Bitcoin falls below $80,000 as geopolitical shock triggers mass sell-off

Traders Union
All News
Crypto News
Bitcoin falls below $80,000

Highlights

Bitcoin plunged below $80K, hitting $75,555, as geopolitical tensions triggered risk-off selling and erased January gains.
Over $2.5B in crypto positions were liquidated, mostly longs, as leverage unwound rapidly during extreme volatility.
Heavy U.S. spot Bitcoin ETF outflows added pressure, deepening the sell-off and worsening short-term sentiment.

The drop marked an 11% decline for the month, erasing early-January gains and dragging Bitcoin’s market capitalization down to around $1.5 trillion. At current levels near $77,800, BTC also slipped below MicroStrategy’s average purchase price of $76,037, a level not breached since October 2023. The move followed heightened geopolitical tensions after reports of explosions in Iran, which triggered a broad risk-off reaction across markets. While Ethereum fell roughly 7%, Bitcoin’s decline remained the focal point as leverage unwound rapidly. The correction underscored how sensitive crypto markets remain to macro shocks and headline-driven volatility.

$2.5 billion wiped out as long positions collapse

The price drop sparked one of the largest liquidation events of the year, with $1.84 billion in positions liquidated in just four hours. Of that total, $1.76 billion were long positions, highlighting the one-sided positioning heading into the sell-off. Over a 24-hour period, total liquidations reached approximately $2.5 billion, with longs accounting for $2.4 billion.

At the peak of the turmoil, more than $1.14 billion was wiped out within a single hour as cascading margin calls accelerated losses. The forced deleveraging amplified downside pressure and contributed to extreme intraday volatility. Despite a modest bounce, Bitcoin struggled to regain momentum as risk appetite remained fragile.

ETF outflows deepen the downside pressure

Selling pressure was reinforced by heavy withdrawals from U.S. spot Bitcoin ETFs, which recorded $1.49 billion in net outflows during the final week of January. The sharpest redemptions came on Wednesday and Thursday, with $818 million and $510 million exiting the funds respectively, marking the largest single-day outflow of 2026. January ended with roughly $1.6 billion in total net ETF outflows, making it the third-largest monthly sell-off on record for Bitcoin products.

This reversal followed a strong start to the year, when ETFs attracted more than $1.16 billion in inflows during the first two trading days. As ETF demand faded, spot prices came under additional pressure, exacerbating the broader market downturn. The combination of ETF redemptions, leverage liquidations and geopolitical stress has shifted sentiment decisively bearish in the short term.

Recently we wrote that U.S.-listed spot Bitcoin ETFs recently saw substantial outflows, marking one of their worst days since August as investors responded to market uncertainty and reduced exposure.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.