Bitcoin Slides to Nine‑Month Low as Geopolitical Strain, Tariff Threats and Market‑wide Sell‑off Converge
January 30, 2026
Bitcoin (BTC) slipped below the $81,000 mark on Friday, touching a price level not seen since April. The drop, recorded on the Coinbase exchange at $81,058, marks the cryptocurrency’s deepest decline in nine months and pushes its overall loss from the October all‑time high of $126,000 to roughly 35 %.
Market fallout
- Liquidations: Data from analytics firm CoinGlass show that about 270 000 leveraged positions were force‑closed in the previous 24 hours, translating to roughly $1.68 billion in liquidated value. Long‑side contracts dominated the activity, accounting for 93 % of the total, with the bulk tied to BTC and Ether (ETH).
- Capitalisation hit: The broader digital‑asset market erased close to $200 billion in market cap during the same period, underscoring the systemic pressure from the sell‑off.
- Support zone: On the monthly chart, Bitcoin now sits at a critical technical support region. A sustained breach could open the path to further downside, while a bounce might stabilize the market around the $80‑$85 k range.
Drivers behind the plunge
1. Geopolitical escalation
U.S. warships have been dispatched to the Middle East as tensions with Iran rise. President Donald Trump signalled a willingness to engage Tehran directly, a stance that heightened risk‑aversion among investors. Concurrently, the administration declared a national emergency and issued an executive order that would impose tariffs on any goods originating from nations that sell oil to Cuba, adding an extra layer of uncertainty to global trade flows.
2. Commodities retreat
Gold, often seen as a safe‑haven counterpart to cryptocurrencies, fell 9 % from its recent peak of $5,600 per ounce, while silver slipped 11.5 %. The parallel decline suggests a broader risk‑off sentiment affecting both traditional and digital stores of value.
3. Tech earnings disappointment and AI‑related concerns
Jeff Mei, COO of the BTSE exchange, linked the market dip to the underwhelming earnings report from Microsoft. The software giant’s shares dropped 10 %—its steepest single‑day fall since March 2020—after revealing higher‑than‑expected spending and slower growth in its cloud segment. Analysts fear that a slowdown in AI‑driven revenue may spill over into risk assets, prompting investors to de‑risk their portfolios.
4. Liquidity crunch from leveraged positions
The overwhelming share of liquidations came from long‑leveraged traders. As price pressure mounted, margin calls triggered a cascade of forced sales, amplifying the downward trajectory.
Analyst perspective
“The correction appears somewhat exaggerated given the overall decline since October,” said Mei. “From a valuation standpoint, Bitcoin and other major tokens remain relatively attractive, with limited immediate downside, provided the macro environment stabilises.”
Key takeaways
- Price level: Bitcoin breached the $81k threshold, supporting a technical test of its monthly support zone.
- Liquidation magnitude: Over $1.6 billion in leveraged contracts were liquidated, predominantly long positions on BTC and ETH.
- Macro backdrop: Escalating U.S.–Iran tensions, a looming tariff regime targeting Cuba‑related trade, and a pullback in AI‑centric tech earnings collectively pressured risk assets.
- Commodity correlation: Simultaneous drops in gold and silver indicate a broader risk‑off wave rather than a sector‑specific move.
- Outlook: If Bitcoin can hold the current support area, a short‑term bounce may be possible. However, renewed geopolitical friction or further disappointing earnings in the tech sector could reignite selling pressure.
Investors are advised to monitor both on‑chain metrics and macroeconomic indicators, as the intersection of geopolitical risk, policy shifts, and market sentiment will likely dictate the next price direction for Bitcoin and the wider crypto ecosystem.
This report follows Cointelegraph’s editorial standards and is intended for informational purposes only. Readers should conduct independent verification before making investment decisions.
Source: https://cointelegraph.com/news/bitcoin-falls-to-81k-causing-billions-in-liquidations?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
