#我的周末交易计划 Cryptocurrency markets experienced a broad decline, with Bitcoin losing the $85,000 level

In the early hours of January 30th, the cryptocurrency market saw a massive sell-off, with the entire sector plunging collectively. As of 7:30, Bitcoin dropped over 5%, falling below the $85,000 mark to $84,645 per coin; Ethereum, SOL, and Dogecoin fell more than 6%, Cardano and FIL declined nearly 7%, XRP dropped nearly 6%, with a fierce downward trend. The sharp decline triggered leveraged liquidations, leading to a wave of market liquidations. CoinGlass data shows that over 227,000 investors worldwide were liquidated in the past 24 hours, with a total liquidation amount of $1.007 billion (about 7.05 billion RMB), as bullish investors hurriedly exited. This turbulence also spread to the US stock market, with crypto-related stocks plunging across the board, Strategy down over 9%, Bitfarms down over 5%, and several others like CbGlobal falling more than 3%.

Multiple negative factors converged, becoming the main causes of this major drop.

On one hand, crypto giant Tether announced plans to allocate 10%-15% of its funds into physical gold, coupled with the fact that the world's largest gold ETF holdings hit a four-year high, indicating that capital is rapidly flowing from the crypto market into traditional safe-haven assets like gold;

On the other hand, geopolitical tensions continue to escalate, with Trump considering new strikes on Iran, which responded strongly with preparations for war. Amid rising risk aversion, cryptocurrencies could not withstand the pressure.

Recent Bitcoin Trends

Currently, cryptocurrencies are caught in an awkward situation of “not leaning on either side”: they cannot match gold as a safe haven, nor can their risk appeal compete with AI, leading to a continuous decline in capital attraction.

On-chain data shows that Bitcoin holders experienced their first collective loss in 2023. Even if spot prices have not collapsed, many investors have cut losses and exited, with market confidence continuously eroding; over the past week, Bitcoin-related funds saw over $1.3 billion in withdrawals, and the ETF divestment trend continues.

This major decline has also shattered the “digital gold” halo of Bitcoin. Recently, its performance has lagged far behind gold and silver, and under geopolitical tensions, it has shown no hedge value. Institutions like Citigroup have also pointed out that its so-called inflation hedge function is merely coincidental, with prices mainly supported by liquidity and risk appetite, and not by geopolitical or dollar trends. Since reaching a record high in October last year, Bitcoin has retraced over 30%. The recent fall below the $85,000 critical support level indicates short-term market pressure. The $80,000 level will become an important defense line, and its future trend will still be influenced by gold performance, geopolitical developments, and global liquidity conditions.