Crypto liquidations spike to $750M as Bitcoin slides from $95.4k to ≈$86k amid yen/bond turmoil and U.S. shutdown risk

first published 2026-01-26T00:30:13Z

Concerns a partial US government shutdown—triggered after Senate Democrats threatened to block an appropriations package over DHS/ICE-related reforms—sent the crypto market cap from $2.97T to $2.87T in about 6.5 hours (~$100B lost). Bitcoin fell 3.4% (24h) and Ether 5.3%; over $360M in leveraged positions (mostly longs) were liquidated. Prediction markets now price ~78–80% odds of a shutdown by Jan. 31. Other macro factors cited: Trump tariff threats on Canada and US military deployments to the Middle East. Crypto Fear & Greed Index at 20 (‘Extreme Fear’).

AI Analysis

Negative market reaction is supported by concrete data in the summary: ~ $100B removed from market cap, BTC down 3.4%, ETH down 5.3%, and >$360M in leveraged positions liquidated; prediction markets show ~78–80% odds of a shutdown, making the political risk immediate.

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