Bitcoin Crashes to $81k With 777M Liquidated In An Hour

30th January 2026 – Bitcoin crashes to $81,000 , marking its lowest price of the year and triggering a massive market-wide liquidation. The drop follows an already shaky weekend that saw BTC dip below $86,000 before a brief recovery.

High Signal Summary For A Quick Glance

📌 Key Takeaways 👥 Who Is Impacted 📊 Implications

Bitcoin crashed to $81,000 on January 29, dropping nearly $10,000 in 24 hours and wiping out over $777 million in leveraged long positions
Over 200,000 traders faced liquidations totaling $750 million across all cryptocurrencies, with long positions accounting for 77% of forced closures
The sell-off occurred alongside broader market weakness, including a 1.5% Nasdaq drop and an 11% collapse in Microsoft shares, while gold surged to record highs above $5,100

Overleveraged crypto traders who saw their positions liquidated, particularly those holding Bitcoin futures and long positions in major altcoins like Ethereum, Solana, and Dogecoin
Bitcoin ETF investors experiencing sustained outflows totaling $1.72 billion over five sessions, and holders questioning Bitcoin’s role as “digital gold” amid its failure to act as a safe haven

🟢 Short term: Overleveraged positions flushed out, potentially creating healthier market foundation

🟡 Long term: Bitcoin’s narrative as digital gold challenged as it behaves more like risk assets

🔴 Key risk: Continued volatility from macroeconomic headwinds including tariff threats, government shutdown fears, and Fed uncertainty

Earlier in the U.S. session, Bitcoin was trading above $88,000. Then, the selloff accelerated. By late morning, BTC had crashed to $85,200 and extended losses soon after. At its lowest, Bitcoin lost nearly $10,000 in 24 hours, down 4.5% on the day.

Over $777M Liquidated in an Hour

The steep decline triggered a violent leverage flush. More than $777 million in long positions were liquidated within a single hour, forcing sell pressure across the board. Bitcoin futures alone saw $226 million in forced closures.

In total, over 200,000 traders were affected. The broader crypto market also took a hit:

Ethereum, Solana, Dogecoin, and Cardano dropped 5–6%
MicroStrategy (MSTR) sank 8%
The total crypto market cap fell to $2.95 trillion, a 1.74% drop in 24 hours

Gold Diverges as a Safe Haven

Gold initially mirrored the panic, spiking past $5,600/oz before sliding nearly 10%. However, by January 30, it rebounded strongly to trade above $5,100, posting a 15% YTD gain.

Silver saw a similar pattern. It dipped from $121 to $108/oz, then reversed higher to a new high of $109+. The quick recovery highlights the market’s move toward traditional hedges amid macro instability, something Bitcoin failed to match this time.

Why It’s Happening

Multiple factors combined to fuel the drop:

Macro selloff: Nasdaq dropped 1.5%, with Microsoft tanking 11% on weak cloud numbers. The VIX jumped 16% to 19, signaling rising fear.
Geopolitical risk: Trump’s 100% tariff threat on Canadian goods, looming U.S. government shutdown (Jan 30), and Fed rate uncertainty all added fuel.
Yen carry trade unwind: Fears of a stronger Yen tightened liquidity.
ETF outflows: U.S.-listed Bitcoin ETFs saw $1.72 billion in outflows over five sessions through Jan 24.
Dollar paradox: Even with the U.S. Dollar Index dropping to a 4-month low, BTC couldn’t hold. It’s now down 30% from its $126,000 October peak, wiping out all 2026 gains.

The Bigger Picture

Bitcoin’s role as a “digital gold” narrative is being tested. While gold rallied, BTC behaved more like a tech stock, closely tracking Nasdaq risk sentiment. With investors repricing risk and shifting into commodities, BTC may face continued headwinds.

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For now, the $80K level becomes critical support but the broader trend points to caution as macro and crypto-specific pressures stack up.

What To Watch For Next

Looking ahead, markets will be watching whether Bitcoin can stabilize above the critical $80,000 level or if further downside is imminent. Key factors to track include the Federal Reserve’s upcoming policy signals, ongoing ETF outflows, and macro tensions like the looming U.S. government shutdown.

If volatility persists, we may see more capital shift toward safe havens like gold. Additionally, traders should monitor funding rates and open interest, as signs of excessive leverage could set the stage for another liquidation cascade.

Frequently Asked Questions

Why did Bitcoin crash to $81,000 on January 29?

Bitcoin crashed due to a perfect storm of factors including overleveraged positions triggering mass liquidations, geopolitical tensions with Trump’s tariff threats, fears of a U.S. government shutdown, Federal Reserve uncertainty, and sustained outflows from Bitcoin ETFs totaling $1.72 billion.

How much money was lost in the Bitcoin liquidations?

Over $777 million in leveraged long positions were wiped out within just one hour, with total liquidations approaching $750 million across all cryptocurrencies over 24 hours, affecting more than 200,000 traders.

Why did gold perform better than Bitcoin during this crisis?

Gold demonstrated its traditional safe-haven status by recovering from intraday volatility to hit record highs above $5,100 with a 15% year-to-date gain, while Bitcoin behaved more like a risk asset similar to technology stocks, challenging its “digital gold” narrative.

What does this crash mean for Bitcoin’s future as a safe-haven asset?

The crash raised serious questions about Bitcoin’s role as a safe haven, as it failed to act as a dollar hedge despite the U.S. Dollar Index falling to a four-month low, instead correlating with risk assets and erasing all its 2026 gains with a 30% drop from its October 2025 peak.

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