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The Daily Drip
Friday, January 30, 2026
The Daily Drip
âś… Top Takeaways
- BTC breaks key support: Bitcoin is trading in the low‑$82Ks after briefly touching $81K, more than 34% below its October highs and now firmly below the $84K zone that held for months.
- Warsh nomination jars risk assets: President Trump’s choice of former Fed Governor Kevin Warsh — seen as more hawkish than Powell — has investors repricing the path of rates and shedding higher‑beta crypto exposure.
- ETF outflows and liquidations bite: U.S. spot products are losing assets even as perps see over $800M in forced unwinds, creating a feedback loop of lower prices, tighter liquidity and wider spreads in altcoins.
đź“° Crypto Market Summary
Bitcoin fell as much as 3.9% to $81,102, its weakest level since November 21, extending losses to over 34% from its October all-time high. The cryptocurrency market faces heavy selling pressure as billions flow out of US-based Bitcoin ETFs, signaling waning institutional confidence.
President Trump's selection of former Fed Governor Kevin Warsh to replace Jerome Powell has rattled cryptocurrency markets. Warsh is perceived as more hawkish than Powell, raising concerns about tighter monetary policy that historically pressures risk assets like Bitcoin and altcoins.
Ether dropped 5.52% to $2,662, falling below the key $2,800 support level, while XRP declined 4.56% to $1.72, hitting its lowest level since mid-October. Both assets reflect broader crypto weakness as investors rotate away from higher-risk altcoins during market stress.
Solana declined 2.11% to $115.13, outperforming peers like Ethereum and XRP on a relative basis. However, the token remains down nearly 9% over the past week, reflecting the broad risk-off sentiment sweeping through digital asset markets.
Bitcoin has decisively broken below the crucial $84,000 support that held since mid-November 2025, with analysts warning the next support zones lie at $80,600 and potentially $74,500. Technical indicators show strong bearish momentum with RSI in oversold territory and bearish MACD crossovers.
The crypto market experienced over $800 million in liquidations as B
🌍 Macro & Policy Check
- From Powell put to Warsh wall: Markets had gradually priced in a gentle cutting cycle; Warsh’s nomination revives memories of tighter‑for‑longer playbooks, which historically hit long‑duration assets, growth stocks and crypto hardest.
- Dollar and yields stabilize: After weeks of weakness, the dollar and real yields are starting to firm, undercutting the “buy anything scarce” trade that previously supported BTC alongside gold and silver.
- Risk parity de‑risking: Multi‑asset funds are trimming both equities and crypto while adding to cash and short‑dated government paper, reinforcing the idea that this move is about portfolio‑level risk management rather than a crypto‑specific blow‑up.
If Warsh’s confirmation path looks smooth and data stay firm, expect rallies to be sold rather than chased — at least until signs of policy pushback or growth fatigue emerge.
đź’° ETF Flows & Market Structure
Yesterday’s listed‑product data show a modest $8.5M in net inflows across crypto ETFs, masking a sharp divergence: roughly $19.6M left BTC funds while about $28.1M went into ETH vehicles.
Even with that small headline inflow, the S&P Cryptocurrency Broad Digital Asset Index fell 5.66% on the day and now sits 3.81% lower year‑to‑date, highlighting how on‑exchange selling and liquidations are outweighing any slow‑bleed institutional nibbling.
Desk take: the “de‑BTC, re‑weight into ETH” pattern suggests allocators still want some liquid crypto exposure but are less comfortable owning the most macro‑sensitive asset into a potentially more hawkish Fed regime.
đź“Š Sentiment Dashboard
🔢 Market Performance
| Coin | Dec 31 | Now | 24h % | 7d % | YTD % | Cap |
|---|---|---|---|---|---|---|
| BTC | $87,508.83 | $82,185.52 | -1.82% | -9.46% | -6.08% | $1,642.26B |
| ETH | $2,967.04 | $2,663.20 | -4.88% | -11.00% | -10.24% | $321.43B |
| USDT | $1.00 | $1.00 | 0.00% | -0.03% | 0.01% | $185.57B |
| XRP | $1.84 | $1.73 | -4.00% | -11.46% | -6.23% | $104.99B |
| BNB | $863.26 | $836.25 | -2.98% | -7.16% | -3.13% | $114.03B |
| SOL | $124.48 | $115.22 | -1.40% | -10.56% | -7.44% | $65.23B |
| TRX | $0.28 | $0.29 | 0.30% | -2.32% | 4.27% | $27.65B |
| DOGE | $0.12 | $0.11 | -1.03% | -9.64% | -4.71% | $19.27B |
| ADA | $0.33 | $0.32 | -3.37% | -12.84% | -3.15% | $11.52B |
| BCH | $598.96 | $547.08 | -1.35% | -8.32% | -8.66% | $10.93B |
- BTC, ETH, SOL and most large caps are now negative both on the week and year‑to‑date, confirming that this is more than a simple post‑high shakeout.
- TRX stands out as one of the few majors still positive YTD, while DOGE and ADA show double‑digit weekly losses that highlight just how aggressively traders are cutting meme and smart‑contract beta.
- Market‑cap rankings remain largely intact, but the gap between BTC/ETH and the rest of the field has widened again as capital hides in relative liquidity.
⚡ Risk & Market Lens
With BTC below $84K support, ETF money dripping out and a hawkish‑leaning Fed chair on deck, the burden of proof has flipped: bulls now need a clear macro or policy catalyst to stop this from becoming a deeper, multi‑month drawdown.
What to watch: whether BTC can hold the $80.6K area on closing bases, if ETF outflows accelerate or stabilize next week, and how other risk assets (high‑beta equities, small caps and EM) trade as investors reassess the Warsh Fed path.
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OPEN YOUR H2cryptO ACCOUNTDisclaimer
This newsletter is for informational and educational purposes only and is not investment advice, solicitation, or an endorsement of any strategy or asset. H2cryptO does not warrant data accuracy or completeness. Crypto assets are highly volatile; always consult professional advisors, use caution, and comply with local laws before making strategic, financial, or investment decisions.