Bitcoin Price Dragged Down by Silver’s Domino Effect: BTC Breaks $85,000, Is a Correction Still Ahead?

Updated

February 3, 2026

Gambar Bitcoin Price Dragged Down by Silver’s Domino Effect: BTC Breaks $85,000, Is a Correction Still Ahead?

Jakarta, Pintu News – The price of Bitcoin is under pressure again after slipping to around USD 82,853 or around Rp1.39 billion. This drop coincided with a rare cross-asset liquidation event, triggered by a 35% drop in silver prices in a short period of time.

The turmoil in the commodities market spilled over into the crypto and cryptocurrency ecosystem, triggering major liquidations in various blockchain-based instruments. This has led market participants to reassess the strength of Bitcoin’s technical structure in the short term.

Silver Collapse Triggers Unusual Cross-Asset Liquidation

In the past 24 hours, crypto markets recorded an atypical liquidation hierarchy, with tokenized silver contracts leading the selling pressure. Data shows that around USD 142 million (US$2.38 trillion) worth of silver positions were liquidated, surpassing Ethereum and Bitcoin (BTC).

In total, more than 129,000 traders were liquidated with total losses approaching USD 543.9 million. These events reflect how macro assets are now increasingly connected through crypto channels.

The initial trigger came from a sharp reversal in silver prices after an earlier rally, which forced hedge funds to trim bullish positions to the lowest level in almost two years. The situation was exacerbated when CME Group raised gold and silver margin requirements to 50%, prompting leveraged traders to close positions.

The largest single liquidation was recorded on the Hyperliquid platform worth USD 18.1 million on silver contracts. This chain effect then suppressed risk sentiment and dragged Bitcoin (BTC) and Ethereum (ETH) lower.

Spot Outflows and the Breakdown of Bitcoin’s Technical Structure

Pressure on Bitcoin (BTC) comes not only from the derivatives market, but also from the spot side. Data shows spot outflows of around USD 76.41 million or IDR 1.28 trillion at the end of January, extending the distribution pattern that has been going on for the past week.

These outflows coincided with the breakdown of the uptrend line that had sustained the rally since late 2025. The combination of spot selling and derivative liquidation created a double pressure on prices.

btc price dynamics — Source: Coin Edition

Technically, Bitcoin (BTC) is now trading below all major moving averages. The 20-day EMA is around USD 88,586, the 50-day EMA is at USD 90,412, the 100-day EMA is at USD 94,046, and the 200-day EMA is at USD 97,997, all above the current price.

The Supertrend indicator is also still showing bearish signals in the USD 91,180 area. With this structure, the decline is no longer seen as a consolidation, but a continuation of the downtrend.

Short-Term Stabilization, but Downside Risk Still Dominant

On the intraday time frame, there are signs of initial stabilization after selling pressure subsided. The 30-minute chart shows the formation of a higher low since the USD 81,000 area, signaling a defensive effort from short-term buyers. The RSI indicator briefly rose to around 36, reflecting a weakening of extreme selling pressure. However, any attempt at a bounce is still stuck below the USD 84,000 area.

As long as prices are unable to reclaim key resistance levels, the market bias remains bearish. The optimistic scenario requires a daily close above USD 88,586 or approximately IDR 1.49 billion to signal that the previous trend breakout was just a false breakdown.

Conversely, if Bitcoin (BTC) closes trading below USD 81,000, the next target points to the December demand area around USD 78,000. With cross-asset liquidation still in process and spot outflows continuing, downside risks are considered greater in the near term.

Conclusion

Bitcoin’s (BTC) plunge below USD 85,000 confirms that the current crypto market is highly sensitive to macro shocks, including from commodities such as silver. Cross-asset liquidations, spot outflows, and technical structure breakdowns form a layered pressure that is difficult to ignore.

Despite signs of short-term stabilization, a sustained recovery still requires a clear shift in sentiment and fund flows. Under current conditions, market participants are likely to be more cautious while waiting for confirmation of the next direction.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

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