$BTC Bitcoin (BTC) has taken another significant hit, following the chaotic sell-off in gold and silver. It has officially entered a zone of "Extreme Fear," with the Fear & Greed Index plunging to 16—its lowest level in over a year.
As of Saturday morning, January 31, 2026, here is the breakdown of the second wave of the crash:
1. The Numbers (USD)
• Current Price: Stabilizing weakly around $83,500 – $83,900.
• The New Low: After losing the crucial $84,000 support level, BTC crashed to an intraday low of $81,064.
• Mass Liquidations: This "hit" triggered over $1.75 billion in liquidations across the crypto market. Traders betting on a bounce were caught in a "long squeeze," forced to sell as prices tumbled.
2. Why the "Double Hit"?
• Government Shutdown Risk: Markets are on edge as the U.S. faces a January 31 deadline (today) to avert a government shutdown. On-chain bettors now put the chance of a shutdown at over 60%, causing investors to dump risky assets like BTC for cash.
• The "Warsh" Factor: The nomination of Kevin Warsh to lead the Fed has signaled a much tougher stance on inflation. This has boosted the U.S. Dollar to its strongest level in months, which acts like a lead weight on Bitcoin's price.
• Tech Stock Contagion: A major sell-off in Big Tech (especially AI-related stocks) on Thursday and Friday spilled over into crypto, as institutional "bots" tend to sell both at the same time during periods of uncertainty.
3. Critical Levels to Watch
• The "Floor" ($80,000): This is the psychological line in the sand. If BTC closes a daily candle below $80k, some analysts (like those at Cointelegraph) warn of a deeper slide toward the $70,000 – $75,000 range.
• Recovery ($89,000): BTC needs to climb back above $89k to cancel the "bearish" signal. Until then, any small rally is being viewed by traders as a "dead cat bounce."
open interest on exchanges like Binance is actually rising. This suggests that while some are panicking, professional traders are already rebuilding positions, betting on a "liquidation revenge rally" back toward $90k once the shutdown fears pass.#bitcoinagainpowerup #CZAMAonBinanceSquare