On January 19, the price dropped from $95,467 to $92,263, losing 3.3%. Following Bitcoin, leading altcoins also entered the 'red zone.'
High volatility has led to mass liquidations in the futures market. In just four hours, traders lost over $870 million, with the main blow hitting long positions.
Analysts linked the decline to concerns about a possible trade war between the U.S. and the EU. Political tension intensified pressure on investors.
Presto Research researcher Min Zhong noted the weakness of cryptocurrencies compared to traditional instruments: while stock indices are showing stability, digital assets are losing ground.
BTC Markets analyst Rachel Lucas considers geopolitics just a part of the problem. She identified regulatory uncertainty in the U.S. as the fundamental cause, which arose after the consideration of the Clarity Act on the structure of the crypto market stalled.
According to Lucas, Bitcoin is in a phase of consolidation after reaching an all-time high of $126,000 in October 2025. A breach of the 50-week moving average triggered automatic sales by algorithmic bots.
The situation was exacerbated by capital outflows from spot Bitcoin ETFs: in November and December, funds lost $4.4 billion.
With macroeconomic pressure remaining, the price could drop to the range of $67,000-74,000. However, the expert emphasized: the current correction does not resemble the prolonged 'crypto winters' of previous years, as the industry has become more mature.
Open interest
Since the beginning of the year, open interest (OI) in Bitcoin futures has increased by almost 13%. Analysts linked this to a gradual return of risk appetite.
According to CoinGlass, the indicator increased from an eight-month low of $54 billion (January 1) to $61 billion (January 19). A local maximum was recorded on January 15 at $66 billion.
CryptoQuant analyst under the nickname Darkfost noted that the market is moving towards recovery. The current dynamics contrast with the autumn correction, when amid falling prices, open interest decreased by 17.5% (from 381,000 BTC to 314,000 BTC).
Darkfost characterized the situation in the market as a 'slow recovery of risk appetite'. Strengthening this trend is capable of supporting bullish sentiments.
At the same time, the market is still in a stage of 'unloading': in dollar terms, open interest remains 33% below the October historical maximum of $92 billion. The analyst believes that such deleveraging is beneficial—it forms a bottom and creates a base for future growth.
Options have overtaken futures
Coin Bureau CEO Nick Pakrin noted an important structural shift. Last week, the volume of open positions in Bitcoin options exceeded the figures for futures.
According to Checkonchain, the total open interest in options reached $75 billion, while for futures, it amounts to $61 billion.
Pakrin believes that the Bitcoin market is becoming more mature:
large capital uses complex strategies instead of simple 'up or down' bets;
cascading liquidations are becoming less common;
the market is gradually shedding its reputation as a 'casino' and transforming into a structured financial system.
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