Bitcoin plunged to a perilous intraday low of $81,200 on Friday, January 30, 2026, marking one of the most severe market corrections of the year. The sharp downturn was ignited by a massive $8.8 billion monthly options expiry that acted as a volatility magnet, forcing a cascading liquidation event that wiped out over $1.6 billion in leveraged positions. As the Bitcoin price crash 2026 narrative dominates financial headlines, the market is reeling from a "perfect storm" of derivatives expiry, aggressive spot selling, and a distinct shift in macroeconomic sentiment following the Federal Reserve's latest policy maneuver.
$8.8 Billion Options Expiry Fuels Liquidation Cascade
The catalyst for Friday's violent sell-off was the expiration of approximately $8.8 billion in Bitcoin and Ethereum options contracts. Market analysts had warned for days that the sheer size of this expiry could trigger a "max pain" scenario, where prices gravitate toward levels that cause the most financial damage to option holders. As Bitcoin slipped below the critical $82,000 threshold during early Asian trading hours, it triggered a mechanical chain reaction of forced selling.
Data from Coinglass reveals that crypto market liquidations today reached a staggering $1.68 billion within a 24-hour window. Long positions bore the brunt of the devastation, accounting for nearly 93% of the wiped-out capital. Traders who had levered up in anticipation of a post-expiry relief rally found themselves trapped, as the price action mercilessly hunted stop-loss liquidity zones.
Long Squeeze Decimates Bullish Bets
The speed of the drop left little room for exit strategies. Over 270,000 traders were liquidated, with the largest single liquidation order occurring on Binance for a value of $12.5 million. This "long squeeze" effectively reset open interest to levels not seen since late 2025, flushing out excessive leverage and potentially setting the stage for a period of accumulation—though fear remains the dominant sentiment.
Spot Bitcoin ETF Outflows & Fed Rate Pause
Compounding the derivatives drama was a stark retreat by institutional investors. U.S. spot Bitcoin ETF outflows surged to over $817 million on Thursday alone, signaling a abrupt "risk-off" shift among traditional finance allocators. BlackRock’s IBIT and Fidelity’s FBTC, typically bastions of inflow consistency, saw significant redemptions as the broader equity markets wobbled.
This institutional cold feet coincides directly with the Federal Reserve's decision to pause interest rate cuts earlier this week. By holding the benchmark rate steady at 3.50%-3.75%, the Fed defied market hopes for continued easing. The "higher for longer" narrative has resurfaced, strengthening the dollar and creating a headwind for scarce assets like Bitcoin and Gold. With the cost of capital remaining elevated, the appetite for risk assets has temporarily evaporated.
Ethereum Plunges Below Critical Support
The carnage wasn't confined to Bitcoin. Ethereum price drop today headlines are equally grim, with the second-largest cryptocurrency crashing through the psychological $2,800 support level to trade near $2,680. ETH's weakness was exacerbated by its own options expiry and $74 million in outflows from Ethereum-linked ETFs.
The ETH/BTC ratio has hit a multi-year low, suggesting that capital is fleeing altcoins faster than Bitcoin during this correction. Other major assets, including Solana (SOL) and XRP, posted double-digit percentage losses, confirming a broad-based market capitulation. The total crypto market cap shed nearly $150 billion in less than 48 hours, falling back below the $3 trillion mark.
Bitcoin Price Support Levels to Watch
As the dust settles on the BTC options expiry January 30, technical analysts are scrambling to identify the floor. The immediate focus is now on the $80,000 psychological defense line. A sustained break below this level could open the floodgates for a test of the $75,000 region, a zone rich with historical liquidity.
Conversely, for any bullish reversal to gain traction, Bitcoin needs to reclaim the $85,000 level decisively. Momentum indicators like the RSI have dipped into oversold territory, which often precedes a reflexive bounce. However, without a catalyst such as renewed ETF inflows or a dovish pivot from the Fed, any recovery may be met with selling pressure from trapped bulls looking to exit at break-even.
Investors are now eyeing the upcoming weekend trading sessions with extreme caution. Historically, weekends following massive liquidation events are characterized by low liquidity and high volatility, making crypto market news 2026 a rapidly evolving landscape.
