Glassnode Identifies Four Events That Contributed to the Latest Bitcoin Crash to $81,000

Glassnode has identified four separate events that contributed to the latest Bitcoin crash to the $81,000 region.

Notably, Bitcoin (BTC) has remained under heavy pressure since reaching a local peak of $94,000 on Jan. 14. Despite this weakness, BTC attempted a short-term rebound on Jan. 26, staging a three-day recovery move that lifted prices back above $90,000 by Jan. 28.

However, the recovery has failed to hold. Soon after reclaiming $90,000, Bitcoin has now encountered another intense wave of selling pressure. Within just two days, the price dropped by more than 7%, dragging BTC down to $81,040 before a modest rebound to the current price of $82,800.

As the market absorbed the latest downturn, on-chain analytics firm Glassnode recently identified four different forces that contributed to the selling pressure surrounding Bitcoin.

Key Points

• Bitcoin recently slid to as low as $81,040 after failing to sustain a recovery above $90,000 by Jan. 28.
• Glassnode confirmed that the $90,000 area lacked strong support and identified four factors that contributed to this downtrend.
• One factor is the selloff campaign among long-term holders, who have distributed over 12K BTC per day on average in the last 30 days.
• U.S. spot Bitcoin ETFs also contributed, recording $984 million in outflows since Jan. 27.
• Long liquidations dominated the downturn, with $752 million of $792 million in liquidations over 24 hours coming from long positions.

Long-Term Holder Distribution

In its latest report, Glassnode stressed that the $90,000 price zone showed signs of instability even before the latest drop. Citing options-related data, the firm noted that this level lacked strong support and left Bitcoin vulnerable to sharp declines once selling pressure resumed. It then mentioned four factors that led to the drop.

Glassnode identified long-term holder activity as the first major contributor. Over the past 30 days, long-term holders have distributed more than 12,000 BTC per day on average, translating to about 370,000 BTC per month. This distribution has created ongoing sell-side pressure.

Data from the accompanying chart shows that during the downturn in Q4 2025, long-term holder selling surged to a peak of over 53,000 BTC per day. However, toward the end of 2025, the aggressive selling eased, and the slowdown carried into the start of the new year.

Nonetheless, this relief was temporary. After dropping to a low of around 10,000 BTC per day, long-term holder distribution has started to rise again, 

ETF Outflows and Miner Transfers

The second factor highlighted by Glassnode was a sharp reversal in U.S. spot Bitcoin ETF flows. These products recently began witnessing net outflows, removing a major source of spot demand that had previously helped absorb selling pressure.

After a modest $6.84 million inflow on Jan. 26, which interrupted what would have been nine consecutive days of inflows, Bitcoin ETFs quickly turned negative. 

From Jan. 27 onward, total outflows reached $984 million, with a single intraday withdrawal of $817.87 million, the largest intraday outflow recorded this year. In total, ETFs have posted $1.1 billion in outflows this month.

Glassnode also highlighted renewed miner selling as the third pressure point. After a brief pause earlier in the year, miners resumed transferring Bitcoin to exchanges throughout January. The Net Transfer Volume from miners now sits around -48 BTC.

Long Liquidations

The fourth factor involves a surge in forced liquidations as prices fell. As Bitcoin moved lower, leveraged long positions began to unwind, bolstering the sell-off. Glassnode estimated that roughly $300 million in long liquidations initially kicked in as the downturn emerged.

Over the past 24 hours, total liquidations have reached $792 million, with $752 million tied to long positions alone. This means nearly 95% of all liquidations came from traders betting on higher prices. Yesterday alone, as total liquidations totaled $450 million, long positions accounted for $432.96 million, representing 96% of the total.