- Bitcoin fell below $85,000 and touched a low of $84,250.
- CoinGlass data shows total liquidations hit $804 million over the past 24 hours.
- The crash happened as gold fell from its peak above $5,500 on Thursday.
Cryptocurrency markets saw a sharp risk-off move on Thursday, with Bitcoin sliding to a low of $84,250.
The sell-off swept through major tokens, sending shockwaves across the crypto derivatives market.
Long positions bore the brunt of the move, as the drop pushed total liquidations over the past 24 hours above $800 million.
The downturn coincided with an abrupt reversal in gold prices, with the metal retreating from recent highs above $5,500.
Analysts cited mounting macroeconomic and geopolitical tensions as key drivers of the sudden shift in sentiment.
Bitcoin tanks as gold sheds gains
Bitcoin has struggled to reclaim the $90,000 support level, with a brief move toward that mark fading as gold surged.
During Asian and early European trading on January 29, the cryptocurrency began a steady decline, slipping below $88,000.
Selling accelerated as the US session opened, with Bitcoin sliding on above-average trading volumes.
The sell-off pushed the benchmark asset to an intraday low near $84,000, its weakest level since December 2025.
The same area had seen a bearish retest in November, a move that may have prompted at least one large holder to sell roughly 200 BTC.
Over the past 24 hours, Bitcoin was down about 5%.
The broader market sell-off dragged Ethereum to around $2,800, XRP to $1.79, and Solana below $120.
Crypto investor Ted wrote on X that the latest drop has left Bitcoin trading near a critical technical level.
$BTC is now back into its strong support zone.
Nearly $140,000,000 in spot bids have been placed between the $80,000-$84,000 level.
If this zone is lost, Bitcoin will go straight to April 2025 lows. pic.twitter.com/QBbW294Rc0
— Ted (@TedPillows) January 29, 2026
The Bitcoin sell-off unfolded amid a broader shift to risk aversion across global markets.
Equities moved lower, led by a sharp decline in Microsoft shares, while investors also reacted to a sudden reversal in precious metals.
Gold, which had climbed to a record high above $5,500 an ounce earlier on Thursday, reversed course and fell toward $5,300. Silver also retreated sharply from recent highs.
Analysts said the move reflects a mix of macroeconomic pressures and heightened geopolitical risks, including rising tensions between the United States and Iran.
The Federal Reserve’s decision to hold interest rates on Wednesday, alongside guidance suggesting rate cuts may be delayed until late 2026, further weighed on risk assets, prompting investors to favour short-term cash positions over digital assets or traditional safe havens.
Over $800 million was wiped out amid a surge in derivatives liquidations
Bitcoin’s sharp decline was mirrored in the derivatives market, where leveraged positions were unwound aggressively.
Data from crypto analytics platform Coinglass show that more than $800 million in positions across spot and futures markets were liquidated over the past 24 hours, with the bulk of losses borne by long traders.
Bitcoin alone accounted for $332 million in liquidations during the period, of which more than $318 million were long positions, according to the data.
While the scale of the sell-off and liquidations was smaller than the market dislocation seen on October 10, 2025, analysts say the episode underscores ongoing fragility in market positioning.
