The capacity degradation of bucket foundation in liquefied sand layer under cyclic loads such as equivalent dynamic ice-induced loads is studied. A simplified numerical model of liquefied sand layer has been presented based on the dynamic centrifuge experiment results. The ice-induced dynamic loads are modeled as equivalent sine cyclic loads, the liquefaction degree in different position of sand layer and effects of main factors are investigated. Subsequently, the sand resistance is represented by uncoupled, non-linear sand springs which describe the sub-failure behavior of the local sand resistance as well as the peak capacity of bucket foundation under some failure criterion. The capacity of bucket foundation is determined in liquefied sand layer and the rule of capacity degradation is analyzed. The capacity degradation in liquefied sand layer is analyzed comparing with that in non-liquefied sand layer. The results show that the liquefaction degree is 0.9 at the top and is only 0.06 at the bottom of liquefied sand layer. The numerical results are agreement well with the centrifugal experimental results. The value of the degradation of bucket capacity is 12% in numerical simulating whereas it is 17% in centrifugal experiments.