- Bitcoin drops to $84,437, cutting about $85 billion from its market cap and pushing 24-hour trading volume to $51 billion
- Over $500 million in leveraged positions are liquidated in four hours, mostly long bitcoin trades, with wider crypto losses across the day
Bitcoin slid sharply after the U.S. market opened on Jan. 29, wiping out a large portion of its value in a short window and triggering heavy forced selling across leveraged positions. Within less than four hours, the move cut more than $85 billion from bitcoin’s market capitalization and set off a wave of liquidations that hit traders holding long exposure, according to figures cited alongside CoinMarketCap and CoinGlass data.
Bitcoin market cap hit as selling accelerates after the open
As of the time of writing on Jan. 29, CoinMarketCap data showed BTC trading at $84,437, down 5.83% over the prior 24 hours. Based on a capitalization near $1.70 trillion, the drop translated into roughly $85 billion erased during the sudden decline that spread through the broader crypto market.
Trading activity rose during the selloff. Bitcoin’s 24-hour exchange volume increased 20% to $51 billion, an amount described as about 3% of its market cap. The downturn began just minutes after U.S. stocks opened lower on Jan. 29, and it coincided with intraday losses across a range of widely watched markets. The S&P 500, the U.S. dollar index, gold, silver, and other leading assets were also down on the day, according to the source details.
While the move was abrupt, the price zone was not entirely unexpected by some market watchers. The analyst CrypNuevo had been flagging the possibility for more than a month, arguing that BTC might need to return to a band between $80,000 and $84,000. In that view, revisiting that area would be a step before any attempt to push to new highs above $100,000.
Liquidations surge as bitcoin breaks lower
The fast drop set off a liquidation cascade, concentrated in long positions, over a four-hour stretch cited in CoinGlass data. Across the crypto market, $500 million in leveraged positions were liquidated in that period. Long trades accounted for the vast majority, with $471 million attributed to longs.
Bitcoin was the single largest contributor to those four-hour totals. BTC liquidations reached $206 million, and $202 million of that amount came from long positions, underscoring how one-sided positioning was in the immediate lead-up to the move.
Looking beyond the four-hour window, the same data set pointed to broader stress. Over the last 24 hours, more than 200,000 crypto traders were liquidated for more than $800 million. The largest single event cited occurred in the BTC-USD market on Hyperliquid: a $31 million nominal liquidation, described as a long position.
Even with the size of the day’s damage, the liquidation figures were put in perspective against an earlier extreme. The source notes that the current wave remains far below the $19.35 billion in liquidations recorded on Oct. 10.
What comes next for Bitcoin amid uncertain macro backdrop
After the decline cleared what the source described as liquidation clusters to the downside—clusters said to have been building since late 2025—bitcoin and other cryptocurrencies may now be positioned for a rebound. That possibility, however, was framed as conditional. Any sustained recovery would depend on macroeconomic conditions and geopolitical developments shifting toward “risk-on” liquidity, a dynamic characterized in the source as highly uncertain.
In that context, the source also highlighted JPMorgan’s view on bitcoin’s behavior relative to traditional hedges. According to the bank’s assessment, BTC has not been acting as a hedge during U.S. dollar weakness. The comparison was made to precious metals and industrial metals, with gold, silver, and copper described as posting expressive rallies this week.
Conclusion
Bitcoin’s Jan. 29 selloff combined a steep market-cap drawdown, a rise in trading volume, and rapid liquidation pressure that fell heavily on long positions. While some analysts had anticipated a return to the $80,000 to $84,000 region, the next move was presented as dependent on broader financial and geopolitical conditions, with uncertainty still shaping the outlook.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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