BTC Dragged Down by Macro: Fed Issues Make Crypto Sluggish
Bitcoin "slipped" again on Friday (January 30th), falling to $81,169 before rebounding to around $83,728—bringing intraday volatility above 4% and pushing the crypto market into risk-off mode.
The primary trigger was a combination of leveraged position liquidations and changing expectations for US monetary policy. Reports indicate that approximately US$1.68 billion in crypto positions were liquidated in 24 hours, mostly long positions, with hundreds of thousands of traders "forced out" as margin calls were hit.
On the macro front, the market also responded to Donald Trump's official nomination of Kevin Warsh to replace Jerome Powell as Chairman of the Federal Reserve. Warsh is seen as relatively "hawkish" on several issues (especially the Fed balance sheet), leading the market to perceive the risk of tighter liquidity—and riskier assets like crypto are also affected.
The pressure doesn't stop with Bitcoin. Ethereum fell to around $2,685, XRP to $1.74, Cardano to $0.323, while Dogecoin was at $0.1159. Solana remained relatively stable at around $117 after some intraday fluctuations.
In conclusion, when the "Fed could tighten" narrative emerges along with a wave of liquidations, the crypto market usually reacts quickly—because high leverage can make even small price movements turn into major sell-offs.
Source: Newsmaker.id
