Bitcoin slips below $82,000 after gold and silver pullback; $1.7 billion wiped out

Why is bitcoin falling?

• Bitcoin fell 5.85% in 24 hours, hitting a low of $81,311 before partial recovery
• $1.7B in leveraged crypto positions liquidated due to global risk-off sentiment
• LayerZero and Canton rose, while Worldcoin and Lighter fell over 14%.

Did our AI summary help?

Bitcoin slipped to a two-month low early on January 30, which analysts attributed to broader "risk-off" mood in global markets, fall in metal prices and  on speculation that the next US Federal Reserve chairperson might tighten screws on cryptocurrencies.

The world’s largest crypto currency fell to $81,311 before recovering to trade around $83,085, a decline of about 5.85 percent in the past 24 hours. The decline triggered volatility across the crypto market, with over $1.7 billion in leveraged positions liquidated during the period.

"The decline followed a broader global risk-off move triggered by weak tech earnings and a sudden pullback in gold and silver after both hit record highs. Data shows the drop was driven mainly by futures deleveraging, not sustained spot selling," said Riya Sehgal, research analyst, Delta Exchange.

CoinSwitch Markets Desk said in its daily brief that bitcoin is likely to consolidate in the near-term, as weaker leverage has been flushed, reducing immediate downside pressure. "However, a decisive break below $82K could expose $79K–$80K, while sustained upside requires acceptance above $88,500, supported by improving spot demand and ETF flows," they said.

Ethereum was down 6.97 percent, Tehter 0.01 percent, XRP 6.20 percent, Solana 6.37 percent, Dogecoin 5.77  percent, Cardano 6.33, BNB 5.48 percent, USDC 0.02 percent, and Tron lost 0.86 percent in the past 24 hours.

"Amid the bearish wave, a few altcoins like LayerZero and Canton lead the top gainers by 7.45 percent and 6.78 percent jump, followed by DoubleZero and Morpho with minor gains. Besides, Worldcoin and Lighter plunged more than 14 percent each, followed by Chiliz with 13 percent and Hyperliquid and Mantle by over 11 percent each," said CoinDCX Research Team.

Here's how the price of cryptocurrencies moved on January 30 as of 11:08 am IST.

 Why is Bitcoin down? 

"The crypto market saw a sharp pullback alongside equities and gold as rising US–Iran tensions and renewed concerns over a potential US government shutdown pushed investors into risk-off mode ," said Akshat Siddhant, lead quant analyst, Mudrex. Bitcoin presents an attractive opportunity for long-term investors, where gradual, disciplined accumulation can help achieve better risk-adjusted returns over time. Traders should closely watch the $80,600 support level, as a break below it could trigger further downward pressure.

According to WazirX founder Nischal Shetty, bitcoin's drop was largely driven by the liquidation of excess leverage, with over $777 million in long positions liquidated in just one hour. This shows a broader reaction to macroeconomic developments, which have been triggering outsized moves in risk-on assets.