On Thursday (January 29), the crypto market experienced a significant "deleverage" trend: Bitcoin prices fell below $85,000 for the first time in two months, with an intraday drop of about 6.8%, reaching a low of approximately $83,240, marking a new low since late November. Ethereum, Dogecoin, Cardano, and Solana also recorded larger declines, causing market sentiment to quickly turn cautious.
Price Drop: From Bitcoin to Mainstream Tokens
This correction is not a "single event." As Bitcoin weakened, mainstream altcoins also fell simultaneously, indicating that funds tend to withdraw entirely from high-volatility assets when risk appetite diminishes, rather than merely rotating among different coins.
Leverage Unwinding: Over $1 Billion Liquidated in 24 Hours, Mainly from Long Positions
More attention should be paid to the leverage structure behind the volatility. Data shows that in the past 24 hours, the crypto market liquidation scale exceeded $1 billion, with passive liquidation of long positions around $923 million and short positions about $120 million—indicating that the main pressure comes from a "long squeeze" rather than a short covering.
Derivative Signals: Defensive Posture Increases, Funds Not Strongly Betting on Direction
Several institutional trading desks are expressing a consistent viewpoint: derivative positions appear to be more about "risk reduction" rather than "betting larger amounts." A Wintermute representative mentioned the market remains in a defensive state; meanwhile, CME Bitcoin futures open interest hovers near annual lows, and the funding rate for perpetual contracts is close to neutral, reflecting limited directional confidence from speculative funds.
Related Stocks under Pressure: Exchanges and Mining Companies Weaken
The crypto asset pullback also transmitted to US stock "crypto concept" stocks: Coinbase and MARA saw declines of around 5%, with Strategy (formerly MicroStrategy) showing a more significant drop. The market is once again pricing the "token price—sentiment—leverage—stock beta" chain.
Macro Clues: Yen Carry Trade Reversal Viewed as Source of Liquidity Pressure
Some strategists are focusing on broader "liquidity variables." Matt Maley from Miller Tabak points out that yen carry trades (borrowing low-interest yen and allocating to high-yield assets) when unwound en masse typically correlate with global liquidity tightening; Bitcoin and other crypto assets are more sensitive to liquidity changes, exhibiting the feature of "rising with ample liquidity, falling with reduced liquidity," which becomes more pronounced during drastic fluctuations.
Next Focus: $80,000 Support and Whether Deleverage Will Slow Down
Given the combination of weakened risk appetite, accelerated liquidations, and anticipated tighter liquidity, the market’s short-term focus is on whether the $80,000 level can provide effective support and if the intensity of liquidations significantly cools down. If deleveraging continues to spread, volatility may remain in a high range.
