecutive day below the $77,000 level, following a brief rally around the Senate Banking Committee’s advancement of the CLARITY Act last Thursday. The cryptocurrency, which had been trading between $76,000 and $76,500 at press time, has seen its price action deteriorate significantly as traders sold into the regulatory news rally.
According to data from Coinglass, total liquidations across the crypto market reached $657 million over a 24-hour window, with an overwhelming $584 million—nearly 89 percent—coming from long positions. This concentration of liquidations in bullish trades sends a clear signal that leverage was heavily crowded to the upside, leaving markets vulnerable to the kind of sharp drawdown that unfolded.
The timing of the crash coincided with broader macroeconomic concerns, as geopolitical tensions and shifting interest rate expectations have weighed on risk assets across the board. Cryptocurrency markets, which have shown increasing correlation with traditional equity markets in recent months, appear to be caught up in a broader flight from risk that has affected growth stocks, high-yield bonds, and other risk-sensitive investments.
Fear and Greed Index Collapses
The sell-off has devastated market sentiment, pushing the Fear and Greed Index to an alarming 29—landing squarely in “extreme fear” territory. Just days prior, the index sat at a neutral 50, reflecting the optimism that surrounded the CLARITY Act’s progress through Congress. The rapid deterioration in sentiment underscores how quickly cryptocurrency markets can shift from greed to fear, a characteristic that has defined the asset class since its inception.
“The concentration of liquidations in long positions sends a clear signal that bullish leverage was heavily crowded entering the drawdown.” — Market analyst, Coinglass
Among altcoins, Quant (QNT) fell approximately 7 percent, trading near $75 and approaching its 50-day exponential moving average at $72.86. Bitcoin Cash (BCH) dropped below $400, trading beneath both its 50-day and 200-day EMAs, signaling potential further weakness ahead. The broader altcoin market followed suit, with most major tokens posting losses between 3 and 10 percent over the 24-hour period.
Technical analysis suggests the 50-day EMA at $76,716 now represents key near-term support, while the 200-day EMA at $83,513 serves as significant overhead resistance. The previous major support test came at $70,740 on April 12, 2026—a level that bulls will be watching closely if the current slide continues. Volume analysis confirms the breakdown, with trading volumes surging well above the 30-day average during the sell-off.
Whale Trader Machi Big Brother Liquidated Again
Among the casualties of Monday’s crash was serial high-leverage trader Machi Big Brother, the alias of entrepreneur Jeffrey Huang. Onchain data flagged that the sudden crash had wiped Machi’s active position, marking another liquidation in a series that has seen him lose millions across multiple incidents.
Rather than waiting for markets to stabilize, Machi immediately opened a new 25x leveraged long position on 1,825 ETH, worth approximately $3.87 million, with a liquidation price set at $2,086.69. This Martingale-style approach—scaling up positions following losses in an attempt to recover prior drawdowns—has now resulted in over 335 total liquidations, with 262 occurring in January 2026 alone during that month’s volatility spike.
The trader’s resilience in the face of repeated losses has become a subject of fascination within the crypto community. While the strategy carries enormous risk—it only takes one more major liquidation to wipe out an entire portfolio—the willingness to immediately re-enter markets after a significant loss suggests either tremendous conviction or a concerning lack of risk management discipline. Financial advisors widely caution against such aggressive position sizing.
Institutional Outflows Compound Pressure
Spot bitcoin exchange-traded funds have compounded the ongoing pressure, with data showing BTC spot ETFs recorded a net outflow of $1.039 billion for the week of May 11-15. This marked the end of a six-consecutive-week streak of net inflows, suggesting institutional investors are reassessing their near-term positioning in the market. BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund led the outflows.
Spot Ethereum ETFs posted a separate net outflow of $255 million over the same period, with the combined institutional exit totaling nearly $1.3 billion. These outflows reflect a broader recalibration of risk exposure as macroeconomic uncertainties and regulatory developments continue to weigh on crypto sentiment. The departure of institutional capital could prolong the current downturn if retail investors fail to fill the void.
The CLARITY Act, which passed the Senate Banking Committee with bipartisan support, represents the most significant crypto legislation attempt in years. However, the bill’s journey through Congress remains lengthy, and traders appear to be taking profits rather than waiting for final passage, which could still be months away. Industry analysts expect volatility around legislative developments to remain elevated as the bill moves toward a full Senate vote.