Glassnode Reveals Four Key Events Behind Bitcoin Crash to $81K

TLDR

• Glassnode identified four major factors that contributed to Bitcoin’s crash to $81,000.
• Long-term holders have been distributing over 12,000 BTC daily, increasing sell-side pressure.
• U.S. spot Bitcoin ETFs experienced massive outflows totaling $984 million since January 27.
• Miner selling resumed in January, adding further downward pressure on Bitcoin’s price.
• Forced liquidations of long positions reached $792 million, intensifying the market downturn.

Bitcoin has faced substantial pressure following its local peak of $94,000 on January 14. Despite an attempt to rebound above $90,000 by January 28, the cryptocurrency fell sharply within days. By January 30, Bitcoin’s price had dropped to $81,040, with a modest recovery bringing it to $82,800. Glassnode, a leading on-chain analytics firm, has outlined four key events that contributed to this sharp decline.

Long-Term Holder Distribution Increases Selling Pressure

Glassnode highlights the distribution of Bitcoin by long-term holders as one of the primary factors behind the recent crash. Over the last 30 days, long-term holders have been selling an average of 12,000 BTC daily, which amounts to roughly 370,000 BTC each month. This consistent distribution created ongoing selling pressure, which weakened Bitcoin’s price stability.

In the latter part of 2025, long-term holders’ selling slowed, briefly reducing downward pressure. However, this relief did not last long. As 2026 began, the distribution resumed, further contributing to the downward movement and reinforcing market instability.

Bitcoin ETF Outflows Contribute to Selling Pressure

The second factor identified by Glassnode is the reversal in U.S. spot Bitcoin ETF flows. On January 26, Bitcoin ETFs experienced a rare inflow of $6.84 million, briefly breaking a nine-day streak of outflows. However, from January 27 onward, Bitcoin ETFs saw massive outflows, totaling $984 million, including a single-day withdrawal of $817.87 million—the largest intraday outflow of the year.

This sharp reversal of ETF flows has removed a key source of demand for Bitcoin. As these outflows continued, the selling pressure increased, compounding the price decline. In total, Bitcoin ETFs have seen outflows of $1.1 billion since January 27, contributing significantly to the recent crash.

Miner Selling and Liquidations Drive Bitcoin Crash

Moreover Bitcoin crash has renewed selling activity by miners. After a brief pause in the early part of 2026, miners resumed transferring Bitcoin to exchanges in January. Glassnode’s data indicates a Net Transfer Volume of -48 BTC from miners, signaling that miners have been actively selling their holdings.

Miner activity often acts as a market signal, and this increase in selling added to the pressure on Bitcoin’s price. Combined with the other factors, it created an environment ripe for further declines. As a result, Bitcoin struggled to maintain its value as it approached the $90,000 mark.

The final factor contributing to the Bitcoin crash is the surge in forced liquidations. As Bitcoin’s price fell, traders who had taken leveraged long positions began to unwind their positions. Over 24 hours, a staggering $792 million in liquidations occurred, with $752 million of this total coming from long positions. This rapid liquidation further amplified the selling pressure and led to Bitcoin’s sharp drop.

The liquidation of long positions represents a substantial portion of the overall downturn. In the last 24 hours alone, long positions accounted for 96% of the total liquidations, underscoring the dominance of forced selling in the price drop.

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