Bitcoin experienced a dramatic crash on January 25, 2026, plummeting to $87,880 and triggering a massive wave of liquidations across the cryptocurrency market. The sharp decline, which saw Bitcoin fall below the $87,000 level, resulted in over $930 million in total liquidations, severely impacting leveraged traders.
The sell-off was particularly intense within a 30-minute window, where over $60 million in leveraged long positions were liquidated. Major cryptocurrencies bore the brunt of the liquidations, led by Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
The market turmoil sent altcoins deep into the red. Ethereum dropped -2.57%, Solana fell -3.88%, XRP declined -3.82%, and even BNB saw a -2.28% decrease despite reported inflows. The broad-based decline indicates a market-wide risk-off sentiment rather than an isolated event.
The crash occurred amid heightened macroeconomic concerns. Reports indicate an expected U.S. government shutdown and threats from President Trump of imposing 100% tariffs on Canada, adding layers of geopolitical and economic uncertainty that likely contributed to the risk asset sell-off.
Market analysts noted the lack of official confirmation or statements from key cryptocurrency figures or platforms regarding the specific price movement, highlighting the market's vulnerability to volatility driven by unverified conditions. The event underscores the critical importance of reliable data for maintaining investor confidence during periods of extreme market stress.
Historically, Bitcoin has experienced similar drastic price shifts, often influenced by macroeconomic pressures. Analysts caution against rapid financial decisions without further data, while noting that past trends suggest the potential for a recovery period, albeit with significant remaining uncertainties.