#加密市场观察 The crypto market experienced a massive shakeout, with Bitcoin once dropping below $81,000. On-chain data revealed astonishing anomalies!

First, let's review the top 10 trending topics over the past 24 hours (January 31, 2026):
Bitcoin rebounded after a sharp decline - BTC once fell to $81,000, with a maximum 24-hour drop of over 7%, then recovered to around $83,000, marking the longest monthly decline since 2019 (Source: Wallstreet.cn, 2026-01-31)
Ethereum fell below $3,000 - ETH dropped from a low of $2,970 to $2,670, a 10% decline in 24 hours, currently trading at $2,720 (Source: Toutiao, 2026-01-30)
Trump nominates Waller as Federal Reserve Chair - Nominating Kevin Waller to succeed Powell, seen as a hawkish choice, triggered sell-offs in cryptocurrencies and other risk assets (Source: Sina Finance, 2026-01-31)
A wave of liquidations hits globally - Over 270,000 traders were liquidated in the past 24 hours, with total liquidation exceeding $1.7 billion (Source: Huaxia Times, 2026-01-30)
Cryptocurrency concept stocks plummet across the board - Strategy stocks plunged over 9%, Bitfarms fell more than 5%, Cb Global and MARA Holdings declined over 4% (Source: Huaxia Times, 2026-01-30)
Gold and silver prices plummeted simultaneously - Gold dropped 10%, silver once plunged over 36%, both traditional safe-haven assets and the crypto market declined together (Source: Wallstreet.cn, 2026-01-31)
Geopolitical tensions escalate - US-Iran situation worsens, Trump deploys ships to Iran, risk aversion sentiment intensifies (Source: Wallstreet.cn, 2026-01-31)
PPI inflation data exceeds expectations - US December Producer Price Index (PPI) rose 3% year-over-year, surpassing market expectations; core PPI increased 0.7% month-over-month, reinforcing hawkish expectations (Source: Wallstreet.cn, 2026-01-31)
The US dollar index sharply rebounds - The dollar rose 0.84%, marking the largest single-day increase since May 2025, putting pressure on risk assets (Source: Wallstreet.cn, 2026-01-31)
Market sentiment shifts to panic - The Fear & Greed Index enters the fear zone, investor caution spreads widely (Source: Market Data, 2026-01-31)

Data interpretation:
This crypto market plunge is not an isolated event but the result of multiple factors resonating together.
From on-chain data, the surge in exchange inflows indicates that institutional investors are withdrawing funds, while the liquidation data reflects concentrated deleveraging by high-leverage traders. Notably, the simultaneous decline of Bitcoin along with traditional safe-haven assets like gold and silver suggests that the current market is more focused on liquidity tightening rather than safe-haven demand.
Honestly, today's intense volatility in the crypto market came somewhat suddenly, but it is understandable. Bitcoin fell from $90,000 all the way down to $81,000, and although it has rebounded to around $83,000, this decline has truly shocked many investors.
Several key factors behind this decline deserve in-depth analysis.
First, the news of Trump nominating Waller as Fed Chair has a significant impact. Waller is an interesting figure—he was previously hawkish on inflation, advocating for rate hikes, but in recent years has shifted to a more dovish stance. Still, the market worries he will maintain relatively hawkish monetary policies, which is bad news for risk assets. Think about it: if interest rates stay high, borrowing costs will be elevated, putting pressure on those trading cryptocurrencies with borrowed funds.
Second, from a fundamental perspective, this decline is supported by data. The US December Producer Price Index (PPI) increased by 3% year-over-year, exceeding expectations, with core PPI rising 0.7% month-over-month. This indicates inflation pressures are still present, and the Federal Reserve may not cut rates quickly. Additionally, the US dollar index surged 0.84%, the largest single-day increase since May 2025, adding macroeconomic pressure on cryptocurrencies.
Interestingly, Bitcoin and traditional safe-haven assets like gold and silver declined together. Normally, during market panic, funds should flow into safe assets. But now, the situation shows investors are more worried about liquidity tightening, leading to widespread sell-offs of assets with higher risk. This reveals that the main contradiction in the current market is not safe-haven demand but concerns over liquidity.
From on-chain data, the surge in exchange inflows is a clear signal that many large holders and institutional investors are withdrawing. The 270,000 liquidations and total liquidation amount of over $1.7 billion reflect concentrated deleveraging by high-leverage traders.
Such signals often indicate that the market is approaching a bottom or entering a phase of adjustment.
However, from a long-term perspective, the fundamentals of the crypto market have not fundamentally changed. Wallstreet institutions continue to enter, and regulatory frameworks are gradually improving. This correction is more technical and a normal response to macroeconomic shifts.
For investors, the most important thing now is to stay rational, avoid panic caused by short-term volatility, and refrain from blindly buying the dip. After all, the crypto market is inherently volatile, and risk management should always be the top priority.