Bitcoin experienced a sharp decline, crashing below $76,000 on Saturday, January 31, 2026, triggering a massive liquidation event across the cryptocurrency market. The price collapse resulted in over $2 billion in liquidations, as leveraged positions were wiped out.
The steep drop saw Bitcoin trading below $80,000 for the first time since April 2025. At its lowest point, Bitcoin reached $75,555. This flash crash briefly erased Bitcoin's market capitalization to $1.5 trillion, dragging the total crypto market cap down to $2.60 trillion.
Several factors contributed to this market downturn. Reports of explosions in Iran heightened geopolitical tensions, creating market volatility. Bitcoin had already been under pressure, and the geopolitical uncertainty exacerbated the sell-off. Macro conditions also discouraged fresh risk-taking.
The market decline triggered margin calls, forcing liquidations and creating a chain reaction of selling. According to Coinglass, the crypto market recorded $1.68 billion in liquidations over the past 24 hours. Around 267,000 traders were forced out of positions, with long liquidations accounting for nearly 93% of the total. Bitcoin accounted for roughly $780 million in BTC liquidations. Ethereum followed with around $414 million in ETH futures liquidations.
Adding to the selling pressure, Bitcoin ETFs experienced heavy outflows of about $817 million on January 29, led by BlackRock, Fidelity, and Grayscale. Bitcoin ETFs have now seen outflows for eight straight days, except on January 26, when a small inflow of $6.8 million was recorded.
The impact of the crash extended beyond Bitcoin, with other major cryptocurrencies like ETH, XRP, BNB, SOL, and ADA also experiencing significant drops.
Analysts are closely watching Bitcoin's price action, noting that it has fallen below its true market mean for the first time since October 2023. Further downside levels to watch include the top of Bitcoin's last bull market from November 2021, around $69,000.
The recent price collapse also impacted Strategy's Bitcoin holdings. The firm, which holds a significant amount of Bitcoin in its corporate treasury, saw its holdings dip into the red versus its aggregate cost basis.
