As for internal market factors, short-term traders concentrated their buying amid several overlapping buying catalysts, and the momentum market essentially imploded under its own weight. Similar to the sharp surge leading up to October 20, 2025, followed by a steep decline, this can be described as a “surface avalanche” where heavy snowfall (a surge in futures market longs) occurred, only to collapse abruptly. However, the scale this time is larger than before. Precisely because of this, the upcoming adjustment phase is likely to be prolonged.
On the other hand, the underlying factors (buying catalysts) that have steadily raised levels over multiple years, akin to a “base layer of snow,” remain intact. In other words, this sharp decline might not be a trend reversal including a peak.
Precious metals like gold and silver plunged sharply at the start of the week. This has also put downward pressure on crude oil and stock markets. While gold and silver are considered safe-haven assets, their recent rapid rise had taken on speculative characteristics. This speculative behavior was likely triggered by last weekend's reports of President Trump's nomination of Mr. Warsh as the next Federal Reserve Chair. This news heightened concerns about a stronger dollar and a more hawkish stance from the Fed, prompting a sharp correction.
Market eyes are on U.S.-driven factors like Fed appointments and the stopgap budget. Regarding the next Fed chair, President Trump has announced his nomination of Mr. Warsh. Initially, Mr. Warsh's hawkish stance during his time as a Fed governor had fueled dollar buying.
However, opposing concern still remains about how markets will interpret the fact that he was nominated by President Trump, who favors rate cuts and a weaker dollar.
Furthermore, the nomination still requires confirmation by the U.S. Congress, necessitating a closer look at Mr. Wash's views on monetary policy. Regarding the stopgap budget, it awaits a vote in the House of Representatives. Depending on the timing, there is also the possibility that the U.S. employment statistics release scheduled for this weekend could be delayed. The situation does not yet appear to be conducive to spreading a sense of reassurance in the market.
$BTC is trading around 74600. Bearish sentiment lingers.
The sharp decline in the $BTC market was a classic example where a chain of forced liquidations drove prices down more than the news itself. Multiple waves of liquidations occurred within a short timeframe, causing prices to break through illiquid price levels in one fell swoop, pushing Bitcoin below $79,000.
Approximately $1.3 billion in liquidations were confirmed over the past 12 hours. This was not the result of a sudden surge in investors wanting to sell. It was the result of leverage being forcibly unwound. Liquidation is the mechanism where, in leveraged trading, when margin falls below the maintenance level, the exchange forcibly closes positions regardless of the investor's intent. The problem lies in how liquidations generate market orders, further accelerating price declines. Once started, liquidations trigger subsequent ones, spreading in a chain reaction.
$BTC is now trading within a range of around 80568 to 97612.
30 Jan NY Market Overview
The dollar strengthened in New York trading. Reports of a tentative agreement between President Trump and Senate Democrats on a stopgap budget, alongside the upcoming appointment of the next Federal Reserve chair, contributed to the dollar's rise. The dollar rose against the yen, reaching as high as ¥154.76 in the morning. After that, it saw some corrective selling and traded in the ¥154.10 range. However, the dollar strengthened again heading into the evening, climbing to ¥154.79 and ending the week's trading near its high.
In the Tokyo morning session, the USD/JPY rose to around 153.98 yen, driven by broad dollar buying against major currencies. The primary factors behind this move include: Government Shutdown Averted: Reports that U.S. President Trump and Democrats reached a tentative agreement to avoid a government shutdown. Next Fed Chair Speculation: Growing expectations that former Fed Governor Kevin Warsh will be nominated as the next Chair of the Federal Reserve. Among the potential candidates, Warsh is viewed as being on the hawkish side, suggesting a preference for tighter monetary policy.
CMC20 index is tumbling to around 170 indicating bearish momentum in the crypto market.
CMC20 index DTF: A benchmark designed to measure the performance of the top 20 cryptocurrency projects by market capitalization, as ranked by CoinMarketCap.