Bitcoin hits 2026 low amid $750 million liquidations
Bitcoin plunged to its lowest point of 2026 over the weekend, dipping below $88,000 as cascading liquidations and a rush to safe-haven assets rattled cryptocurrency markets. Investors grew wary amid escalating geopolitical tensions and uncertainty ahead of the Federal Reserve's interest rate decision on January 28.
The leading cryptocurrency dropped as much as 3.5% on Sunday, hitting a floor just above $86,000, according to Bloomberg data, before a slight recovery to around $87,700 early Monday in Asia. CoinGlass figures showed nearly $750 million in crypto liquidations over 24 hours, with over 77% from long positions. Bitcoin futures alone accounted for about $226 million in forced closures, catching leveraged traders betting on price gains off guard.
This sell-off aligned with record surges in safe-haven assets. Gold soared past $5,100 per ounce on Monday, marking a new all-time high after climbing roughly 15% since the start of the year, as analysts pointed to widespread risk aversion. Silver also hit fresh peaks above $39 per ounce.
Multiple pressures weighed on risk assets. President Donald Trump's threat of 100% tariffs on Canadian goods, in response to a new Canada-China trade deal, injected fresh global market uncertainty. This followed weeks of friction over Trump's push to acquire Greenland, which sparked tariff warnings against NATO European allies before a last-minute resolution with NATO Secretary General Mark Rutte.
Market strategist Joel Kruger of LMAX Group noted that cryptocurrency markets suffered from deteriorating global risk sentiment, driven by U.S. administration unpredictability, renewed fears of a yen carry trade unwind, and broader implications for world growth.
Institutional outflows added to Bitcoin's woes, with U.S.-listed spot Bitcoin ETFs seeing net withdrawals of about $1.72 billion over five trading sessions ending January 24, per Farside data. BlackRock's iShares Bitcoin Trust led with $356.64 million in single-day outflows on January 21.
Technical analysts now eye $86,000 as a critical support level. Christopher Kennis of 10x Research highlighted $88,000-$89,000 and $85,000-$86,000 as key zones; a break could open the door to $84,000. Failure to reclaim the psychological $90,000 mark, previously support in early January, has turned it into resistance.
Focus shifts to the Federal Reserve meeting on January 28. Markets anticipate steady rates, but traders will scrutinize Chair Jerome Powell's remarks for monetary policy clues. Quarterly earnings from tech giants like Microsoft, Meta, Tesla, and Apple could further sway risk appetite. Georgii Verbitskii, founder of Web3 platform TYMIO, observed that Bitcoin's current weakness stems from scant interest from major investors at these price levels.
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