Massive Crypto Market Crash: $2.6 Billion in Liquidations in a Day Due to Strategy's Losses

The cryptocurrency market experienced one of its worst days in recent times. Over the past 24 hours, Bitcoin (BTC) dropped to $60,000, and Ethereum (ETH) to $1,750, leading to massive liquidations of futures positions totaling $2.6 billion. This occurred amid the release of the financial report from Strategy (formerly MicroStrategy), the largest corporate holder of Bitcoin.

According to data from analytical platforms like CoinGlass, the total liquidation amount was approximately $2.56 billion, with over $526 million from long positions. Bitcoin led the list with liquidations of $112.7 million, followed by Ethereum at $96.5 million. Overall, the crypto market lost over $2 trillion in capitalization since October 2025, and about $500 billion in the last week alone. BTC's price fell by 6.5% in a day, reaching a low of $66,675, the lowest level since October 2024, though some exchanges reported an overnight dip to $60,000 as you mentioned.

The main cause of the drop was Strategy's Q4 2025 quarterly financial report, published on February 5, 2026. The company reported an operating loss of $17.4 billion, of which $17.4 billion were unrealized losses from the fair value revaluation of digital assets (primarily Bitcoin). Net loss amounted to $12.4 billion, or $42.93 per share, compared to $670.8 million a year earlier. Strategy holds 713,502 BTC, acquired for $54.26 billion (average price of $76,052 per coin). As of January 30, 2026, the market value of these assets was $59.75 billion, but with BTC's further decline, the company has already accumulated unrealized losses exceeding $8.3-$9.5 billion.

Despite the losses, Strategy assures investors of its stability. The company has $2.3 billion in liquid assets, including $2.25 billion in USD reserves, sufficient for 2.5 years to pay dividends and debt interest. Dividends on STRC instruments (digital credits) are 11.25%, with cumulative payouts of $413 million at a blended rate of 9.6%. These distributions are considered return of capital (ROC) without taxation for the next 10 years. Strategy's shares (MSTR) fell 17% in a day, reflecting increased volatility due to its tie to BTC.

On X, users are actively discussing the situation. For example, one post notes that BTC fell below Strategy's average purchase price ($76,037), leading to $3.67-3.69 billion in unrealized losses in 2026. Another analyst emphasizes that the company faces no immediate liquidation risk thanks to debt obligations maturing in 2028–2030 and a coverage ratio of 6.5x. Another commentator points out that MSTR shares have dropped 76% since November 2024 due to BTC's fall to a 15-month low near $67,000, with $6.5 billion in unrealized losses.

Experts link the crash to broader factors: weak institutional demand, an outflow of 10,600 BTC from ETFs in 2026 (versus an inflow of 46,000 in 2025), as well as risk sentiment in markets due to volatility in tech stocks and precious metals. The U.S. Treasury Secretary stated that the government has no authority to "bail out Bitcoin," adding pressure.

This episode serves as a reminder of the risks of leverage in crypto: over 161,000 traders were liquidated in a day, with the largest order being $6 million on ETH/USDT on Binance. Analysts warn of possible further BTC decline to the low $60,000s if sentiment doesn't improve. However, Strategy continues its "HODL" strategy, achieving a 22.8% BTC Yield in 2025.

This news is based on your information about the overnight drop and Strategy's report, supplemented by independent research on market data and social media. If BTC recovers, Strategy could quickly return to profitability, but the market is currently in "risk-off" mode.