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.

Bitcoin fell nearly 10% after losing the $86,500 area and is nearing the $80,000 support. According to an hourly BTC/USD analysis (data feed from Kraken), resistance sits at $82,000–$83,200, while supports align at $81,000, $80,500, and $80,000. A move above $83,200 could open $85,000–$85,700; failure risks $77,000 and $75,000.

On 30 January 2026, Bitcoin traded around $84,500 during a sharp market pullback, while the total crypto market cap dropped to about $2.87 trillion, nearly 5% lower. Bitcoin now sits roughly 83% above its prior cycle high and has rebounded around 730% from its bear-market low, compared with only about 6% above the previous peak and a roughly 300% recovery for the altcoin-focused TOTAL3 index. This widening performance gap has raised concerns that institutional flows and market structure may be increasingly favoring Bitcoin over the broader altcoin sector.

Michael Saylor, Strategy's founder and chairman, rejected claims the firm buys "paper BTC," asserting it acquires real Bitcoin and audits custodians. The company holds 712K BTC, with more than 110K said to be untraceable across custodians, and invested about $20B in 2024, $23B in 2025, and close to $4B in 2026. MSTR slipped about 2% to $157.45.

Bitcoin held above the mid-$80,000 area this week as buyers stepped in near key support and prevented a sharper breakdown. Analysts highlight that around 22% of the supply now sits below its purchase price and argue that a sustained recovery likely depends on stronger liquidity, tracked through on-chain metrics like the 90‑day realized profit/loss ratio. Exchange inflows remain muted and derivatives positioning points to the risk of a brief liquidity grab toward the low-$90,000s.

On Thursday, Bitcoin fell to its lowest level in over two months near $84,000 as risk appetite waned after Microsoft shares dropped 11%. Despite a 26% drawdown over 90 days and $360 million in BTC futures liquidations, Bitfinex margin longs climbed to 83,933 BTC, the highest since November 2023. Arbitrage and funding dynamics suggest the jump in longs is not a straightforward bullish signal.