Bitcoin and Ether Extend Declines as Leverage Unwind Accelerates: Crypto Markets Today

Bitcoin and ether extended their declines on January 30, 2026, as leveraged positions across crypto markets faced aggressive unwinding. A sharp sell-off in Bitcoin and ether triggered over $1.7 billion in liquidations, with long positions accounting for nearly 93% of the losses. The decline accelerated broader risk-off sentiment, with traders rotating into traditional safe-haven assets such as gold and silver.

The unwinding of leverage was particularly concentrated on platforms like Hyperliquid, Bybit, and Binance, where leveraged traders were caught off balance as Bitcoin dropped below $85,000. The largest single liquidation amounted to $80.57 million in a BTC-USDT position on HTX, highlighting the vulnerability of highly leveraged positions.

Arthur Hayes, former CEO of BitMEX, attributed Bitcoin's fall to a $300 billion liquidity drain and tighter financial conditions. He noted that liquidity has long been a key driver for Bitcoin and other risk assets, with periods of expansion often coinciding with strong rallies. Conversely, tighter conditions typically pressure speculative assets.

Why Did This Happen?

Bitcoin and ether's decline was also driven by macroeconomic and geopolitical factors. The Federal Reserve's hawkish stance and ongoing tensions in the Middle East have reduced demand for speculative investments. At the same time, Bitcoin futures open interest has dropped 42% from recent record highs, indicating weakened conviction among traders.

U.S. listed spot bitcoin and ether ETFs also saw nearly $1 billion in outflows as crypto prices tumbled. BlackRock's IBIT led the exodus, losing $317.8 million in a single day. Fidelity's FBTC and Grayscale's GBTC also posted substantial outflows. These redemptions reflect institutions cutting overall crypto exposure amid rising volatility and the aggressive unwinding of leveraged positions.

How Did Markets React?

The selloff was accompanied by broader market weakness. Precious metals like silver and gold also fell sharply, with silver hitting a 20% decline from recent highs. The U.S. dollar index (DXY) rose 0.57% as investors sought safety.

Derivatives positioning showed a bearish shift. Bitcoin's 30-day implied volatility, as measured by Volmex's BVIV, jumped to 47%, indicating increased demand for options as traders hedged against further downside. On Deribit, put options for Bitcoin and ether became more expensive than calls, reflecting a growing appetite for downside protection.

The market's technical outlook also turned bearish. Bitcoin is now trading below key moving averages, including the 50-day, 100-day, and 200-day EMAs. Ethereum also slid below $3,000, with its RSI and MACD indicators confirming bearish momentum.

What Are Analysts Watching Next?

Analysts are closely monitoring Bitcoin's ability to reclaim key support levels, particularly the $80,600 level. A break below that could extend the decline toward the 1.272 Fibonacci extension at $75,887. Ethereum, meanwhile, is under pressure to defend its $2,900 support level.

On the regulatory front, Russia is preparing to roll out its first comprehensive framework for crypto trading, with the rules expected to be approved by mid-2026. The framework will allow both qualified and non-qualified investors to trade Bitcoin and ether, with caps on retail purchases.

Bitcoin dominance, which currently stands at 59%, remains a key metric for tracking the broader market. A move above 60% could signal a transition to altcoin outperformance, though structural barriers such as capital dilution and token unlock pressure remain.

Investors are also keeping an eye on macroeconomic developments, including the Federal Reserve's next rate decision and geopolitical tensions, which could influence risk appetite and liquidity conditions.