Bitcoin dropped more than 7% over the weekend, pushing BTC price under $80,000 and close to its April 2025 low around $74,500. The move sent Bitcoin below the $80,700 true market mean and threatened Strategy's more than 700,000 BTC corporate treasury, which turns negative around $76,037. Analysts highlighted mounting liquidations and key downside levels, including the prior cycle peak at $69,000.

On January 31, 2026, Bitcoin briefly fell to $76,000 after a $3,000 slide within five minutes. The Kobeissi Letter said a $1 billion levered long was liquidated at 1:43 PM ET, while CoinGlass showed the day’s largest single liquidation was $222 million on Hyperliquid. BTC later rebounded toward $78,000.

As of Jan. 30, U.S. spot Bitcoin ETFs have posted four straight days of net outflows totaling $509.70 million, reflecting sustained selling pressure during a broader crypto market downturn. Bitcoin traded around $83,910 during the latest session, while overall ETF net assets fell 6.38% to $106.96 billion even though cumulative net inflows still stand at $55.01 billion. BlackRock’s IBIT accounted for most of the withdrawals with $528.30 million in outflows, partly offset by smaller inflows into funds from Fidelity and ARK & 21Shares.

Bitcoin has broken down from a daily flag, putting the $80K demand area in focus amid risk-off sentiment tied to headlines about President Trump's pick to replace Jerome Powell. The 4-hour view points to a potential corrective move toward the $88K supply zone. On-chain Realized Price age bands show shorter-term holders under pressure as price approaches historically active accumulation ranges.

On 31 January 2026, Tennessee legislators reviewed a proposal to permit the state treasurer to buy Bitcoin using select public funds. Exposure would be phased in across fiscal years under strict annual and portfolio caps, and the policy applies only to Bitcoin. If holdings rise in value, the state would not be forced to sell to remain within limits.

Analyst Maelius said in an X post that Bitcoin could still drop below $60,000 before a cyclical bottom, pointing to BTC dominance not having rolled over yet. He contrasted this with the 2017 and 2021 patterns. BTC traded around $83,900 at the time of writing.

In December 2025, the Producer Price Index rose 0.5% month-over-month and 3.0% year-over-year, with core PPI climbing to 3.3%, the highest since July 2025. Bitcoin slid under $82,400 as Fed funds futures shifted to just 52 basis points of expected cuts across 2026, with the first move seen in June. Persistent services inflation and elevated real yields around 1.90% now frame key scenarios for rates and Bitcoin ahead of the Feb. 20 PCE release.

Bitcoin has come under pressure following a sharp pullback, but short‑term support levels are still holding and momentum indicators point to fading downside pressure. Technical signals such as an RSI reading in the low‑30s on the 4‑hour chart and a contracting MACD histogram align with analyst views that the move is corrective rather than a structural breakdown. Some analysts see the current phase as quiet accumulation after a sentiment flush, with risk‑reward favoring cautious long setups as long as critical support zones remain intact.