Bitcoin fell sharply this week in early US trading, sliding to slightly above $82,000 and triggering a wave of forced position closures. Data from Coinglass show about 270,000 accounts were liquidated across exchanges in the past day, with nearly $1.70 billion in contracts wiped out, mostly from traders positioned for further price gains. The selloff unfolded amid geopolitical tension, weaker tech earnings and renewed risk aversion across wider markets.

On January 30, 2026, Arthur Hayes said Bitcoin's slump stems from a roughly $300 billion pullback in U.S. dollar liquidity, not crypto-specific factors. He cited a $200 billion jump in the Treasury General Account and noted the USDLIQ index's nearly 7% six-month drop as evidence of tighter conditions.

Multiple outlets report President Donald Trump plans to nominate former Fed governor Kevin Warsh as the next chair, with an official announcement expected Friday morning. Prediction markets swiftly repriced the race, with Polymarket moving from about 30% to 95% and Kalshi at 93%, while markets braced for a more hawkish policy tilt.

On January 29, 2026, economist Peter Schiff said Bitcoin is now worth about 15.5 ounces of gold, 57% below its 2021 high and only roughly 10% above its 2017 peak in gold terms. As Bitcoin trades below $89,000 amid geopolitical tension and a cautious Federal Reserve, analysts highlight renewed demand for gold and silver as investors seek perceived safer assets outside government control.

On Thursday, crypto analyst Benjamin Cowen said Bitcoin is likely to keep losing ground versus the stock market, warning that hopes for a rotation from gold and silver into crypto may be misplaced. Gold and silver hit all-time highs of $5,608.33 and $121.64, and Citi on Tuesday forecast silver could reach $150 within three months. Bitcoin traded at $82,859, down 7.78% over seven days, according to CoinMarketCap.

Donald Trump said he will name his choice for the next Federal Reserve chair, and several outlets reported Kevin Warsh is expected to be the nominee. Prediction markets reflected the shift, with Polymarket moving from 30% to 95% odds for Warsh and Kalshi at 93%, while Rick Rieder fell to 3.4%. Warsh has voiced a more favorable view of Bitcoin, calling it potential market discipline.

Bitcoin dropped to $81,058 on Coinbase in early Friday trading, marking a nine‑month low. CoinGlass reported $1.68 billion in liquidations over 24 hours, with 93% affecting levered longs in BTC and ETH. The selloff aligned with Middle East tensions, Trump’s tariff order, and weak tech earnings.

On Wednesday, CryptoQuant CEO Ki Young Ju reiterated the view that Bitcoin functions as a form of "energy money," arguing that proof-of-work is evolving into a settlement layer for an AI-centric economy constrained by power rather than narratives. He aligned his comments with Hashed CEO Simon Kim's thesis that Bitcoin mining infrastructure and curtailed renewable energy can be monetized as AI demand for high-density, flexible power grows, citing large sovereign wealth allocations and flare-gas projects. Kim further claimed that over half of Bitcoin mining now relies on sustainable energy, that methane-based flare-gas mining materially cuts CO2-equivalent emissions, and that miners in regions like Texas act as controllable loads that support grid stability.