DegenOnChain

The cryptocurrency market experienced a significant crash yesterday (January 31, 2026, into early February 1), with Bitcoin dropping sharply below $80,000 (reaching lows around $76,000–$78,000 in some reports), Ethereum and other major altcoins falling even harder (often 10%+), and total crypto market cap losing hundreds of billions in value. Liquidations exceeded $1–2 billion in a short period, amplifying the downside through forced selling.This wasn't isolated to crypto—it tied into a broader risk-off move across global markets, including sharp drops in stocks (especially tech), precious metals like gold and silver (despite prior rallies), and rising bond yields/dollar strength.Key Reasons for the CrashMultiple overlapping negative catalysts hit at once, especially amplified by thin weekend liquidity:Trump's nomination of Kevin Warsh for Federal Reserve Chair — Announced recently, Warsh is viewed as a monetary hawk who favors tighter policy, higher real rates, and less liquidity. This shifted expectations away from easy money (which crypto thrives on) toward potential tighter conditions, hurting risk assets like Bitcoin. Many analysts called this the primary trigger for the accelerated sell-off.
Geopolitical tensions — Escalating U.S.-Iran risks (threats, explosions/port incidents, potential strikes/retaliation), plus other issues like Middle East conflicts (e.g., Israel-Gaza strikes) and trade/tariff threats. These pushed investors out of speculative assets toward safety.
U.S. government/political uncertainty — Including a brief government shutdown and related fears, which added to macro caution.
Heavy ETF outflows and deleveraging — U.S. Bitcoin spot ETFs saw massive outflows (hundreds of millions to billions recently), reducing spot demand. Leveraged positions got wiped out in cascades, with thin liquidity magnifying moves.
Broader market correlation — Crypto moved in tandem with equities (tech sell-offs) and even "safe-havens" like gold got hit in the rout. Bond yields spiked, hurting anything risk-sensitive.

In short, it was a classic "risk-off" panic fueled by macro/policy fears (hawkish Fed pick + geopolitics), with crypto's leverage and weekend thin trading turning it into a violent flush. Bitcoin is now down ~30–40% from 2025 peaks, and sentiment has turned very bearish short-term, though some see it as a potential capitulation/washout phase.Markets remain volatile—watch Fed-related news, geopolitics, and ETF flows for the next moves. This is based on real-time reports as of early February 1, 2026.
$SOL and #bnb was also dropped notebaly.
#cryptocrash

Yo bro, here's the real talk on all this FUD hitting CZ & Binance rn (Jan '26):

Most of it’s straight scapegoating. That 10/10 liq cascade in Oct '25? Macro crash from Trump tariffs wiped billions everywhere—not Binance's fault. Yeah, their internal pricing for some assets like USDe went wonky during the chaos (depegged on Binance only), triggering extra liqs & ADL hits. Sucks for affected users, but it was a wild market-wide event—leverage was insane across the board. No evidence Binance manipulated; they called it a "technical ghost" and people are still salty without full context.
Bear market blues make it easy: bags down, no alt pumps, everyone blames the biggest player (CZ/Binance) instead of owning their over-leveraged plays. Classic degen move—hero in bull, villain in bear.
CZ straight-up called out the organized FUD: copy-paste attacks from sketchy accounts, likely from competitors, snubbed projects, or paid noise-makers. A ton feels coordinated, not organic.
Bottom line: It's mostly unfair hate. Binance didn't cause the crash, and CZ's been building the most liquid exchange for years. Defenders are right—take your Ls like adults and stop the witch hunt. Mega FUD, bro. You riding with CZ / Binance $BNB too? 🚀
#FUD #CZ #Binance