Bitcoin Plummets to $81K, Triggering $1.7B in Liquidations
By John Nada·Jan 30, 2026·3 min read
Bitcoin's drop to $81K triggers $1.7B in liquidations amidst geopolitical tensions and tariff threats from Trump.
Bitcoin has fallen to a nine-month low of $81,000, sparking over $1.6 billion in liquidations. Escalating geopolitical tensions in the Middle East, coupled with US President Donald Trump’s new tariff threats, have pushed traders to sell off. On Coinbase, Bitcoin (BTC) dropped to a low of $81,058 in early trading on Friday, marking the steepest decline since April, according to TradingView. This latest dip represents a staggering 35% drop from its all-time high of $126,000 reached in October.
According to CoinGlass data, 270,000 traders faced liquidations in the past 24 hours, amounting to total liquidations of $1.68 billion. The majority of these liquidations, about 93%, involved leveraged long positions mainly in BTC and Ethereum (ETH). Bitcoin now finds itself at a critical support zone on the monthly time frame, reflecting the gravity of the situation. A broader sell-off in the cryptocurrency market has wiped $200 billion from total capitalization over the last day.
The downturn comes amid rising tensions in the Middle East, exacerbated by the US dispatching another warship to the region. Trump has suggested that he plans to communicate with Tehran, stating, "We have a lot of very big, very powerful ships sailing to Iran right now, and it would be great if we didn’t have to use them." Additionally, Trump declared a national emergency and signed an executive order imposing tariffs on goods from countries selling or providing oil to Cuba, raising further alarm among traders.
Gold mirrored the sell-off, experiencing a 9% decline since its all-time high of $5,600 per ounce, while silver corrected by 11.5%. In the tech sector, disappointing earnings reports have added fuel to the fire. Jeff Mei, COO at the BTSE exchange, noted that Microsoft’s stock saw a sharp 10% drop on Thursday, the steepest since March 2020, following news of record spending paired with slowing cloud sales growth. Mei observed that investors are concerned a broader pullback in AI-related tech stocks could impact the market, leading many to derisk their portfolios.
Despite the turmoil, Mei believes the dip may be overblown, pointing out that cryptocurrencies have already seen significant declines since October. He asserts that Bitcoin and other cryptocurrencies remain at attractive price points with limited downside.
As the situation unfolds, market participants will need to stay vigilant. The intertwining of geopolitical events and financial market performance highlights the fragility of the current investment landscape. Understanding these dynamics is crucial as traders navigate the volatility ahead.