BTC dropped 15% in 24 hours, with 400,000 people liquidated — but this might be the last drop.
On January 30, 2026, the temporary extension of certain appropriations for fiscal year 2026 expires at midnight on that day.
The U.S. Congress failed to complete all legislative procedures on time, leading to another government shutdown.
Meanwhile, the cryptocurrency market is experiencing a major crash in a lifeless atmosphere, as if a sudden downpour followed a gathering of clouds.
$ETH Dropped 22% $BTC Dropped 15%
According to coinglass's global liquidation information, long positions worth $2.51 billion were liquidated within 24 hours!
Short positions were liquidated for only $120 million!
More than 400,000 people have been liquidated!
Looking back at the last shutdown, the process was different this time, but the outcome was the same!
The last U.S. government shutdown started on October 1, 2025, and ended on November 12.
After a record 43-day shutdown, Congress only passed a short-term funding bill extending funding to January 30, 2026, giving both parties more time to negotiate. However, the final negotiations failed and led to another shutdown 🥲
And on the day the shutdown began: October 1, 2025,
The crypto market then started a party: BTC and ETH began to rise on October 1 after two days of bottom consolidation, and then continued to rise without looking back.
BTC rose from October 1 to October 7, from 111780 dollars to a historical high of 126199.63 dollars!!
ETH rose from 4100 to a historical high of 4755 dollars!
Other mainstream coins also have similar situations.
After reaching the highest point, BTC and ETH began a slight correction, then started to decline and consolidate until October 10. It was as if they were slowly descending the stairs. At this time, the market was still immersed in celebration and excitement.
On the night of October 10, BTC and ETH began to plummet rapidly, continuing to drop until the morning of October 11.
BTC plummeted 15%, dropping from 121000 to 102850
ETH plummeted 20%, dropping from 4315 to 3435
Total liquidation across the network in 24 hours: approximately 2 billion dollars.
Long liquidation: approximately 1.68 billion dollars (accounting for nearly 88%, dominating this liquidation, as the plunge mainly strangled long leverage). Some reports specify 1.6686 billion dollars.
Short liquidations: approximately 236-245.5 million dollars (accounting for about 12%, relatively small, as the overall market declined, and shorts profited or were not forced to liquidate).
Number of liquidations: approximately 1.6-1.64 million people.
Comparing the data, we can find:
In these two major crashes, BTC and ETH had similar declines of 15% and 20%.
And the total liquidation across the network is roughly similar: 2 billion to 2.5 billion.
There are quite a few similar places. Can we refer to the market trends after the major crash on October 11, 2025 (Event 1011) to speculate on the upcoming market?
Less than a day after Event 1011
BTC quickly repaired up 5% from 109781 to 115270.
ETH, on the other hand, quickly surged to recover 12% in about a day, rising from 3777 to 4230
This gave the trapped bulls a chance to breathe and provided a sedative to the panicked market.
So this major crash may be similar.
The subsequent market started to fluctuate near the price after the correction, and then began a long-term downward trend.
This does not seem to be a good omen.
But this time is different!
On-chain monitoring detected that in the last 36 hours, approximately several billion dollars worth of USDC and USDT were transferred into multiple exchange platforms.
These platforms are:
Coinbase Institutional
Bitfinex
Coinbase
Binance
The largest single transfer was 600 million USDC transferred to Coinbase institutional!
These may be signals of a sunny day after a long rain, a revival for the withered.
Because a massive amount of USDC and USDT left the security of institutional offline cold wallets to come to exchanges, likely for substantial purchases of cryptocurrencies!!!
Perhaps this crash is the last one, marking the end of the bear market and the beginning of the bull market.
Perhaps BTC will soon return to 120,000 dollars, and ETH will break 5,000 dollars.
The cryptocurrency market has once again rejuvenated.
