Bitcoin crashed hard this week, plunging below the $81,000 mark by January 30, 2026. The cryptocurrency market turned into a bloodbath as Bitcoin shed over 6% in just 24 hours, retesting late November lows. The carnage didn’t stop there. Since January 28, Bitcoin has dropped nearly 10%, wiping out billions in market value. Ouch.
The selloff triggered a massive $1.7 billion in futures liquidations, with long positions taking the brunt of the damage. A whopping 93-96% of liquidations came from overleveraged bulls who got absolutely wrecked. Over $860 million in leveraged long futures positions vanished into thin air as trading volume spiked to $77.2 billion. Many investors directed anger at Binance as prices continued to fall. The broader crypto market shed $150 billion in total value. Not exactly a great day for crypto bros.
ETF outflows added fuel to the fire. U.S. Bitcoin ETFs recorded a staggering $817.8 million net outflow on January 29 alone, marking the third consecutive day of redemptions. Total outflows since January 27 hit $1.1 billion, removing a key source of demand that had previously propped up prices. The recent volatility starkly contrasts with Bitcoin’s reputation as a safe haven asset typically seen during more stable market periods.
ETF redemptions went nuclear as investors yanked a stunning $1.1 billion in just three days, kneecapping Bitcoin’s price support.
Technical indicators weren’t looking great either. The price briefly touched $81,040 before recovering to $82,800. Key support at $83,400 was broken, putting $80,700 or even $70,000 in play if the selling continues. Analysts note that breaking below key support levels could trigger further declines toward the $70,000 range.
Behind the scenes, miners resumed selling with a net transfer volume of -48 BTC. Long-term holders weren’t helping, distributing over 12,000 BTC. An ice storm in the U.S. disrupted mining operations, causing a decline in hashrate and undermining confidence in network security.
The macro picture looks equally bleak. U.S.-Iran tensions, trade threats, and the U.S. partial shutdown all contributed to the sell-off. Regulatory uncertainty intensified with Senate CFTC oversight proposals floating around. Even quantum computing security concerns started freaking people out.
For now, Bitcoin is in recovery mode, bouncing back to the mid-$80,000s. But with 22% of Bitcoin’s market supply now in the red, the question remains: is this just a hiccup, or the start of something worse?
