Total Liquidations in the Last 24 Hours: $78.792 million, Largest Single Liquidation

Bitcoin liquidations surged past $360 million in the last 24 hours, the largest since October 2025. This rise coincided with a 6.7% price increase over two days. The largest single liquidation occurred on HTX, wiping out a position worth $34.9 million.

The uptick in liquidations followed a $1.25 billion BTC purchase by Strategy and strong inflows into Bitcoin ETFs. Bitwise noted a strong correlation between institutional demand and price movement over the past year.

Exchange-based BTC supply dropped to a seven-month low of 1.18 million BTC, and the number of BTC holders decreased by nearly 48,000 in two months, a trend that has preceded price gains.

Why Did This Happen?

Bitcoin's recent price movement has been closely tied to institutional activity. Strategy's large BTC purchase and net inflows into ETFs signaled strong institutional interest. At the same time, the supply of BTC on exchanges fell, indicating reduced selling pressure.

Santiment noted that a decline in the number of BTC holders is a sign of market consolidation. This trend has preceded price increases on three occasions in the past two months.

How Did Markets React?

Bitcoin miners and data center operators outperformed the asset itself in early 2026. U.S.-listed mining stocks added $13 billion in market capitalization in the first two weeks of January, with 10 of 14 operators posting stronger returns than Bitcoin's 9% gain.

Crypto markets remain volatile as the Clarity Act stalls and the White House threatens to withdraw support. Bitcoin prices dropped after Coinbase's Brian Armstrong withdrew support for the bill, citing regulatory risks to tokenized equities and stablecoin rewards.

What Are Analysts Watching Next?

Analysts are tracking the impact of the stalled Clarity Act on regulatory clarity and investor sentiment. Coinbase's withdrawal of support raised concerns about the bill's viability, while the White House's potential withdrawal of support added further uncertainty.

New crypto projects like Mutuum Finance (MUTM) are gaining traction. The project has raised $19.8 million with over 18,800 early investors. Its V1 protocol includes lending mechanics, liquidation logic, and mtToken mechanics and is entering a testnet phase according to project reports.

Market participants are also watching the Fed's upcoming policy decisions and economic data releases, including the December CPI report. These could influence the timing of any further rate cuts.

Financial risk management software and transaction monitoring markets are also expanding rapidly, driven by regulatory compliance and digital transformation. The financial risk management software market is expected to reach $12.91 billion by 2033.