Bitcoin Hits 15-Month Low as $682 Million in Liquidations Rock Crypto Markets — Trump Crypto Probe and Options Expiry Add Fuel
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Crypto news today is wild.
Bitcoin just plunged to a 15-month low, hundreds of millions were wiped out in liquidations, and a surprise congressional probe into Trump-linked crypto activity has traders on edge. Add nearly $4.5 billion in options expiring and shifting geopolitical winds, and you’ve got a market sitting on a knife’s edge.
Let’s break down exactly what’s happening — and why the next 48 hours could define crypto’s short-term direction.
Bitcoin Crashes Below $70,000 Before Partial Recovery
Bitcoin dominated headlines after briefly falling below $70,000 on Bitstamp during Asian trading hours, touching an intraday low of $69,101.
This move capped off a brutal week-long selloff that erased nearly $500 billion from the total crypto market.
Since that low, Bitcoin has staged a partial rebound and is now trading around $76,000, while the broader market clawed back more than $100 billion in just the past 24 hours.
Altcoins helped stabilize sentiment, with Ethereum rallying roughly 4%–5% during the recovery.
Why this matters:
This price action highlights crypto’s sensitivity to global risk-off events and reminds traders just how quickly leverage can amplify downside moves. If you’re actively trading, this is a clear signal to stay disciplined with position sizing and risk.
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$682 Million Liquidated as Leverage Gets Wiped Out
The volatility triggered a massive liquidation cascade.
In the past 24 hours alone, approximately $682 million in leveraged positions were wiped out — with long traders taking the brunt at about $509 million.
Ethereum wasn’t spared either, briefly dropping to $2,110 before recovering above $2,200. Funding rates flipped negative during the chaos, signaling aggressive long unwinds and rising bearish sentiment.
This type of flush often represents a classic leverage reset.
Historically, these moments can either mark:
The start of deeper downside
Or a temporary bottom before a relief rally
Which path we take depends heavily on what happens next with options expiration and macro sentiment.
Michael Burry Sounds Alarm on Bitcoin’s Speculative Risk
Adding fuel to the debate, famed investor Michael Burry — known for calling the 2008 financial crisis — warned that Bitcoin is behaving as a purely speculative asset in this environment.
He suggested Bitcoin’s decline could create cascading effects for corporate treasury firms holding BTC on their balance sheets, raising concerns about forced selling if prices continue falling.
His comments have reignited discussion around long-term holding strategies versus short-term volatility exposure.
House Probe Targets Trump-Linked Crypto Firm
On the regulatory front, a U.S. House investigation is now examining World Liberty Financial, a Trump-linked crypto company.
The probe centers on reports of:
A $500 million UAE investment stake
The firm’s involvement in a $2 billion Binance-related transaction
Former President Trump has denied any conflicts of interest, but the scrutiny could reshape how political involvement in crypto is perceived — especially as regulatory clarity remains a major catalyst for institutional adoption.
For investors watching policy closely, this is a developing story worth monitoring.
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$4.5 Billion in Bitcoin and Ethereum Options Set to Expire
One of the biggest near-term catalysts is the upcoming options expiration.
Nearly $4.5 billion worth of Bitcoin and Ethereum contracts are set to expire, with:
Bitcoin max pain near $90,000
Ethereum max pain around $3,100
Put-to-call ratios currently signaling bearish sentiment
This setup creates the potential for sharp price swings as market makers rebalance and traders reposition.
If bulls step in aggressively, this expiration window could spark a short-term relief bounce.
If not, volatility may accelerate.
Geopolitical Relief Offers a Glimmer of Hope
Not all the news is negative.
Markets received a modest boost from easing geopolitical tensions, including:
A U.S.–India trade agreement reducing tariffs
Scheduled U.S.–Iran talks on February 6, improving global risk appetite
These developments helped stabilize equities and crypto alike, providing some breathing room after the selloff.
Rumors Swirl Around GameStop’s Bitcoin Holdings
In an intriguing twist, unconfirmed reports suggest GameStop may have sold its Bitcoin holdings just before the recent slide — potentially avoiding major losses.
While not officially confirmed, the rumor underscores how corporate treasury decisions can quietly influence market dynamics behind the scenes.
Final Take: Bearish Pressure Meets Emerging Support
Right now, the crypto market sits in a fragile balance.
On one side:
Heavy selling pressure
Negative funding rates
Bearish options positioning
On the other:
Reduced leverage
Geopolitical relief
A partial market rebound
The overall tone remains cautious, but if key support levels hold and options expiration triggers short covering, we could see a near-term bounce.
The next major move likely hinges on how traders react to this expiration window.
What to Watch Next
Bitcoin’s reaction around current support
Options expiration volatility
Funding rate shifts
Regulatory headlines
Macro risk sentiment
Stay sharp — this is where disciplined traders separate from emotional ones.
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Quick disclaimer: I’m not a licensed financial advisor. This is for educational purposes only. Crypto is volatile—never invest more than you can afford to lose, do your own research!
