Overview
- Bitcoin sank to about $60,000, its weakest level since October 2024, before surging back to $70,000–$71,000 in one of its sharpest single-day recoveries in years.
- Exchanges forced more than $2.6 billion of futures liquidations in 24 hours, largely long positions, with an additional $700 million wiped out in a four-hour window.
- Options and funding data signaled caution as implied volatility spiked, put demand dominated with strikes clustered around $60,000–$50,000, and funding rates turned negative.
- The global crypto market value has shrunk by roughly $2 trillion since early October, including over $1 trillion in the past month, reflecting broad risk aversion tied to tech and metals turbulence.
- Institutional flows remain weak with U.S. spot bitcoin ETFs posting more than $3 billion of January outflows, while crypto-linked equities faced pressure and Strategy reported a $12.4 billion quarterly loss tied to bitcoin markdowns.