The cryptocurrency market experienced a severe flash crash on Thursday, January 29, 2026, with Bitcoin leading a sharp downturn that erased billions in market value and triggered massive liquidations of leveraged positions.
According to data from CoinGlass, the carnage was most intense during a single hour of trading where $301.15 million in long positions were liquidated in just 60 minutes. Long positions accounted for 96% of the damage during that brutal period. Over a broader four-hour window following the U.S. market open, total liquidations across crypto reached approximately $500 million, with $471 million coming from long bets. Bitcoin alone saw $206 million in liquidations within those four hours.
The price action was dramatic. Bitcoin plunged from highs near $90,600 toward the $84,000 support level, registering a 5.3% drop to $84,635 at the time of reporting. This sudden move wiped out an estimated $85 billion from Bitcoin's market capitalization, reducing it from nearly $1.70 trillion. The crash dragged the broader digital asset market down with it.
Over a 24-hour period, the total damage was even more extensive. Nearly $800 million ($797.91 million) was erased from leveraged positions, with $690.26 million stemming from liquidated bullish traders. More than 200,000 traders were affected. The single largest liquidation order occurred on the Hyperliquid exchange, where a massive $31.64 million BTC-USD long position was forcibly closed.
Analysts had anticipated a pullback. Prominent analyst CrypNuevo had warned for over a month that Bitcoin would need to revisit a price range between $80,000 and $84,000 before attempting new highs above $100,000. The crash coincided with a red opening for the U.S. stock market, with the S&P 500, U.S. dollar index, gold, and silver all trading at intraday losses.
JPMorgan analysts noted that, unlike precious metals such as gold and silver which saw rallies, Bitcoin is not currently acting as a hedge against a falling U.S. dollar. Some market observers suggest the violent liquidation of bullish leverage could pave the way for a rebound, but caution that this is contingent on supportive macroeconomic and geopolitical conditions, which remain highly uncertain.
