Headline: Bitcoin breaks under $87K as geopolitical noise and shutdown fears spark $677M in liquidations Bitcoin slipped below $87,000 on Sunday, January 25, after headlines about U.S. political risk — including President Donald Trump’s threat of a 100% tariff on Canada and an anticipated U.S. government shutdown — helped trigger a sharp sell-off and a cascade of liquidations. Key moves and market impacts - Liquidations: CoinGlass data shows roughly $677.1 million of crypto positions were liquidated in the 24 hours around the drop, with longs accounting for $606.2 million of the total. - Directional pressure: Crypto derivatives and on-chain indicators point to continued downside momentum rather than a fresh bullish trend. What the analysts are saying - Open Interest: Analyst Darkfost noted on X that Bitcoin’s Open Interest (OI) has been declining since November. Although OI ticked up briefly in the first week of January, that was only a short-lived bounce. Darkfost argues that a sustained rise in OI would be needed to support a meaningful trend reversal — something that hasn’t happened yet. (Source: Darkfost on X; derivatives data via CryptoQuant) - Taker activity: The Taker Buy/Sell Ratio — which tracks which side (buyers or sellers) is executing market taker orders and how aggressively — has averaged below 1 on a 7‑day moving basis, aside from the first week of January. A sub-1 reading signals taker-sell dominance, meaning bears have been the more aggressive participants. (Source: Axel Adler Jr) - On-chain demand: Axel Adler Jr described last week as an “accelerated deterioration mode” for BTC. His Net UTXO Supply Ratio fell into what he calls an “elevated risk zone,” dropping from 0.452 on January 19 to 0.319 on January 25. He warned that intermittent bounces have been “mere noise” inside a larger downward impulse and that, without renewed real demand, the odds favor continued weakness and lower prices. Takeaway for traders Market indicators — falling OI, taker-sell dominance, and deterioration in on-chain demand metrics — together suggest the derivatives and spot markets are deleveraging as Bitcoin trends lower. Sentiment is currently skewed toward fear, so traders and investors should factor elevated risk into their plans this week. Disclaimer: AMBCrypto’s content is informational only and not investment advice. Cryptocurrency trading carries high risk; readers should perform their own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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