Bitcoin’s Dramatic Dive: $2.6 Billion Liquidation Circus Unfolds!

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Ah, the mercurial Bitcoin; it has plummeted beneath the once-mighty $80,000 threshold, nosediving into a pit of despair, dragging $2.6 billion in trader dreams down with it.

According to the ever-so-reliable BeInCrypto oracle, our dear token experienced a 6% tumble, plummeting to a rather tepid $77,082 before daring to make a feeble recovery. A low not seen since the halcyon days of April 2025-what a time to be alive!

The Bitcoin Plunge: A Dip Below ‘Fair Value’-A First in Eons!

In this tragic comedy of errors, Bitcoin has sunk below critical on-chain benchmarks for the first time since the dinosaurs roamed-or at least since anyone was wearing bell-bottoms.

Glassnode’s sage data reveals our beleaguered Bitcoin has dipped below its True Market Mean of $80,500 for the first time in a staggering 30 months. The last time it was this low, in late 2023, it was but a mere shadow of itself, trading around $29,000.

Historically speaking, such a breach heralds the ominous transition from jubilant bull cycles to the somber embrace of mid-term bear markets. How poetic!

As a result, those poor Bitcoin holders are now facing a grim reality, with their Short-Term Holder Cost Basis soaring to an eye-watering $95,400, while the Active Investor Mean lounges comfortably at $87,300.

With spot prices frolicking far beneath these lofty averages, the market is now burdened with a veritable mountain of unrealized losses-like a bad sitcom that just won’t end.

This technical debacle ignited a wild deleveraging spree across global derivatives exchanges, reminiscent of a chaotic circus act gone wrong.

Data from CoinGlass reveal that this catastrophe led to the liquidation of approximately $2.58 billion in trader positions-an impressive feat of financial acrobatics.

Notably, the carnage mercilessly targeted one side of the market as “long” positions-those optimistic bets on a price rebound-accounted for a staggering $2.42 billion of the total losses. Truly, the largest long liquidation event in three months, and what a spectacle it was!

Ethereum traders bore the brunt of this calamity, racking up liquidations worth $1.15 billion, while Bitcoin-related wipes totaled a modest $772 million-just a drop in the bucket of this financial tempest.

This massive “long squeeze” reveals that participants had overzealously leveraged their positions to keep the $80,000 floor intact, only to be crushed beneath the relentless momentum of decline. Oh, how the tables have turned!

CryptoQuant’s oracle, Ki Young Ju, attributes this substantial drop to a complete exhaustion of BTC’s buyer liquidity, likening it to a magician who suddenly runs out of rabbits to pull from his hat. He cites a “flatlined” Realized Cap, confirming that the fresh capital necessary to sustain a bull market has vanished into thin air.

Bitcoin is dropping as selling pressure persists, with no fresh capital coming in.

Realized Cap has flatlined, meaning no fresh capital. When market cap falls in that environment, it’s not a bull market.

Early holders are sitting on big unrealized gains thanks to ETFs and MSTR…

– Ki Young Ju (@ki_young_ju) February 1, 2026

Ju further muses that while early investors bask in the glow of profits from their holdings acquired during the euphoric 2025 surge, no new institutional “blood” exists to absorb the landscape’s ample supply.

“MSTR was a major driver of this rally. Unless Saylor significantly dumps his stack, we won’t see a -70% crash like previous cycles,” he adds, like a soothsayer reading tea leaves.

With all this in mind, he speculates that the market will likely drift into a “wide-ranging sideways consolidation,” akin to waiting at a bus stop with no bus in sight.

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2026-02-01 14:05