Bitcoin (BTC) dropped to $80,000 on January 31, its lowest level since April 2025, as liquidations across cryptocurrency markets reached approximately $1.7 billion in 24 hours.
The decline follows Thursday's rejection at $90,000 and coincides with sharp selloffs in precious metals markets.
CoinGlass data shows roughly 267,000 traders faced forced position closures, with long positions accounting for approximately 93% of total liquidation volume. The largest single liquidation occurred on Hyperliquid, involving an Ethereum (ETH) position worth over $13 million.
Bitcoin now trades 34% below its October 2025 all-time high of $126,000. Saturday's move extended a decline that began Thursday when Bitcoin fell from $90,000 to $81,000 within hours before recovering to $84,000.
Market-Wide Pressure
Major altcoins experienced similar declines. Ethereum fell 7% in 24 hours to approximately $2,600, while BNB and XRP declined 5-6%. The broader cryptocurrency market capitalization decreased by roughly $200 billion during the selloff period.
The crypto decline coincided with extreme volatility in precious metals markets. Gold fell as much as 11% on Friday from record highs near $5,600 per ounce, while silver dropped approximately 36% from Thursday's peak of $120, according to Bloomberg data.
Market analysts attributed precious metals volatility to profit-taking following recent rallies and speculation surrounding President Trump's nomination of Kevin Warsh as Federal Reserve Chair.
The Warsh nomination, confirmed Friday morning, triggered reassessment of monetary policy expectations across asset classes.
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Derivatives Deleveraging
The liquidation wave reflects forced unwinding of leveraged positions as Bitcoin broke through support levels. Long liquidations totaled approximately $1.58 billion, indicating traders had positioned heavily for further price appreciation before the reversal.
Bitcoin spot ETFs recorded net outflows exceeding $1.1 billion over five consecutive trading days from January 20-26, suggesting institutional repositioning alongside retail liquidations. The outflows concentrated in three major products representing approximately 92% of total exits.
CryptoQuant analyst data showed the liquidation burst reached extreme levels in derivatives markets, clearing leveraged long positions while funding rates remained positive. This combination suggested positioning pressure had not fully resolved at the time of the decline.
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