Glassnode Analyzes Four Key Events Behind the Recent Bitcoin Decline to $81,000

Summary:
Bitcoin's price has recently faced significant pressure, falling to the $81,000 mark, following a high of $94,000 in mid-January. Glassnode has identified four contributing factors to this decline, including long-term holder selling, changes in Bitcoin ETF flows, miner activity, and forced liquidations.

Key Takeaways

Bitcoin's price recently plunged to $81,000 after a peak of $94,000 in January.
Four main factors contributed to this crash: long-term holder distribution, Bitcoin ETF outflows, miner transfers, and forced long liquidations.
Long-term holders have been selling over 12,000 BTC daily, creating consistent sell-side pressure.
Bitcoin ETFs saw significant outflows, removing a vital source of demand.
Miner activity is resuming, with instances of increased selling.
A rise in forced liquidations has intensified the downward price movement.

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Bitcoin Price Pressure and Key Events

Glassnode has pinpointed four specific events that played a part in the latest crash of Bitcoin, which has now settled around $81,000. Bitcoin (BTC) has experienced considerable selling pressure since it hit a peak of $94,000 on January 14. Despite a brief recovery attempt on January 26, which pushed prices back above $90,000 by January 28, this upward movement was short-lived. Following this minor resurgence, Bitcoin faced yet another wave of selling pressure, plunging over 7% within two days to reach $81,040. Currently, it has made slight recoveries, hovering around $82,800.

As the market grapples with this downturn, on-chain analytics firm Glassnode delves into several factors that have amplified the bearish sentiment surrounding Bitcoin.

Long-Term Holder Distribution

In its recent findings, Glassnode highlighted the instability at the $90,000 mark even before the latest drop. The firm analyzed options data, noting that the lack of robust support at this level made Bitcoin susceptible to sudden declines when selling pressures reemerged. Among the identified factors, the activity of long-term holders emerged as a prominent one. Over the past month, long-term holders have been distributing an average of over 12,000 BTC each day, leading to approximately 370,000 BTC being sold monthly—creating continuous pressure on the market.

Bitcoin Spent Volume Glassnode Bitcoin Spent Volume | Glassnode

The accompanying data reveals that during the downturn of Q4 2025, long-term holders peaked in selling activity, transferring more than 53,000 BTC daily. However, by year-end, this aggressive selling subsided, only to re-emerge recently after a temporary decline to around 10,000 BTC daily.

ETF Outflows and Miner Transfers

The second influential factor cited by Glassnode was a significant shift in U.S. spot Bitcoin ETF flows, which recently experienced net outflows, impacting a crucial source of demand that had previously helped to cushion selling pressure. After recording a modest inflow of $6.84 million on January 26—a brief interruption of nine straight days of inflows—Bitcoin ETFs quickly transitioned into negative territory.

Bitcoin ETF Net Flows Glassnode Bitcoin ETF Net Flows | Glassnode

Since January 27, total outflows from these funds reached an astounding $984 million, including a record intraday withdrawal of $817.87 million. During this month, ETFs have cumulatively faced outflows of approximately $1.1 billion.

Additionally, renewed selling activities from miners surfaced as the third focal point of pressure. After a brief hiatus earlier this year, miners resumed transferring Bitcoin into exchanges throughout January, with net transfer volume from miners now recorded at approximately -48 BTC.

Bitcoin Net Miner Transfer Volume | Glassnode

Surge in Liquidations

The fourth element contributing to Bitcoin's price drop was a spike in forced liquidations as market prices fell. As Bitcoin's value decreased, many leveraged long positions began to unwind, which intensified the sell-off. Glassnode estimates indicate that around $300 million in long liquidations occurred as prices began to decline.

Bitcoin Total Liquidations Glassnode Bitcoin Total Liquidations | Glassnode

In the past 24 hours, total liquidations have surged to $792 million, with $752 million linked to long positions. This statistic shows that approximately 95% of all liquidations stemmed from traders speculating on higher prices. Just yesterday, total liquidations amounted to $450 million, with long positions constituting $432.96 million, representing an overwhelming 96% of the total liquidations.

Disclaimer: This article serves informational purposes only and should not be taken as financial advice. The opinions expressed represent the author's views and do not necessarily reflect those of The Crypto Basic. Readers should conduct their own thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.