Bitcoin Falls Below $80K as Crypto Market Sees $1.6 Billion In Liquidations

Bitcoin has dropped to a new yearly low below $80,000, as the flagship crypto continues to face sustained sell pressure. The crypto market has recorded almost $2 billion in liquidations in the last 24 hours amid BTC’s drop to April 2025 lows.

Bitcoin Crashes Below $80,000

TradingView data shows that BTC has crashed below $80,000 and is trading at around $78,000 as of press time, down over 6% on the day. This marks a new yearly low for the leading crypto and is the first time it has dropped to this level since April 2025, when U.S. President Donald Trump announced the reciprocal tariffs.

The Bitcoin crash comes amid renewed selling pressure, including from the BTC ETFs. As CoinGape reported, the Bitcoin funds recorded daily net outflows of $818 million on January 29, their largest daily net outflows since November 20. Meanwhile, these funds saw net outflows of $1.6 billion this month, marking the third consecutive month of net outflows, the first time this has happened since they launched in 2024.

On-chain analytics platform Glassnode also revealed that BTC is facing sell pressure from miners who continue to send coins to exchanges, resulting in net outflows. Macro fundamentals have also contributed to the decline in BTC’s price.

As CoinGape reported yesterday, Trump nominated ‘inflation hawk’ Kevin Warsh to succeed Fed chair Jerome Powell, raising concerns that the Fed may not lower interest rates anytime soon. Interestingly, the December PPI inflation, which was released yesterday, came in at 3% year-over-year (YoY), above expectations of 2.7%.

Notably, the Fed already held interest rates steady earlier in the week over concerns that inflation remains somewhat elevated. Powell had also warned during his post-FOMC conference that they had to keep an eye on inflation, signaling a hawkish pivot from the Fed.

Crypto Market Records $1.6 Billion In Liquidations

CoinGlass data shows that the crypto market recorded $1.6 billion in liquidations over the last 24 hours amid Bitcoin’s crash below $80,000. Long traders have suffered the most losses with $1.5 billion in long positions liquidated, while there have only been $125 million in short liquidations during this period.

Altcoins have also recorded significant losses on the day, with Ethereum down over 11% in the last 24 hours. XRP, SOL, BNB, DOGE, and ADA have also posted double-digit losses in the last 24 hours.

As CoinGape reported, the Bitcoin price is at risk of a larger crash amid this market volatility. Veteran trader Peter Brandt has predicted that the leading crypto could drop to as low as $66,000, having flashed several sell signals.

Amid this market crash, a significant development to keep an eye on is BTC’s potential drop below Michael Saylor’s Strategy average price on their holdings. The company currently holds 712,647 BTC, which it acquired for $54.19 billion at an average price of $76,037 per Bitcoin.