Crypto hit with $1.8B in liquidations – October repeat or healthy reset?

January is wrapping up with a reality check for 2026. After eight weeks of sideways chop, a 7% drawdown abruptly flipped sentiment, wiping billions from TOTAL market cap and snapping conditions back into risk-off.

Breaking it down, in less than 48 hours, the crypto market has shed roughly $200 billion, triggering 2026’s largest liquidation cascade so far, totaling around $1.8 billion, with 95% of liquidations coming from longs.

However, it wasn’t just the crypto market feeling the pain. The entire U.S. market got hit, with over $5 trillion wiped out across metals, crypto, and equities, in what analysts are calling a “once-in-a-decade” shakeup.

CRYPTO

Source: TradingView

According to AMBCrypto, this divergence is important. 

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