Bitcoin dropped below $87,000 on Sunday, January 25th, amid market stress from U.S. political risks. The decline triggered over $677 million in total crypto liquidations, with longs accounting for $606 million. Analysts point to falling Open Interest and bearish on-chain metrics, indicating continued seller dominance and elevated risk.
Bitcoin fell below $87,000 on Sunday, January 25th, after U.S. President Donald Trump threatened a 100% tariff on Canada and news of an expected government shutdown emerged. This drop prompted a cascade of liquidations across the cryptocurrency market.
In the past 24 hours, $677.1 million worth of positions were liquidated, according to CoinGlass data. Of that total, $606.2 million were long positions, highlighting significant pressure on bullish bets.
Analyst Darkfost highlighted a falling Open Interest for Bitcoin, a trend progressing since November. The 7-day moving average of the Taker Buy/Sell Ratio has remained below one, reflecting that bears are the dominant market orders driving the price down.
Another analyst, Axel Adler Jr, stated the previous week was an “accelerated deterioration mode” for BTC. The Net UTXO Supply Ratio fell into an “elevated risk zone,” degrading from 0.452 to 0.319 between January 19th and 25th.
If real demand does not appear, the analyst warned, the probability of continued weakness and further lows remains high. Broader market sentiment was fearful as traders navigated the week. On-chain metrics agreed any short-term price bounces were part of a broader downward impulse.
