Bitcoin, Ether Extend Declines as Leveraged Unwind Accelerates – Crypto Markets Today

Bitcoin and ether extend declines as leverage unwind accelerates, with $1.8B in liquidations and rising volatility signaling renewed risk-off.

Rich by Coin

2026-01-30

Crypto markets fell further overnight as bitcoin and ether extended losses, metals tumbled and liquidation pressure hit leveraged traders across derivatives markets. Bitcoin and ether extended declines as the crypto market compounded Thursday’s selloff. Silver and gold also fell, adding to broader market weakness alongside a firmer dollar.

Crypto liquidations hit $1.8 billion, while bitcoin dominance slipped as traders rotated into riskier altcoins. The crypto market selloff accelerated overnight with bitcoin BTC$82,976.84 and ether ETH$2,711.82, falling by a further 2.7% and 3.5%, respectively, since midnight UTC to compound Thursday’s miserable session. The drawdown comes alongside heavy losses for precious metals, with silver now trading at $96 following a 20% drop from Thursday’s record high of $121.

Gold is trading back below $5,000 after tumbling by 11% from Wednesday’s $5,600 high. The global market rout, which saw bitcoin hit its lowest level since November, led to $1.8 billion in liquidations across crypto markets. The bitcoin-dominant CoinDesk 20 Index (CD20) is now down by 6.6% since the turn of the year while the altcoin heavy CoinDesk 80 (CD80), outperforming its counterpart, has lost 2.28%. The market swoon shook out leveraged crypto futures bets worth $1.8 billion in 24 hours.

Open interest (OI) in futures tied to most major cryptocurrencies, including bitcoin and ether, has declined alongside large liquidations. DOGE stands out with a 2% increase in OI, which is reflective of traders shorting the dip. Annualized perpetual funding rates for BTC, ETH, XRP and several other tokens have flipped negative, a sign of growing demand for downside bets. Bitcoin’s 30-day implied volatility, as measured by Volmex’s BVIV, jumped to 47% from 40%, indicating a rise in demand for options, or hedging contracts, in the wake of the price selloff.

BVIV is not alone, Wall Street’s equivalent, the VIX, also spiked Thursday. On Deribit, bitcoin and ether puts have become more pricier than calls, indicating a growing demand for downside protection. In ether’s case, traders preferred a put butterfly, a market-neutral limited risk, limited reward play. Bitcoin dominance dropped to 58.73% to suggest that investors are opting for speculative altcoin plays in an attempt to outperform the market.