Bitcoin fell into multiday lows on Sunday as traders closed the week nervously ahead of major macro events, with BTC/USD sliding to about $87,500 on Bitstamp. Market concern centered on a possible U.S. government shutdown, tariff threats, and the upcoming Federal Reserve decision. (Ed. note: the Fed meeting is scheduled for Jan. 28.)
Long positions drove most of the over $250 million in 24-hour crypto liquidations, according to CoinGlass. A separate report showed roughly $60 million in levered longs were wiped in a 30-minute move, the The Kobeissi Letter said.
The Kobeissi Letter warned traders to “Buckle up for a huge week ahead” as macro data and tariff headlines pressure markets, and it highlighted Fed rate risk via the CME Group FedWatch Tool. CrypNuevo noted that BTC losing its mid-range looks bearish and set a bulls’ line at $86,300.
He added, “Any short-lived pump this week is a potential short opportunity.” Open interest also rose sharply into the weekly close, a move flagged by Byzantine General.
Some analysts saw a silver lining in asset rotation. Michaël van de Poppe pointed to a possible bullish divergence between BTC and silver on the three-day chart, suggesting silver may peak as capital shifts toward other assets.
