Bitcoin (CRYPTO: BTC) experienced a significant drop, falling below the $80,000 mark on Saturday. This sharp decline has triggered a widespread crash in the cryptocurrency market.
On January 31, Bitcoin’s value plummeted by 5% within a span of 24 hours, trading at $78,479.21. This downfall had a domino effect on other cryptocurrencies as well. Ethereum (ETH) dropped around 12% to $2,395.58, BNB by 8% to $779.57, XRP by 11% to $1.56, and Solana (SOL) by 11% to $103.44.
The total market cap of the crypto market also suffered, declining by over 6% to $2.73 trillion. In just five hours, over $100 billion of market cap disappeared.
Data from CoinGlass revealed that crypto positions worth over $1.61 billion were liquidated. Ether led the liquidation with $560 million, followed by Bitcoin with $481 million and Solana with $95 million. In total, 358,161 traders were liquidated.
The largest single liquidation order was an Ether order worth $13.38 million on Hyperliquid.
This significant market downturn marks the lowest price for cryptocurrency since April 2025, when Bitcoin crashed following the announcement of “Liberation Day” tariffs by President Donald Trump.
This recent development has raised questions about Bitcoin’s role in broader portfolios, as it struggles to serve as a momentum play or a hedge against monetary debasement.
Why It Matters: The recent crash in the cryptocurrency market, led by Bitcoin’s sharp decline, has raised serious concerns about the stability and reliability of digital currencies. The substantial liquidation of crypto positions further underscores the high-risk nature of crypto investments.
Moreover, the simultaneous crash of gold, a traditional safe-haven asset, has left investors scrambling for alternatives. This situation highlights the need for a diversified investment portfolio and the importance of risk management in the volatile world of cryptocurrencies.
Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.
This article Bitcoin Falls Below $80,000, Down 5% Over Past 24 Hours originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
