Mass liquidations have pushed Bitcoin out of the top 10 global assets

Bitcoin is losing credibility

Bitcoin has dropped out of the top 10 assets by market capitalization for the first time since late 2024, following a massive liquidation event that wiped out approximately $2.8 billion from leveraged positions on centralized and decentralized exchanges over the past 48 hours , according to data compiled by CoinGlass , Coingecko , and Bloomberg .

This move was driven by a combination of falling spot prices and high leverage in the derivatives market. As Bitcoin broke through key technical thresholds, leveraged long positions were automatically liquidated , accelerating the price decline. In the cryptocurrency market, these feedback loops are particularly strong when price drops trigger liquidations, creating additional selling pressure and pushing prices even lower.

As of January 29, 2026 (12 PM UTC), Bitcoin's market capitalization was approximately $1.78–$1.82 trillion , ranking 11th globally — after:

BTC dropped below $89,000 during the bull run — its lowest level since mid-December 2025 — before recovering to $91,000–$92,500.

What caused the wave of liquidations?

Compared to traditional asset classes, the cryptocurrency market operates with higher leverage and fewer circuit breaker mechanisms. This makes them more responsive to changes in sentiment, but also more vulnerable to crowded trading.

This collapse was triggered by a combination of factors:

• Macro-level catalysts — Stronger-than-expected US retail sales data + higher-than-expected PCE index have fueled concerns about the Fed delaying interest rate cuts / “higher interest rates for a longer period.”

• Excess leverage — Open interest on major perpetual futures platforms (Binance, Bybit, OKX, Deribit) has reached record highs ( $85-90 billion across all cryptocurrencies ).

• Massive buy orders — The initial drop in BTC from $96,000 to $92,000 triggered liquidation of approximately $1.4 billion in long positions , forcing a sell-off that bottomed out at $89,000 , resulting in total liquidations exceeding $2.8 billion (approximately $1.9 billion for BTC, $420 million for ETH, and $480 million for altcoins).

• Interest rate declines — Perpetual contracts are turning into deep negative territory, increasing pressure to deleverage.

The latest wave of liquidations reinforces a recurring lesson: Bitcoin's sharpest price drops are often more mechanical than fundamental, driven by imbalances in market positions rather than changes in adoption levels or network health.

Volatility is the price of investing.

For institutional investors, periods like these are increasingly seen as part of the asset's risk rather than an existential threat. Spot ETFs, managed custody services, and deeper liquidity have mitigated structural risk—but they haven't eliminated volatility.

In fact, as Bitcoin becomes increasingly integrated into global investment portfolios, short-term capital flows are likely to increase rather than decrease, as macro funds, ETFs, and system strategies rebalance their exposure to the market.

Assessment and Conclusion

The massive liquidation of approximately $2.8 billion was a major shock — but it was also a healthy debt reduction. Bitcoin's drop out of the top 10 assets is largely symbolic; the underlying accumulation trend (by institutions, businesses, and countries) remains firmly in place. Markets rarely rise vertically — especially after a more than 100% surge from the 2025 lows. Today's liquidation helps eliminate excessive debt positions and sets the stage for the next bull run once macroeconomic conditions stabilize or shift back toward risk-taking.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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