In a January 26, 2026 interview on Fox Business, Wood explained that a $28 billion deleveraging event triggered by a Binance software glitch on October 10 led to heavy selling pressure.
Wood pointed out that most of the forced selling is now lagging the market and expects Bitcoin to stabilize between $80,000 and $90,000 before the four-year bear cycle ends and the uptrend resumes.
Understanding the October Deleveraging Event
Deleveraging occurs when investors or trading platforms reduce their borrowed positions, often under stressful conditions. In October, the Binance glitch caused leveraged Bitcoin positions to automatically liquidate, leading to a large volume of sales in a short period of time. These $28 billion liquidations added extreme downward pressure on the price of Bitcoin, amplifying volatility beyond typical market swings.
A concrete example helps clarify the impact. Imagine a trader holding $1 million in Bitcoin with 3x leverage. A sudden technical glitch triggering liquidations would force the platform to sell up to $3 million worth of Bitcoin to cover the position. Multiply that by thousands of similar accounts and you get a cascading market effect. Events like this demonstrate why technical stability and risk management are essential in cryptocurrency trading, especially on platforms offering high leverage.
Cathie Wood: Bitcoin’s $28B deleveraging led to heavy losses
On January 26, 2026, speaking on Fox Business, Cathie Wood, CEO of ARK Invest, explained that Bitcoin’s recent pullback was caused by a $28 billion deleveraging event triggered by a Binance software glitch in October… pic.twitter.com/CVODMnv3D8
-Wu Blockchain (@WuBlockchain) January 27, 2026
Wood expects Bitcoin to consolidate in the $80,000-$90,000 range after deleveraging. Consolidation refers to a period in which the price moves within a relatively narrow range, allowing markets to absorb previous shocks and stabilize. Historically, Bitcoin often goes through such phases after major market events, creating conditions for renewed growth.
Learn more about Cathie Wood
Cathie Wood, CEO of ARK Invest, predicts that tokenization could become an $11 trillion market in the near future, signaling a major shift in how assets are created, traded and managed. This transformation will leverage blockchain technology to provide faster, more transparent and efficient infrastructure to financial markets.
Tokenization will represent an 11 trillion dollar market in the near future according to the CEO of @ARKInvestissement Cathie Bois.
There will be a shift to new technology based on blockchain rails and Injective is here to lead the way. pic.twitter.com/9i8EUfsyWL
— Injective 🥷 (@injective) January 27, 2026
Platforms like Injective are positioning themselves at the forefront of this change, offering the tools and protocols necessary to enable tokenized assets, decentralized exchanges, and interoperable financial systems. For investors and businesses, this represents a significant opportunity to participate in the next generation of digital finance.
Disclaimer
The information provided by Altcoin Buzz does not constitute financial advice. It is intended for educational, entertainment and informational purposes only. Any opinions or strategies shared are those of the editors/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur as a result of investments related to the information provided. Bitcoin and other cryptocurrencies are high-risk assets; therefore, perform thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
