Bitcoin extended its decline on January 31, slipping below the key $80,000 psychological level amid intensified selling pressure across the crypto market. The world’s largest cryptocurrency traded in the low-to-mid $78,000 range during the session, marking one of its weakest daily performances in months.
The breakdown below $80,000 triggered a wave of forced liquidations across derivatives platforms, accelerating the downside move. Within hours, more than $1 billion in leveraged positions were wiped out across the broader crypto market, with Bitcoin accounting for the largest share.

As BTC lost short-term support near $82,000-$80,000, stop-loss orders and margin calls cascaded through the market. Elevated open interest in perpetual futures left traders vulnerable to a long squeeze, intensifying volatility.
The spike in liquidation volume suggests the selloff was driven not only by spot selling but also by aggressive deleveraging. Rapid forced closures added momentum to the drop, pushing Bitcoin to session lows before modest stabilization attempts emerged.
Beyond technical breakdowns, broader macro uncertainty contributed to risk aversion. Shifts in interest-rate expectations and cautious positioning across global markets weighed on speculative assets, including cryptocurrencies.
The total crypto market capitalization fell sharply alongside Bitcoin, erasing tens of billions of dollars in value during the session. Ethereum and other major altcoins followed BTC lower, reflecting widespread market weakness.
While intraday rebounds remain possible after such heavy liquidations, Bitcoin must reclaim the $80,000-$82,000 zone to signal short-term stabilization. Until then, traders are watching the mid-$70,000 area as the next potential support level if selling pressure persists.



BitGo’s move creates further competition in a burgeoning European crypto market that is expected to generate $26 billion revenue this year, according to one estimate. BitGo, a digital asset infrastructure company with more than $100 billion in assets under custody, has received an extension of its license from Germany’s Federal Financial Supervisory Authority (BaFin), enabling it to offer crypto services to European investors. The company said its local subsidiary, BitGo Europe, can now provide custody, staking, transfer, and trading services. Institutional clients will also have access to an over-the-counter (OTC) trading desk and multiple liquidity venues.The extension builds on BitGo’s previous Markets-in-Crypto-Assets (MiCA) license, also issued by BaFIN, and adds trading to the existing custody, transfer and staking services. BitGo acquired its initial MiCA license in May 2025, which allowed it to offer certain services to traditional institutions and crypto native companies in the European Union.Read more