After maintaining a steady position above the $87,000 mark, Bitcoin unexpectedly tumbled below $85,000, reaching an intraday low of $84,231 with a decline of 3.7% in just one hour.
Bitcoin Breaks Critical Support as Downward Trend Emerges
The cryptocurrency market has experienced a downturn of 5.29%, bringing its total valuation down to $2.87 trillion following the recent retreat of $BTC. This notable drop occurred at approximately 9:48 a.m. EST and continued to slide until it hit an intraday low around 10:45 a.m.
An additional trading volume surge of about $15 billion was recorded for the day; however, most transactions were driven by selling pressure and profit-taking after $BTC had surpassed the $90,000 threshold just one day prior.
$BTC/USD hourly chart via Bitstamp on January 29, 2026.
$BTC is facing challenges from various fronts—primarily due to the U.S. Federal Reserve’s aggressive stance after maintaining current interest rates this week. Compounding this are rising concerns regarding international conflicts and potential trade wars. Furthermore, overleveraged long positions coupled with crowded long-to-short ratios have triggered liquidation cascades amid thin liquidity conditions.
The broader crypto landscape is nearing nearly $1 billion in derivatives liquidations today alone; Coinglass reports that approximately $796.58 million has been liquidated thus far. Of that total amount, around $307 million originated from $BTC longs while ETH longs accounted for about $114 million in losses—leaving remaining damages scattered across various altcoin investments. In just the last day alone, over 212 thousand traders faced forced exits due to these developments.
Also read: Metaplanet Lines up $137M to Continue Bitcoin Acquisitions
With momentum shaken and leverage reduced significantly, traders now confront a rapidly changing market landscape that has reset itself abruptly. Whether this shift represents merely a cooling-off phase or signals deeper turbulence will depend on liquidity levels returning alongside stabilizing macroeconomic sentiments. For now though—volatility reigns supreme without any signs of slowing down.
FAQ ⏱️
What caused Bitcoin’s fall below $85K today?
The drop resulted from intense selling pressure combined with overleveraged positions and hawkish policies from the Federal Reserve.
How much liquidation occurred within the crypto market?
Nearly one billion dollars worth of crypto derivatives were liquidated today—with significant losses primarily affecting Bitcoin and Ethereum long positions.
What impact did the Federal Reserve have on these movements?
The Fed’s choice to maintain interest rates contributed significantly to risk-averse sentiment throughout both cryptocurrency markets as well as wider financial landscapes.
What does “path of least resistance” imply for Bitcoin moving forward?
With leveraged trades cleared out and momentum diminished—the outlook remains bearish unless there’s an influx in liquidity along with renewed buying enthusiasm.