Bitcoin suffered a sharp downturn over the last 24 hours, sliding by 5.5% to trade around the $78,600 level as heightened fear, aggressive liquidations, and rising geopolitical uncertainty weighed heavily on digital asset markets.
The selloff pushed Bitcoin well below the $84,000-$94,000 trading band last seen in November, reinforcing a broader period of volatility across the cryptocurrency ecosystem. High-volume sell orders swept through major tokens, reflecting a decisive shift in market sentiment.
Losses extended beyond Bitcoin, with Ethereum, BNB, XRP, Solana, Tron, and Dogecoin all recording declines, compounding weekly losses across the board. Market data showed a broad-based retreat from risk assets as traders reacted to deteriorating technical signals and macroeconomic stressors.
In a notable technical breakdown, Bitcoin closed below its 365-day moving average of approximately $80,000 for the first time since April 2025. The drop marked a dramatic reversal from its fourth-quarter 2025 peak near $126,000, underscoring the scale of the correction.
Despite the widespread selloff, Bitcoin underperformed the broader crypto market, which declined 5.6% over the same 24-hour period. Selling pressure intensified on Sunday, with top digital assets absorbing the bulk of the liquidation activity.
At press time, the global cryptocurrency market capitalization had contracted to about $2.66 trillion, reflecting a 5.6% drop driven by a combination of macroeconomic risks, leveraged position unwinding, and bearish chart patterns.
Liquidation data revealed that more than $2.58 billion worth of crypto positions were wiped out within 24 hours. Bitcoin long positions accounted for roughly $772 million of that figure, as cascading margin calls followed BTC’s breach of the psychologically critical $80,000 level.
Excessive leverage amplified the downside move, with stop-loss triggers accelerating the decline and creating a self-reinforcing sell cycle. Technical indicators suggest further downside risk remains, prompting traders to exit positions rapidly to limit exposure.
On the macro front, escalating tensions between the United States and Iran over Greenland, coupled with the Federal Reserve’s decision to pause rate cuts, fueled a risk-off environment. Bitcoin’s correlation with equity markets rose sharply, while its dominance shifted as capital rotated away from altcoins.
Investor flows showed a preference for safety, with funds moving into U.S. Treasuries and cash instruments. Bitcoin’s heightened volatility discouraged short-term participation, while institutional activity added pressure. Trading records indicated that BlackRock’s Bitcoin ETF saw approximately $1.2 billion in outflows on January 30, intensifying selling momentum.
Overall, Bitcoin’s decline reflects a convergence of aggressive deleveraging, macroeconomic anxiety, and broken technical support levels. While oversold conditions could spark a short-term rebound, the lack of significant whale accumulation and continued ETF outflows suggest downside risks remain elevated in the near term.
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