The cryptocurrency market endured a severe correction on January 31, 2026, with over $2.44 billion in positions liquidated amid a sharp Bitcoin sell-off. Data from CoinGlass revealed that the vast majority of these liquidations, approximately $2.27 billion, came from long positions.
Bitcoin (BTC), which had been trading near a 24-hour high of $83,125.88, lost critical support and plunged more than 5%, hitting an intraday low of $77,082 on some exchanges. By February 1, the leading cryptocurrency had partially recovered to trade around $78,500.
Prominent industry figures responded with notable resilience. Digital Currency Group founder Barry Silbert took to social media platform X to label the crash a "gift from the crypto gods." He argued the steep sell-off was a necessary event to flush out speculative excess and ensure the market's long-term health.
The downturn also impacted MicroStrategy, the largest corporate holder of Bitcoin. For the first time since October 2023, Bitcoin's spot price fell below the firm's average cost basis of $76,037. Despite this, MicroStrategy's executive chairman Michael Saylor appeared unfazed, posting an AI-generated image of himself running a marathon to symbolize his commitment to a long-term holding strategy.
