On January 27, 2025, Bitcoin plummeted below $100,000 during Asian trading hours, dropping over 6% to a low of $97,000 before recovering slightly to $99,290. This decline marks the end of a rally that saw Bitcoin reach an all-time high of $109,000 ahead of Donald Trump's inauguration.
Analyst Arthur Hayes warned of potential further declines to between $70,000 and $75,000, although he remains optimistic for a year-end target of $250,000, citing financial instability and monetary easing as catalysts.
Other major cryptocurrencies, including Ethereum and BNB, mirrored Bitcoin's downturn, with losses up to 9%. The broader market also felt the impact, with US stock indices showing a decline, particularly the Nasdaq 100, which fell over 2%. The Kobeissi Letter projected a potential $1 trillion loss in US equity markets.
The volatility triggered a liquidation event, with over $855 billion wiped out, affecting more than 313,000 traders. Long traders faced the heaviest losses, totaling $794 billion, while Bitcoin liquidations alone accounted for approximately $259 million, with $247.5 million from long positions.
The largest liquidation occurred on HTX, involving a $98 million BTC-USDT long position.