Based on the market performance in the early hours of January 30th, the cryptocurrency market experienced a broad and significant decline. Below is a summary of key market data and dynamics:

📉 Mainstream Coin Market (As of the morning of January 30th)

· Bitcoin (BTC): Price fell below $85,000, with the lowest point reaching $83,338, a drop of over 5% in 24 hours.
· Ethereum (ETH): Declined by over 6%, with a peak drop of more than 8%.
· Other major altcoins: Generally followed the decline, such as SOL, Dogecoin (DOGE), Cardano (ADA), with 24-hour drops mostly between 6% and 8%.

💥 Market Chain Reaction

· Leverage Liquidation: The sharp decline caused widespread liquidation of high-leverage positions. Over the past 24 hours, more than 220,000 investors worldwide were liquidated, with total liquidation amounting to approximately $1 billion (roughly 7 billion RMB).
· Related Assets Under Pressure: US stock market crypto concept stocks declined simultaneously, with significant drops in Coinbase, MicroStrategy (MSTR), and other companies.

🔍 Analysis of Main Causes for Market Decline

This broad sell-off is the result of multiple pressures acting together:

1. Risk Asset Attributes Highlighted, Acting as a “Leverage Amplifier”
· Recently, global tech stocks have been under pressure, and risk aversion has increased. Cryptocurrencies are viewed as highly volatile risk assets, and their decline has amplified overall market sell-offs.
· Over-leveraged long positions were forcibly liquidated during the decline, creating a negative cycle of “decline → liquidation → sell-off → further decline.”
2. Tightening Global Liquidity Expectations
· Reversal trends appeared in traditional financial markets’ yen carry trades (investors selling high-yield assets and buying yen to repay loans), often indicating tightening global financial liquidity.
· Cryptocurrencies, being highly dependent on liquidity, came under pressure during liquidity tightening.
3. Capital Flows to Traditional Safe-Haven Assets
· Amid rising geopolitical uncertainties (such as tensions in the Middle East), funds accelerated their flow from cryptocurrencies to traditional safe-haven assets like gold.
· For example, the world’s largest stablecoin issuer Tether announced plans to allocate part of its investment portfolio to physical gold, intensifying market concerns over capital outflows.
4. The “Digital Gold” Narrative Temporarily Fails
· Recently, gold prices hit new highs repeatedly, while Bitcoin failed to rise in tandem, showing weakness. This has raised doubts about its role as “digital gold” or an inflation hedge.
· Some institutions pointed out that Bitcoin’s current price is more driven by liquidity and risk appetite, and its safe-haven connection to geopolitical risks is not solid.

📊 Market Outlook and Key Observations

Based on various sources of information, the market may remain highly volatile in the short term.

· Key Support Level: The market is closely watching whether $80,000 can become a critical support level for Bitcoin.
· Macro Policy Intensive Period: The market is in a window of macro events, including Federal Reserve policies, US tech earnings reports, and the risk of US government shutdowns, which could continue to influence risk appetite.
· Capital Flows: Whether funds will flow back from assets like gold into cryptocurrencies is a key point to watch in the future.

If you want to gain a deeper understanding of the performance of a specific coin or a particular influencing factor (such as the specific impact of Federal Reserve policies), I can provide you with more detailed analysis.