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Black Tuesday: Billions in US stocks and cryptocurrencies wipe out
Anndy Lian
Black Tuesday: Billions in US stocks and cryptocurrencies wipe out
The sudden collapse of US equity markets on Tuesday, January 20, 2026, represents a dramatic shift in investor sentiment as geopolitical friction takes centre stage. This selloff, the most severe since October, stems directly from a sudden escalation in international trade tensions. Investors spent the long Martin Luther King Jr. Day weekend processing President Trump’s threat to impose aggressive tariffs on eight European nations.
These penalties are a response to countries opposing his renewed efforts to acquire Greenland. The Nasdaq Composite bore the brunt of this anxiety, leading a broader market retreat that spared few sectors. This volatility reflects a deep-seated fear that new trade barriers will disrupt global commerce and erode the profitability of major multinational corporations.
The fallout hit the technology sector particularly hard. Every member of the Magnificent Seven saw significant losses as the market re-evaluated the stability of global supply chains. As uncertainty spread, capital fled toward traditional safe havens. Both gold and silver reached new record highs, with gold specifically surging 4.7 per cent to hit the US$4,800 mark. This movement highlights a distinct lack of confidence in the US dollar under the current geopolitical climate.
Simultaneously, the bond market faced immense pressure. Long-term US Treasury yields climbed to a four-month peak, driven in part by a massive rout in Japanese bonds, where yields reached all-time highs. This global synchronisation of rising yields suggests a widespread re-pricing of risk across all major asset classes.
The cryptocurrency market did not escape this risk-off environment, plummeting 4.09 per cent over 24 hours and extending a painful 7.5 per cent weekly loss. While some proponents view digital assets as a form of electronic gold, the current data proves otherwise. Bitcoin maintained a strong positive correlation of 0.73 with the Nasdaq-100, while its inverse correlation with gold stood at -0.95.
This confirms that in moments of acute stress, the market treats digital assets as high-risk speculative plays rather than stable stores of value. The breakdown of Ethereum below the critical US$3,000 support level further accelerated the decline, dragging the broader altcoin market down as institutional and retail confidence wavered.
Internal market mechanics exacerbated the crypto price collapse through a massive leveraged long squeeze. Bitcoin liquidations reached US$199 million within a single day, a staggering 1,581 per cent increase from the previous period. This represents the largest single-day flush the market has seen since October 2025.
In the hours leading up to the crash, perpetual open interest rose by 7.23 per cent as traders placed overleveraged bets on Bitcoin reaching US$95,000. When prices fell below US$90,000, these positions triggered a cascade of forced liquidations. This technical breakdown created a classic bull trap, where positive funding rates lured in buyers just before the volatility forced them out of their positions.
Looking ahead, the path to recovery for both stocks and digital assets appears difficult. The crypto Fear and Greed Index currently sits at 32, indicating a state of market capitulation. For a floor to form, Bitcoin must hold its support at US$84,000 while institutional buyers absorb the ongoing sell-side pressure.
Market participants are now shifting their focus toward the upcoming US fourth-quarter GDP data scheduled for release on January 25. If those figures show economic weakness, the pressure on risk assets will likely intensify. For now, the combination of aggressive tariff rhetoric, a deleveraging of speculative positions, and broken technical levels suggests that the era of easy gains has met a significant roadblock.
Source: https://e27.co/black-tuesday-billions-in-us-stocks-and-cryptocurrencies-wipe-out-20260121/
The post Black Tuesday: Billions in US stocks and cryptocurrencies wipe out appeared first on Anndy Lian by Anndy Lian.
Black Tuesday: Billions in US stocks and cryptocurrencies wipe out
The sudden collapse of US equity markets on Tuesday, January 20, 2026, represents a dramatic shift in investor sentiment as geopolitical friction takes centre stage. This selloff, the most severe since October, stems directly from a sudden escalation in international trade tensions. Investors spent the long Martin Luther King Jr. Day weekend processing President Trump’s threat to impose aggressive tariffs on eight European nations.
These penalties are a response to countries opposing his renewed efforts to acquire Greenland. The Nasdaq Composite bore the brunt of this anxiety, leading a broader market retreat that spared few sectors. This volatility reflects a deep-seated fear that new trade barriers will disrupt global commerce and erode the profitability of major multinational corporations.
The fallout hit the technology sector particularly hard. Every member of the Magnificent Seven saw significant losses as the market re-evaluated the stability of global supply chains. As uncertainty spread, capital fled toward traditional safe havens. Both gold and silver reached new record highs, with gold specifically surging 4.7 per cent to hit the US$4,800 mark. This movement highlights a distinct lack of confidence in the US dollar under the current geopolitical climate.
Simultaneously, the bond market faced immense pressure. Long-term US Treasury yields climbed to a four-month peak, driven in part by a massive rout in Japanese bonds, where yields reached all-time highs. This global synchronisation of rising yields suggests a widespread re-pricing of risk across all major asset classes.
The cryptocurrency market did not escape this risk-off environment, plummeting 4.09 per cent over 24 hours and extending a painful 7.5 per cent weekly loss. While some proponents view digital assets as a form of electronic gold, the current data proves otherwise. Bitcoin maintained a strong positive correlation of 0.73 with the Nasdaq-100, while its inverse correlation with gold stood at -0.95.
This confirms that in moments of acute stress, the market treats digital assets as high-risk speculative plays rather than stable stores of value. The breakdown of Ethereum below the critical US$3,000 support level further accelerated the decline, dragging the broader altcoin market down as institutional and retail confidence wavered.
Internal market mechanics exacerbated the crypto price collapse through a massive leveraged long squeeze. Bitcoin liquidations reached US$199 million within a single day, a staggering 1,581 per cent increase from the previous period. This represents the largest single-day flush the market has seen since October 2025.
In the hours leading up to the crash, perpetual open interest rose by 7.23 per cent as traders placed overleveraged bets on Bitcoin reaching US$95,000. When prices fell below US$90,000, these positions triggered a cascade of forced liquidations. This technical breakdown created a classic bull trap, where positive funding rates lured in buyers just before the volatility forced them out of their positions.
Looking ahead, the path to recovery for both stocks and digital assets appears difficult. The crypto Fear and Greed Index currently sits at 32, indicating a state of market capitulation. For a floor to form, Bitcoin must hold its support at US$84,000 while institutional buyers absorb the ongoing sell-side pressure.
Market participants are now shifting their focus toward the upcoming US fourth-quarter GDP data scheduled for release on January 25. If those figures show economic weakness, the pressure on risk assets will likely intensify. For now, the combination of aggressive tariff rhetoric, a deleveraging of speculative positions, and broken technical levels suggests that the era of easy gains has met a significant roadblock.
Source: https://e27.co/black-tuesday-billions-in-us-stocks-and-cryptocurrencies-wipe-out-20260121/
The post Black Tuesday: Billions in US stocks and cryptocurrencies wipe out appeared first on Anndy Lian by Anndy Lian.
Reports that the Trump family's fortune is increasingly tied to crypto, with President Trump's new CFTC chief championing crypto initiatives, indicates a significant shift in political and financial landscapes. This mainstream political adoption adds a layer of complexity and potential volatility to the market as it becomes entwined with political agendas. It shows a growing acceptance of crypto at the highest levels of power.
Why Your USDT Is A Tool, Not An Interest-Bearing Bond
Anndy Lian
Why Your USDT Is A Tool, Not An Interest-Bearing Bond
The digital asset market is often clouded by a fundamental misunderstanding of the products we use daily. Recently, during a discussion on an X Space hosted by members of a Chinese crypto community, a guest speaker passionately argued that Tether (CRYPTO: USDT) holders are entitled to a share of the interest generated by Tether Limited’s massive reserves. This sentiment is growing, fueled by a desire for passive income in a volatile market. However, this perspective represents a dangerous conflation of financial concepts. We must be clear: 1 USDT is equivalent to $1 USD in terms of purchasing power within the ecosystem, but it is fundamentally not the same as holding a US dollar in a savings account or a Treasury Bill. To demand a direct share of Tether’s corporate interest is to fundamentally misunderstand the architecture of stablecoins and the laws that govern them.
When you exchange your fiat currency for USDT, you are not making a deposit into a bank; you are purchasing a product. Tether Limited operates as a private entity that issues a digital token backed by a basket of assets. The primary value proposition of USDT is liquidity and stability, the ability to move value across borders and between exchanges at the speed of the blockchain. Forgoing your fiat in exchange for USDT is a voluntary trade-off. You give up the sovereign protections and the interest-bearing potential of the traditional banking system in exchange for the utility of a digital asset. To expect the issuer to then hand back its corporate profits is akin to asking a privately owned bank to distribute its quarterly earnings directly to every person holding its banknotes. It is a logical fallacy that ignores the operational costs and risks assumed by the issuer.
The data regarding Tether’s revenue generation is transparent, yet often misinterpreted. As of 2026, Tether continues to manage one of the world’s largest reserve portfolios. The majority of these reserves, roughly 74% to 77%, are held in U.S. Treasury Bills. The remaining assets are diversified across Reverse Repurchase Agreements (11-12%), secured loans (8%), and strategic holdings in precious metals and Bitcoin (12-14%). Tether has become one of the largest global holders of U.S. debt. The interest generated from these trillions of dollars in T-bills belongs to Tether Limited. This income covers their operational expenses, legal defense funds, and provides the capital necessary to maintain the 1:1 peg even during market de-pegging events. This profit is the reward for the company’s management of risk and liquidity; it is not a communal pot for token holders.
Furthermore, we must address the “No Native Staking” reality. Unlike Ethereum or Solana, USDT is not a native token of a proof-of-stake blockchain. It is an asset issued on top of other networks like Tron, Ethereum, and TON. Because USDT does not secure the underlying network through a consensus mechanism, there is no technical “work” being done by a holder simply by letting the tokens sit in a wallet. Without providing a service to the network, such as validating transactions or providing liquidity, there is no logical or technical basis for a “reward.” The concept of “staking” USDT is a misnomer; what people are actually doing is lending, which is a different financial activity entirely.
This leads us to the critical role of CeFi and DeFi intermediaries. If a holder wants to earn interest on their USDT, they must enter the arena of “risk”. Platforms like Binance Earn or decentralized protocols like Aave allow users to generate yield. However, this yield does not come from Tether’s T-bills. It comes from other market participants who are willing to pay a premium to borrow your USDT for leverage or liquidity. In this scenario, the middleman, whether it is a centralized exchange (CEX) or a smart contract, takes a cut for facilitating the match. This is a “fair logic” ecosystem. You are compensated for the counterparty risk you assume. While U.S. Treasury Bills are considered “risk-free” as long as the U.S. government stands, lending USDT on a platform carries the risk of platform insolvency or smart contract failure. You cannot have the “risk-free” rate of a T-bill without actually owning the T-bill.
Looking toward the horizon of 2026, the regulatory landscape is finally catching up to these nuances. The latest draft of the Digital Asset Market Clarity Act provides a definitive answer to the guest speaker’s demands. The Act explicitly states that platforms cannot pay yield simply for “parking” stablecoins. This is a move to prevent stablecoins from being classified as unregistered securities. According to the draft, rewards are only permissible when a user is “active”, meaning they must be providing liquidity or contributing to the operation of a network. This reinforces the journalist’s point: the law itself is being written to prevent the very “mix-up in concept” that the Chinese group was advocating for. If Tether were to pay interest directly to holders, USDT would legally transform into a security, subjecting it to a level of regulation that would likely destroy its utility as a global medium of exchange.
However, the future does hold a potential evolution for Tether. As Tether moves toward launching and scaling its own proprietary blockchain, the distribution of rewards could change legitimately. On its own chain, Tether could implement a system where rewards are distributed to those who help secure the network or facilitate its decentralized operations. In this context, the “interest” is rebranded and restructured as a “network reward.” This is not a payout of T-bill interest; it is compensation for the utility provided to the new ecosystem. Until that fruition, demanding interest for simply holding the token remains a fundamental misunderstanding of the difference between an asset and an investment contract.
The psychological drive behind the speaker’s demand is understandable; everyone wants a piece of the massive profits Tether is generating. But in the world of high-level finance and digital assets, desire does not dictate structure. If you want the interest from U.S. Treasuries, the path is simple: hold USD and buy the Treasuries. If you want the flexibility of the world’s most liquid stablecoin, you hold USDT and accept that the “cost” of that flexibility is the interest you forgo. You cannot trade your fiat for a tool and then demand the tool act like a bank account.
Ultimately, the distinction between 1 USDT and $1 USD is one of “ownership of yield.” When you hold $1 USD in a sophisticated financial setup, you own the potential yield of that dollar. When you hold 1 USDT, you own a digital certificate of value that Tether Limited promises to redeem for $1 USD. The yield generated by the backing of that certificate belongs to the issuer who maintains the system. This is the bedrock of the stablecoin economy. To twist this concept is to invite regulatory crackdowns and economic instability. And to mislead your followers with the wrong concept is also causing instability. Communities must be equipped with the right knowledge, learn from the best and not from the loudest.
As we navigate the complexities of 2026 and beyond, we must remain disciplined in our definitions: USDT is for movement and utility; USD is for savings and interest. Mixing the two serves only to create a “yield mirage” that the law and common sense will eventually evaporate.
Source: https://www.benzinga.com/Opinion/26/01/50010512/why-your-usdt-is-a-tool-not-an-interest-bearing-bond
The post Why Your USDT Is A Tool, Not An Interest-Bearing Bond appeared first on Anndy Lian by Anndy Lian.
Why Your USDT Is A Tool, Not An Interest-Bearing Bond
The digital asset market is often clouded by a fundamental misunderstanding of the products we use daily. Recently, during a discussion on an X Space hosted by members of a Chinese crypto community, a guest speaker passionately argued that Tether (CRYPTO: USDT) holders are entitled to a share of the interest generated by Tether Limited’s massive reserves. This sentiment is growing, fueled by a desire for passive income in a volatile market. However, this perspective represents a dangerous conflation of financial concepts. We must be clear: 1 USDT is equivalent to $1 USD in terms of purchasing power within the ecosystem, but it is fundamentally not the same as holding a US dollar in a savings account or a Treasury Bill. To demand a direct share of Tether’s corporate interest is to fundamentally misunderstand the architecture of stablecoins and the laws that govern them.
When you exchange your fiat currency for USDT, you are not making a deposit into a bank; you are purchasing a product. Tether Limited operates as a private entity that issues a digital token backed by a basket of assets. The primary value proposition of USDT is liquidity and stability, the ability to move value across borders and between exchanges at the speed of the blockchain. Forgoing your fiat in exchange for USDT is a voluntary trade-off. You give up the sovereign protections and the interest-bearing potential of the traditional banking system in exchange for the utility of a digital asset. To expect the issuer to then hand back its corporate profits is akin to asking a privately owned bank to distribute its quarterly earnings directly to every person holding its banknotes. It is a logical fallacy that ignores the operational costs and risks assumed by the issuer.
The data regarding Tether’s revenue generation is transparent, yet often misinterpreted. As of 2026, Tether continues to manage one of the world’s largest reserve portfolios. The majority of these reserves, roughly 74% to 77%, are held in U.S. Treasury Bills. The remaining assets are diversified across Reverse Repurchase Agreements (11-12%), secured loans (8%), and strategic holdings in precious metals and Bitcoin (12-14%). Tether has become one of the largest global holders of U.S. debt. The interest generated from these trillions of dollars in T-bills belongs to Tether Limited. This income covers their operational expenses, legal defense funds, and provides the capital necessary to maintain the 1:1 peg even during market de-pegging events. This profit is the reward for the company’s management of risk and liquidity; it is not a communal pot for token holders.
Furthermore, we must address the “No Native Staking” reality. Unlike Ethereum or Solana, USDT is not a native token of a proof-of-stake blockchain. It is an asset issued on top of other networks like Tron, Ethereum, and TON. Because USDT does not secure the underlying network through a consensus mechanism, there is no technical “work” being done by a holder simply by letting the tokens sit in a wallet. Without providing a service to the network, such as validating transactions or providing liquidity, there is no logical or technical basis for a “reward.” The concept of “staking” USDT is a misnomer; what people are actually doing is lending, which is a different financial activity entirely.
This leads us to the critical role of CeFi and DeFi intermediaries. If a holder wants to earn interest on their USDT, they must enter the arena of “risk”. Platforms like Binance Earn or decentralized protocols like Aave allow users to generate yield. However, this yield does not come from Tether’s T-bills. It comes from other market participants who are willing to pay a premium to borrow your USDT for leverage or liquidity. In this scenario, the middleman, whether it is a centralized exchange (CEX) or a smart contract, takes a cut for facilitating the match. This is a “fair logic” ecosystem. You are compensated for the counterparty risk you assume. While U.S. Treasury Bills are considered “risk-free” as long as the U.S. government stands, lending USDT on a platform carries the risk of platform insolvency or smart contract failure. You cannot have the “risk-free” rate of a T-bill without actually owning the T-bill.
Looking toward the horizon of 2026, the regulatory landscape is finally catching up to these nuances. The latest draft of the Digital Asset Market Clarity Act provides a definitive answer to the guest speaker’s demands. The Act explicitly states that platforms cannot pay yield simply for “parking” stablecoins. This is a move to prevent stablecoins from being classified as unregistered securities. According to the draft, rewards are only permissible when a user is “active”, meaning they must be providing liquidity or contributing to the operation of a network. This reinforces the journalist’s point: the law itself is being written to prevent the very “mix-up in concept” that the Chinese group was advocating for. If Tether were to pay interest directly to holders, USDT would legally transform into a security, subjecting it to a level of regulation that would likely destroy its utility as a global medium of exchange.
However, the future does hold a potential evolution for Tether. As Tether moves toward launching and scaling its own proprietary blockchain, the distribution of rewards could change legitimately. On its own chain, Tether could implement a system where rewards are distributed to those who help secure the network or facilitate its decentralized operations. In this context, the “interest” is rebranded and restructured as a “network reward.” This is not a payout of T-bill interest; it is compensation for the utility provided to the new ecosystem. Until that fruition, demanding interest for simply holding the token remains a fundamental misunderstanding of the difference between an asset and an investment contract.
The psychological drive behind the speaker’s demand is understandable; everyone wants a piece of the massive profits Tether is generating. But in the world of high-level finance and digital assets, desire does not dictate structure. If you want the interest from U.S. Treasuries, the path is simple: hold USD and buy the Treasuries. If you want the flexibility of the world’s most liquid stablecoin, you hold USDT and accept that the “cost” of that flexibility is the interest you forgo. You cannot trade your fiat for a tool and then demand the tool act like a bank account.
Ultimately, the distinction between 1 USDT and $1 USD is one of “ownership of yield.” When you hold $1 USD in a sophisticated financial setup, you own the potential yield of that dollar. When you hold 1 USDT, you own a digital certificate of value that Tether Limited promises to redeem for $1 USD. The yield generated by the backing of that certificate belongs to the issuer who maintains the system. This is the bedrock of the stablecoin economy. To twist this concept is to invite regulatory crackdowns and economic instability. And to mislead your followers with the wrong concept is also causing instability. Communities must be equipped with the right knowledge, learn from the best and not from the loudest.
As we navigate the complexities of 2026 and beyond, we must remain disciplined in our definitions: USDT is for movement and utility; USD is for savings and interest. Mixing the two serves only to create a “yield mirage” that the law and common sense will eventually evaporate.
Source: https://www.benzinga.com/Opinion/26/01/50010512/why-your-usdt-is-a-tool-not-an-interest-bearing-bond
The post Why Your USDT Is A Tool, Not An Interest-Bearing Bond appeared first on Anndy Lian by Anndy Lian.
The partnership between Delaware Life and BlackRock to bring Bitcoin exposure to fixed indexed annuities is a transformative step for integrating crypto into mainstream retirement products. This provides a regulated and accessible way for a new demographic of traditional investors to gain exposure to digital assets, bridging the gap between legacy finance and crypto. The product's risk-managed index that blends S&P 500 and Bitcoin is an innovative approach to managing volatility.
The CFTC's self-identified risk of staffing shortages in its 2026 report is concerning, especially as its regulatory mandate for crypto assets like Bitcoin and Ethereum is expanding. An under-resourced regulator may struggle to provide the necessary oversight and enforcement, leading to continued market manipulation and consumer risk. This highlights a critical gap in US regulatory preparedness and a potential roadblock to a clear, functional framework for the industry.
Spot Gold Surges to Record Highs Above $4,800 Per Ounce
The surge in spot gold prices to record highs demonstrates its role as the prevailing safe haven asset amid the current geopolitical and economic uncertainty. This contrasts with Bitcoin's performance, challenging the "digital gold" narrative in the short term. The strong performance of precious metals highlights investor preference for physical assets during periods of extreme market stress, suggesting that the crypto market has some way to go before it is fully considered a traditional hedge.
The surge in spot gold prices to record highs demonstrates its role as the prevailing safe haven asset amid the current geopolitical and economic uncertainty. This contrasts with Bitcoin's performance, challenging the "digital gold" narrative in the short term. The strong performance of precious metals highlights investor preference for physical assets during periods of extreme market stress, suggesting that the crypto market has some way to go before it is fully considered a traditional hedge.
Bitcoin Dips Back Below $90,000 as Global Selloff Deepens
Bitcoin's slide below $90,000 is a direct result of broad "risk-off" sentiment in global markets, driven by renewed US tariff threats and bond market volatility. This demonstrates that in times of macro uncertainty, investors still view crypto as a risk asset, moving capital into traditional safe havens like gold. This short-term weakness, with over $1 billion in liquidations, erases all of its 2026 gains, highlighting significant volatility and vulnerability to external market shocks.
Bitcoin's slide below $90,000 is a direct result of broad "risk-off" sentiment in global markets, driven by renewed US tariff threats and bond market volatility. This demonstrates that in times of macro uncertainty, investors still view crypto as a risk asset, moving capital into traditional safe havens like gold. This short-term weakness, with over $1 billion in liquidations, erases all of its 2026 gains, highlighting significant volatility and vulnerability to external market shocks.
Bitcoin pulls back to US$92,500 as market sentiment turns cautious
Anndy Lian
Bitcoin pulls back to US$92,500 as market sentiment turns cautious
Trade tensions stemming from President Donald Trump’s recent tariff threats regarding Greenland created immediate volatility across multiple asset classes. While American investors observed a public holiday on Monday, January 19, the underlying pressure became evident in overnight trading. As cash markets prepared to open on Tuesday, January 20, 2026, the ripple effects of these geopolitical developments moved through international exchanges and into the digital asset space.
US stock futures signalled a difficult start for the trading week. Futures for the S&P 500 dropped 1.1 per cent, and Nasdaq 100 futures mirrored that decline with an identical 1.1 per cent slide. The Dow Jones Industrial Average futures showed slightly more resilience but still fell 0.8 per cent in pre-market activity. This downward momentum followed a significant retreat in Europe, where the Stoxx Europe 600 suffered its largest one-day loss since November. Trade-sensitive sectors like the automotive industry bore the brunt of the selling pressure, leading to a 1 per cent decline in the broad European index.
Asian markets responded to the global unease with localised sell-offs during Tuesday’s session. Both Japan’s Topix and Australia’s S&P/ASX 200 fell by 0.7 per cent. In contrast, markets in Greater China showed greater stability, with the Hang Seng Index in Hong Kong and the Shanghai Composite remaining little changed. This regional divergence suggests that while the tariff threats weigh heavily on traditional manufacturing and export hubs, some pockets of the market are attempting to find a floor despite the broader geopolitical noise.
The fixed income and currency markets reflected a classic move toward safety. When cash trading resumed, the yield on the benchmark US 10-year bond climbed three basis points to 4.26 per cent. Investors simultaneously pushed the US dollar higher against most major global currencies. Traditional havens like the Swiss franc and gold attracted significant interest. Although spot gold retreated slightly from its peak after closing at a record high on Monday, it remains near historic levels. In the energy sector, West Texas Intermediate crude oil moved against the grain of falling equities, rising to US$59.69 per barrel.
In the cryptocurrency sector, the mood reflects the same hesitation seen in traditional finance. Bitcoin and other digital assets declined, with Bitcoin trading near US$92,500. The CMC Fear and Greed Index currently sits at 42 out of 100, indicating neutral market sentiment. This represents a three-point drop within the last 24 hours. While the index has recovered from the extreme fear level of 27 recorded in December, the recent slide from 45 yesterday suggests that traders are growing increasingly wary of the current price action.
Social sentiment currently leans toward the bearish side of the spectrum. The social sentiment algorithm indicates a score of 4.85 out of 10, placing it just below the neutral threshold. Conversations among market participants are divided between reports of whale accumulation and concerns over regulatory actions, such as the delisting of specific assets like MYRO. This negative tilt in social discourse, combined with a 4.17 per cent drop in open interest to US$626.4 billion, shows that leverage is leaving the system.
Despite the prevailing gloom, technical indicators offer a more nuanced perspective. The RSI7 for the total crypto market cap has reached an oversold level of 18.82. Historically, such low readings suggest that the market might be due for a short-term relief rally. Furthermore, liquidations in Bitcoin markets fell by 94.79 per cent to US$6.46 million, suggesting that the most aggressive forced selling may have subsided for now. These technical signals create a neutral outlook where the risks of further deleveraging face off against the potential for a technical bounce.
The intersection of political threats and technical market conditions defines the current landscape. With Bitcoin dominance holding at 59.07 per cent, capital appears to be rotating into the largest digital asset as a potential hedge against broader market instability. The combination of cautious derivatives activity, mixed social signals, and renewed trade friction suggests that investors should remain prepared for continued uncertainty. While the markets are not yet in a state of panic, the shift from greed toward a more defensive posture is unmistakable.
Source: https://e27.co/bitcoin-pulls-back-to-us92500-as-market-sentiment-turns-cautious-20260120/
The post Bitcoin pulls back to US$92,500 as market sentiment turns cautious appeared first on Anndy Lian by Anndy Lian.
Bitcoin pulls back to US$92,500 as market sentiment turns cautious
Trade tensions stemming from President Donald Trump’s recent tariff threats regarding Greenland created immediate volatility across multiple asset classes. While American investors observed a public holiday on Monday, January 19, the underlying pressure became evident in overnight trading. As cash markets prepared to open on Tuesday, January 20, 2026, the ripple effects of these geopolitical developments moved through international exchanges and into the digital asset space.
US stock futures signalled a difficult start for the trading week. Futures for the S&P 500 dropped 1.1 per cent, and Nasdaq 100 futures mirrored that decline with an identical 1.1 per cent slide. The Dow Jones Industrial Average futures showed slightly more resilience but still fell 0.8 per cent in pre-market activity. This downward momentum followed a significant retreat in Europe, where the Stoxx Europe 600 suffered its largest one-day loss since November. Trade-sensitive sectors like the automotive industry bore the brunt of the selling pressure, leading to a 1 per cent decline in the broad European index.
Asian markets responded to the global unease with localised sell-offs during Tuesday’s session. Both Japan’s Topix and Australia’s S&P/ASX 200 fell by 0.7 per cent. In contrast, markets in Greater China showed greater stability, with the Hang Seng Index in Hong Kong and the Shanghai Composite remaining little changed. This regional divergence suggests that while the tariff threats weigh heavily on traditional manufacturing and export hubs, some pockets of the market are attempting to find a floor despite the broader geopolitical noise.
The fixed income and currency markets reflected a classic move toward safety. When cash trading resumed, the yield on the benchmark US 10-year bond climbed three basis points to 4.26 per cent. Investors simultaneously pushed the US dollar higher against most major global currencies. Traditional havens like the Swiss franc and gold attracted significant interest. Although spot gold retreated slightly from its peak after closing at a record high on Monday, it remains near historic levels. In the energy sector, West Texas Intermediate crude oil moved against the grain of falling equities, rising to US$59.69 per barrel.
In the cryptocurrency sector, the mood reflects the same hesitation seen in traditional finance. Bitcoin and other digital assets declined, with Bitcoin trading near US$92,500. The CMC Fear and Greed Index currently sits at 42 out of 100, indicating neutral market sentiment. This represents a three-point drop within the last 24 hours. While the index has recovered from the extreme fear level of 27 recorded in December, the recent slide from 45 yesterday suggests that traders are growing increasingly wary of the current price action.
Social sentiment currently leans toward the bearish side of the spectrum. The social sentiment algorithm indicates a score of 4.85 out of 10, placing it just below the neutral threshold. Conversations among market participants are divided between reports of whale accumulation and concerns over regulatory actions, such as the delisting of specific assets like MYRO. This negative tilt in social discourse, combined with a 4.17 per cent drop in open interest to US$626.4 billion, shows that leverage is leaving the system.
Despite the prevailing gloom, technical indicators offer a more nuanced perspective. The RSI7 for the total crypto market cap has reached an oversold level of 18.82. Historically, such low readings suggest that the market might be due for a short-term relief rally. Furthermore, liquidations in Bitcoin markets fell by 94.79 per cent to US$6.46 million, suggesting that the most aggressive forced selling may have subsided for now. These technical signals create a neutral outlook where the risks of further deleveraging face off against the potential for a technical bounce.
The intersection of political threats and technical market conditions defines the current landscape. With Bitcoin dominance holding at 59.07 per cent, capital appears to be rotating into the largest digital asset as a potential hedge against broader market instability. The combination of cautious derivatives activity, mixed social signals, and renewed trade friction suggests that investors should remain prepared for continued uncertainty. While the markets are not yet in a state of panic, the shift from greed toward a more defensive posture is unmistakable.
Source: https://e27.co/bitcoin-pulls-back-to-us92500-as-market-sentiment-turns-cautious-20260120/
The post Bitcoin pulls back to US$92,500 as market sentiment turns cautious appeared first on Anndy Lian by Anndy Lian.
MegaETH to Open Mainnet for 'Global Stress Test' Before Public Launch
MegaETH's plan to open its mainnet for a "global stress test" before public launch is a prudent approach to ensuring network stability and security. In a space plagued by hacks and technical issues, prioritizing rigorous testing builds user trust and confidence. This emphasis on resilience is essential for scaling blockchain technology and for encouraging widespread adoption of new platforms.
MegaETH's plan to open its mainnet for a "global stress test" before public launch is a prudent approach to ensuring network stability and security. In a space plagued by hacks and technical issues, prioritizing rigorous testing builds user trust and confidence. This emphasis on resilience is essential for scaling blockchain technology and for encouraging widespread adoption of new platforms.
UK Parliamentary Panel Flags AI Oversight Gaps as Financial System Risk
A UK parliamentary panel highlighting AI oversight gaps as a potential risk to the financial system suggests a growing recognition of the intersection of new technologies and systemic stability. As AI is increasingly used in trading and risk management, clear regulations are needed to prevent AI-driven market failures. This indicates future regulatory scrutiny on AI use in finance, which will likely impact crypto and traditional markets.
A UK parliamentary panel highlighting AI oversight gaps as a potential risk to the financial system suggests a growing recognition of the intersection of new technologies and systemic stability. As AI is increasingly used in trading and risk management, clear regulations are needed to prevent AI-driven market failures. This indicates future regulatory scrutiny on AI use in finance, which will likely impact crypto and traditional markets.
A glitch on the less-known Paradex exchange caused Bitcoin's price to briefly crash to zero, forcing a rollback. This highlights significant technical and liquidity risks on smaller platforms, which can lead to mass liquidations and user losses. It serves as a stark warning to traders to use reputable exchanges with robust infrastructure and ample liquidity to mitigate such operational risks and protect their capital.
Michael Saylor's suggestion of disclosing additional Bitcoin purchases next week underscores MicroStrategy's strategy of linking company value directly to Bitcoin. This approach creates "reflexive financial leverage" and shows strong belief in Bitcoin's future. This signals to the market that institutional interest remains high, which could encourage other corporations to follow suit and add further momentum to the ongoing trend of corporate Bitcoin adoption.
Bermuda Aims to Build a 'Fully Onchain' Economy with Coinbase and Circle
Bermuda partnering with Coinbase and Circle to build a "fully onchain" economy is a pioneering move for a sovereign nation. This demonstrates a commitment to innovation and positions Bermuda as a leader in digital economy integration. The initiative could serve as a vital proof-of-concept for other nations and further drives institutional adoption of crypto and stablecoins within a regulatory framework.
Bermuda partnering with Coinbase and Circle to build a "fully onchain" economy is a pioneering move for a sovereign nation. This demonstrates a commitment to innovation and positions Bermuda as a leader in digital economy integration. The initiative could serve as a vital proof-of-concept for other nations and further drives institutional adoption of crypto and stablecoins within a regulatory framework.
Portugal's decision to crack down on Polymarket, following a global trend of stricter oversight on prediction markets, highlights the regulatory challenges faced by novel crypto platforms. Regulators often struggle to classify these markets, leading to inconsistent enforcement. This poses a challenge to the "decentralized" nature of crypto and emphasizes the need for clearer, more consistent global regulatory frameworks to ensure the survival and growth of such innovative platforms.
The attack on the MakinaFi platform, resulting in the loss of approximately 1299 ETH, highlights the persistent smart contract risks in the DeFi space. Even as the market matures, vulnerabilities in protocols can lead to significant financial losses for users. This incident underscores the critical importance of rigorous security audits, bug bounties, and decentralized insurance options to mitigate these risks and build a more resilient DeFi ecosystem.
South Korean Authorities Dismantle $100 Million Underground Crypto Scheme
South Korean authorities dismantled a $100 million underground crypto scheme, a reminder that the digital asset space still attracts illicit activities. This action highlights ongoing global efforts by law enforcement to crack down on financial crime within the crypto ecosystem. While negative news, it is a necessary step towards a cleaner and more regulated industry, which in turn can foster greater trust and mainstream adoption.
South Korean authorities dismantled a $100 million underground crypto scheme, a reminder that the digital asset space still attracts illicit activities. This action highlights ongoing global efforts by law enforcement to crack down on financial crime within the crypto ecosystem. While negative news, it is a necessary step towards a cleaner and more regulated industry, which in turn can foster greater trust and mainstream adoption.
Ethereum Network Activity Surge Linked to Address Poisoning Attacks
A surge in Ethereum network activity and record low gas fees have been linked to an increase in address poisoning attacks, a type of scam that contaminates transaction histories. This is a concerning security trend, even as it reflects the network's efficiency after the Fusaka upgrade. It emphasizes the ongoing need for user education on security best practices and for developers to enhance scam prevention mechanisms.
A surge in Ethereum network activity and record low gas fees have been linked to an increase in address poisoning attacks, a type of scam that contaminates transaction histories. This is a concerning security trend, even as it reflects the network's efficiency after the Fusaka upgrade. It emphasizes the ongoing need for user education on security best practices and for developers to enhance scam prevention mechanisms.
The New York Stock Exchange is developing a venue for 24/7 trading of tokenized stocks and ETFs using blockchain technology. This is a transformative step for traditional finance, eliminating time barriers and increasing market efficiency. It demonstrates a strong belief in the future of tokenization for legacy assets.
A long-dormant Bitcoin wallet from 2013 moved 909 BTC, now worth over $84 million, to a new address. This often fuels speculation of an imminent sale, but the coins were not sent to an exchange, suggesting consolidation or a security upgrade. This showcases the incredible long-term value appreciation of Bitcoin and reminds us of the "whale watching" aspect of on-chain analysis in anticipating major market moves.
Bitcoin dropped below $92,000 on January 20, 2026, due to intensified "risk-off" sentiment following new US tariff threats against European nations. This geopolitical tension drove investors towards traditional safe havens like gold, and away from risk assets including equities and crypto majors. The drop, which triggered over $800 million in long liquidations, highlights Bitcoin's ongoing vulnerability to global macroeconomic concerns despite its narrative as a hedge against fiat inflation.
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