Bitcoin Crashes to $81K as $777M Liquidated in Hour

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.