Bitcoin drops below $91,000 triggering $190 million in liquidations, long squeeze intensifies short-term volatility risk

January 20 News, Bitcoin price briefly fell below the $91,000 mark, triggering a sharp market reaction. Data shows that within just four hours, over $190 million in long leveraged positions were forcibly liquidated, with the price rapidly dropping from around $97,000. The peak of liquidations also concentrated near this range. This process exemplifies the typical “long squeeze” phenomenon, where highly leveraged traders are forced to close positions, further amplifying downward pressure.

This Bitcoin decline is not an isolated event. As trade tensions between the US and European countries escalate, global risk assets are generally under pressure. Recent signals from Trump regarding tariffs have increased macro-level uncertainty, prompting some funds to reduce risk exposure temporarily, which has impacted crypto assets. In the past 24 hours, Bitcoin’s price has fallen approximately 1.6%, indicating the market’s high sensitivity to geopolitical and economic policy changes.

Derivatives data is also worth noting. Options market pricing indicates that, as of mid-2026, the probability of Bitcoin falling below $80,000 is priced at around 30%, reflecting traders’ expectations of sustained high volatility in the future. In such an environment, a rapid price decline again could trigger chain reactions of liquidations, especially for high-leverage positions.

Several analysts have pointed out that this round of Bitcoin liquidations serves as a reminder of the importance of risk management. Leverage tools amplify gains but can also quickly magnify losses when market reversals occur. For short-term traders, it remains crucial to control position sizes reasonably, reduce leverage multiples, and closely monitor macro events and on-chain liquidation signals to effectively navigate volatile markets.

From a longer-term perspective, Bitcoin’s structural narrative has not been fundamentally undermined by this correction. However, given the ongoing uncertainties in the global situation, price fluctuations may continue. Paying attention to key support levels, liquidation data, and macro policy trends will help traders respond more prudently to market changes at this stage.