Bitcoin Plunge to $81,000 Wipes Out $1.68 Billion, Traders and Investors Hit Hard

Bitcoin's price plummeted to $81,000, resulting in a $1.68 billion loss within 24 hours, impacting traders and investors. The crash, which briefly slipped below the $81,000 mark, also affected Ethereum, with losses exceeding 6%.

The decline on January 30, 2026, triggered a wave of forced liquidation across derivative markets. Approximately $780 million in Bitcoin and $400 million in leveraged bets were liquidated, emphasizing the heavy skew towards leveraged positions in the market.

The sharp reset was partly attributed to the post-ETF rally in 2024, with nearly 93% of liquidated positions being long. High leverage bets, institutional demand, and ETF inflows contributed to the market imbalance, leading to a rapid collapse when price momentum stalled.

The market reset extended to other cryptocurrencies, with Bitcoin's market capitalization falling by approximately $1.64 trillion. Analysts highlighted the role of excessive leverage and margin calls in intensifying the sell-off.