Bitcoin tumbles amid volatility, drops to $84,000 in deepest slump since April 2025

Key Points

• Bitcoin fell over 5% amid rapid sell-offs and heavy short-term liquidations.
• Broader crypto market declined as traders reacted to liquidations and policy-related developments.

On January 29, Bitcoin dropped from above $89,000 to near $84,000, declining by more than 5% within 24 hours.

The overall crypto market fell over 4% during the same period, with total market capitalization around $2.89 trillion.

Bitcoin price movement

The digital asset declined sharply within an hour, falling from above $87,000 to levels just over $84,000 after earlier trading above $89,000.

Bitcoin’s market capitalization decreased from roughly $1.75 trillion to about $1.71 trillion during the sell-off.

Prices briefly touched near $84,300 before seeing a modest rebound above $84,700, marking the lowest levels since April 2025.

Liquidations and market context

The price decline coincided with more than $429 million in crypto liquidations within one hour, driven largely by long positions.

Data showed nearly $187 million in Bitcoin long positions were liquidated, contributing to over $793 million in total crypto liquidations across 24 hours.

The sell-off occurred ahead of a large options expiry on Deribit, following a broader pullback that began on January 28 from levels above $90,000.

Institutional activity weakened as U.S. spot Bitcoin ETFs recorded two consecutive days of net outflows.

Broader sentiment was shaped by recent macro and policy developments, including the Federal Reserve keeping interest rates unchanged and reports of a potential partial U.S. government shutdown, according to reports.

Regulatory attention also remained in focus as the U.S. Senate’s Agriculture Committee held a markup hearing on crypto market structure legislation, advancing discussion around clearer industry rules.