Risk-off sentiment triggers crypto rout as Bitcoin, Ethereum slide sharply

The cryptocurrency market experienced one of its sharpest corrections in recent months, with over $1.7 billion in leveraged positions liquidated within 24 hours. Bitcoin slipped 7 per cent to around $82,000, marking its lowest level in two months, while Ethereum dipped below $2,750.

 

The losses were broad-based. Solana (SOL) and Cardano (ADA) fell 7.4 per cent each, while XRP declined 6.4 per cent, highlighting a market-wide correction. Stablecoins remained largely steady, suggesting capital rotation rather than outright outflows. Meme and mid-cap tokens, including Dogecoin (DOGE) and Shiba Inu (SHIB), registered sharper losses.

Risk-off sentiment, deleveraging drive sell-off

Analysts attributed the decline to a broader global risk-off move. “The decline followed a wider 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 at Delta Exchange.

 

Bitcoin continues to trade in a range between $94,000 and $84,000, with $80,000 acting as key support. At last check, the world’s largest cryptocurrency was trading at $82,825.45, down 6.15 per cent, with a 24-hour trading volume of $76.55 billion, according to CoinMarketCap. Over the past 24 hours, Bitcoin fluctuated between $81,071 and $88,330. The digital asset is now nearly 34 per cent below its all-time high of $126,198, recorded on October 7, 2025.

 

Ethereum (ETH) was trading at $2,746, down 7.07 per cent, with a 24-hour trading volume of $42.93 billion. The token moved between $2,689 and $2,963 during the same period, according to CoinMarketCap.

 

According to Vikram Subburaj, CEO of Giottus, the immediate trigger for Bitcoin’s decline was a decisive break below the $85,000 support zone, which had acted as a short-term floor through much of mid-January.

 

 

“Once breached, the decline was amplified by derivatives-led liquidations as leveraged long positions were forced out in thin liquidity. On-chain indicators tracked by Glassnode and CoinDesk showed a large cluster of recent buyers sitting ‘underwater’, with short-term holder cost bases concentrated above $88,000. This is a classic setup for momentum-driven selling when support gives way,” Subburaj said.

 

ETF flows added to the pressure. US spot Bitcoin ETFs recorded a net outflow of roughly $485 million on January 29, led by redemptions from large funds such as BlackRock’s IBIT and Fidelity’s FBTC, according to Farside Investors. While final figures for January 30 were still being compiled at the time of writing, market participants, analysts said, broadly characterised flows as weak, reinforcing the view that institutional dip-buying was largely absent during the sell-off.

 

Macro conditions also weighed on sentiment. Analysts noted that risk appetite softened across global markets as investors reassessed the outlook for monetary easing.

 

 

“The US Federal Reserve’s recent pause, coupled with ‘higher-for-longer’ rate expectations, kept Treasury yields elevated. That environment has tended to weigh on non-yielding and risk-sensitive assets such as crypto,” said Subburaj.

Technical outlook

From a technical standpoint, immediate support for Bitcoin, according to Subburaj, is now seen around $82,000, followed by a more critical band near $79,000–80,000 if selling resumes. “On the upside, Bitcoin faces stiff resistance between $90,000 and $92,000, with a broader supply overhang extending toward $95,000,” he said.

 

Sehgal, on the other hand, believes short-term momentum remains bearish. However, she noted that if Bitcoin and Ethereum hold key support levels near $80,000 and $2,700, respectively, the market may stabilise as volatility cools.