Crypto markets sell off as US stocks and global markets react to President Trump’s new tariff threats. Will the tensions put a stop to Bitcoin’s start-of-year recovery? 🔗 Source 💡 DMK Insight Crypto markets are feeling the heat from Trump’s tariff threats, and here’s why that matters: The recent sell-off in crypto, particularly Bitcoin, reflects broader market anxieties. When geopolitical tensions rise, risk assets often take a hit as investors flock to safety. This could stall Bitcoin’s recovery momentum, which had been gaining traction at the start of the year. Traders should keep an eye on how Bitcoin reacts around key support levels—if it breaks below recent lows, it could trigger further selling pressure. Additionally, the correlation between Bitcoin and US stocks is worth monitoring; if equities continue to decline, Bitcoin may follow suit. But here’s the flip side: if the market perceives these tariff threats as bluster rather than a real escalation, we could see a quick rebound. Watch for any statements from the White House that might clarify the situation. For now, focus on the $30,000 level for Bitcoin—holding above this could signal resilience, while a drop below might lead to a test of lower support levels. Keep your eyes peeled for volatility in the coming days as traders react to news cycles. 📮 Takeaway Monitor Bitcoin’s performance around the $30,000 level; a break below could signal further downside risk amid rising geopolitical tensions.
$1.8B liquidated in 48 hours as Bitcoin wipes out 2026 gains
Bitcoin erased its gains for the month and fell below $88,000 as crypto markets shed $225 billion, with analysts linking the crash to a “sell America” trade and Japanese bond market woes. 🔗 Source 💡 DMK Insight Bitcoin’s drop below $88,000 isn’t just a number—it’s a signal of broader market anxiety. The $225 billion loss in crypto markets reflects a significant shift in sentiment, likely fueled by the ‘sell America’ trade, which suggests investors are pulling back from U.S. assets amid rising global uncertainties. This could lead to increased volatility in Bitcoin and altcoins as traders reassess their positions. Watch for key support levels around $85,000; a break below that could trigger further selling pressure. Additionally, the turmoil in the Japanese bond market adds another layer of complexity, as it may drive capital flows away from riskier assets like crypto. On the flip side, this could also present a buying opportunity for those looking to accumulate at lower levels, especially if Bitcoin rebounds from support. Keep an eye on the daily chart for any bullish reversal patterns that could signal a recovery. The next few days will be crucial for determining whether this is a temporary dip or the start of a more significant downtrend. 📮 Takeaway Monitor Bitcoin’s support at $85,000 closely; a break could lead to further declines, while a bounce might signal a buying opportunity.
Bitcoin fills new year CME gap with sub-$88K BTC price dip
Bitcoin hit a key BTC price target from the start of January, with other CME futures gaps now above price, but traders remained cautious. 🔗 Source 💡 DMK Insight Bitcoin just hit a major price target at $88,238, and here’s why that’s significant: This level aligns with the CME futures gaps that traders have been eyeing since January. The fact that Bitcoin has reached this point could trigger a wave of profit-taking or short positions, especially given the cautious sentiment in the market. Traders should keep an eye on how Bitcoin reacts around this level—if it holds, we might see a bullish continuation, but a failure to maintain above could lead to a quick retracement. Also, consider the broader context: with Bitcoin’s recent volatility, correlated assets like Ethereum might also react. If Bitcoin starts to pull back, expect Ethereum to follow suit, potentially testing its own support levels. Watch for any significant volume changes or news that could sway sentiment, as these could be pivotal in determining the next move. Key levels to monitor are the immediate support around $85,000 and resistance at $90,000. The next few days will be crucial for setting the tone for the upcoming weeks. 📮 Takeaway Watch for Bitcoin’s reaction at $88,238; a hold could signal bullish momentum, while a drop below $85,000 may trigger selling pressure.
Can Bitcoin regain $90K? Bulls at risk as long-term holders ramp up selling
Bitcoin risks a further decline to $84,000, following rising whale exchange deposits and accelerated long-term holder selling. 🔗 Source 💡 DMK Insight Bitcoin’s potential drop to $84,000 is more than just a number—it’s a signal of shifting market dynamics. Rising whale deposits indicate that large holders are offloading their positions, which often precedes price declines. This behavior, coupled with long-term holders selling, suggests a bearish sentiment that could pressure Bitcoin further. If we see sustained selling, it could trigger a cascade effect, pulling in more retail investors to sell in panic. Traders should keep an eye on the $84,000 level as a critical support point. If breached, it could lead to a more significant downturn, potentially testing lower levels. Watch for volume spikes in whale activity and monitor sentiment indicators for signs of capitulation among retail traders. The next few days could be pivotal, especially if Bitcoin fails to reclaim previous resistance levels. 📮 Takeaway Watch for Bitcoin’s price action around $84,000; a break below could signal further declines as whale selling accelerates.
The Australian Dollar remains supported amid hawkish bets. Jobs data next risk event.
FUNDAMENTAL OVERVIEWUSD:The US Dollar has been weakening across the board in this first part of the week following Trump’s escalation over Greenland. The main narrative for the greenback’s weakness is once again de-dollarisation due to the messy and aggressive US policies. The squeeze on recent dollar longs might be more about positioning though. Given the recent USD strength on some slightly hawkish repricing, this latest escalation kind of unwinds those bets. If we were to get a de-escalation, we would probably see a relief rally in the US Dollar, and more so if the economic data in the next weeks and months strengthens. Today, all eyes will be on Davos where Trump will be giving a speech at the World Economic Forum and then will hold discussions with leaders about Greenland and other matters. Watch out for headlines or Truth Social posts as they could impact the market in a big way.AUD:On the AUD side, the RBA at the last policy decision sounded more hawkish following a series of higher-than-expected inflation reports. The central bank also discussed whether a rate hike might be needed at some point in 2026. The market is pricing a 29% probability of a rate hike at the upcoming meeting in February with a total of 38 bps of tightening seen by year-end. Tomorrow, we get the Australian employment report, and although the RBA is focusing more on the quarterly inflation report coming next week, the labour market data could still influence the market pricing, especially if we see notable deviations. Given the hawkish expectations, a soft report will likely have a bigger impact on the AUD. In such a case, we will likely see the AUD weakening across the board. On the other hand, a hot report should keep on supporting the currency amid the hawkish bets. AUDUSD TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that AUDUSD bounced from the support zone around the 0.6665 level and extended the gains following Trump’s escalation over Greenland. There’s not much we can glean from this timeframe, so we need to zoom in to see some more details.AUDUSD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see more clearly the rally from the 0.6665 support zone that quickly erased all the January’s dollar gains. From a risk management perspective, the buyers will have a better risk to reward setup around the support to position for a rally into new highs, while the sellers will need a break lower to open the door for a fall into the 0.6600 handle next.AUDUSD TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see that we have a minor support zone around the 0.6725 level. If the price gets there, we can expect the buyers to step in with a defined risk below the support to position for a rally into new highs. The sellers, on the other hand, will look for a break lower to pile in for a drop back into the 0.6665 support. The red lines define the average daily range for today. UPCOMING CATALYSTSToday all eyes will be on Davos where Trump will deliver his speech at the World Economic Forum and then will hold discussions with leaders about Greenland. We have also the Fed’s Cook hearing today at the US Supreme Court. Tomorrow, we get the Australian employment report and the US Jobless Claims figures. On Friday, we conclude the week with the US Flash PMIs. This article was written by Giuseppe Dellamotta at investinglive.com. 🔗 Source 💡 DMK Insight The US Dollar’s recent weakness signals a potential shift in market sentiment that traders need to watch closely. With Trump’s aggressive stance on Greenland, the narrative of de-dollarisation is gaining traction, raising concerns about the dollar’s long-term stability. This could lead to a squeeze on dollar longs, especially if geopolitical tensions escalate further. Traders should be mindful of how this impacts correlated assets like gold and cryptocurrencies, which often benefit from dollar weakness. Monitoring key levels in the DXY index will be crucial; a break below recent support could trigger further selling pressure. Additionally, keep an eye on economic indicators that could influence Fed policy, as any dovish signals might exacerbate the dollar’s decline. On the flip side, if the dollar manages to regain strength, it could lead to a sharp reversal, catching many off guard. So, it’s essential to stay flexible and ready to adjust positions based on evolving market dynamics. 📮 Takeaway Watch the DXY index closely; a break below key support levels could signal further dollar weakness, impacting related assets like gold and crypto.
UK industrial orders fall once again to start the new year
The monthly order book balance rose to -30 in January, which marks a slight improvement from the -32 estimate in December. That’s the best reading since September but it still points to extended weakness in the industrial sector. For some context, the index remains well below its long-run average of -14.The only bright side is that business optimism is seen improving to -19 from -31 previously. But on the prices side, there is more discouraging news for the BOE. The survey’s gauge of expected prices jumped to 29 (previously 19), which is the highest since February 2023. And that was when the UK got a price shock amid the Russia-Ukraine conflict, so this is something to be mindful of as price pressures remain a concern.CBI notes that existing conditions for manufacturers are “extremely tough”. Adding that:”At the same time, cost pressures – from rising wages, high energy prices and taxes – are squeezing margins and weighing on competitiveness, pushing firms to plan price rises even as demand remains subdued.” This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The recent rise in the monthly order book balance to -30 is a glimmer of hope, but here’s why traders should stay cautious: While the improvement from -32 in December suggests a potential stabilization, it still indicates ongoing weakness in the industrial sector. This is particularly relevant as many traders look for signs of recovery before making significant moves. The fact that this reading is the best since September might entice some to consider bullish positions, but with the index still below its long-run average, the risk of a false breakout looms large. Traders should keep an eye on related sectors, particularly materials and manufacturing stocks, which could react to any shifts in sentiment. Watch for any further improvements in the upcoming months, as sustained positive readings could signal a more robust recovery. In the meantime, keep your stops tight and be prepared for volatility, especially if economic data continues to underperform expectations. 📮 Takeaway Monitor the industrial sector closely; a sustained improvement above -30 could signal a shift, but be wary of volatility.
South Korea weighs ending one-bank rule for crypto exchanges: Report
South Korea is reportedly reviewing exclusive bank partnerships for crypto exchanges as regulators assess competition and prepare the Digital Asset Basic Act. 🔗 Source 💡 DMK Insight South Korea’s move to review exclusive bank partnerships for crypto exchanges is a game changer. This could reshape the competitive landscape as regulators push for the Digital Asset Basic Act. If banks are restricted from partnering with multiple exchanges, it could limit liquidity and access for traders, making it harder to execute trades efficiently. Watch for how this impacts major exchanges like Upbit and Bithumb, which could face operational challenges. On the flip side, if this leads to a more regulated environment, it might attract institutional investors looking for safer avenues in crypto. Traders should keep an eye on regulatory announcements and potential shifts in trading volumes, especially in the short term as the market reacts to these developments. Key levels to monitor will be the trading volumes and price movements of major cryptocurrencies in response to any news from the South Korean government, particularly over the next few weeks. 📮 Takeaway Watch for regulatory updates from South Korea that could impact liquidity and trading strategies, especially as the Digital Asset Basic Act progresses.
Crypto mortgages in US face valuation risks, regulatory uncertainty
Some lenders are willing to accept Bitcoin and recognize crypto holdings when considering a mortgage application, but issues around risk remain. 🔗 Source 💡 DMK Insight Lenders accepting Bitcoin for mortgages is a game changer, but risk factors loom large. This shift reflects a growing acceptance of crypto in traditional finance, potentially opening doors for buyers who hold significant crypto assets. However, the volatility of Bitcoin poses a risk for both lenders and borrowers. If Bitcoin’s price swings dramatically, it could impact the loan-to-value ratio, leading to potential margin calls or refinancing issues. Traders should keep an eye on Bitcoin’s price movements and volatility metrics, as these will directly influence lending conditions and borrower confidence. Also, consider the broader implications for the housing market. If more lenders adopt this approach, it could drive demand for properties, especially in markets where crypto wealth is concentrated. Watch for any regulatory changes that might affect this trend, as government stances on crypto can shift quickly. Key levels to monitor include Bitcoin’s support and resistance zones, which could signal shifts in market sentiment that affect lending practices. 📮 Takeaway Watch Bitcoin’s volatility closely; significant price swings could impact mortgage lending conditions and borrower confidence in the coming months.
US CFTC Chair Selig names crypto lawyer among new senior advisers
CFTC Chair Michael Selig named two senior advisers, including a crypto lawyer who helped draft a law firm’s letter that led to an SEC no-action position on crypto custody. 🔗 Source 💡 DMK Insight CFTC’s new senior advisers could signal a shift in crypto regulation, and here’s why that matters: With a crypto lawyer on board who has influenced SEC positions, traders should brace for potential changes in custody regulations. This could impact how institutions handle crypto assets, possibly leading to increased adoption or, conversely, tighter restrictions. If the CFTC and SEC align more closely, we might see a clearer regulatory framework, which could stabilize the market. Keep an eye on how this affects major cryptocurrencies and related assets like Bitcoin and Ethereum, especially if new guidelines emerge. Watch for any announcements in the coming weeks that could provide clarity on custody rules, as these could influence trading strategies significantly. The flip side? If traders expect a lenient approach and the regulations turn out to be stricter, we could see a sharp market reaction. So, monitor sentiment closely and be ready to adjust your positions based on regulatory news. 📮 Takeaway Watch for upcoming announcements on crypto custody regulations from the CFTC, as they could significantly impact trading strategies and market sentiment.
Massachusetts judge bars Kalshi from offering sports bets: Report
A preliminary injunction against the prediction markets platform reportedly came at the request of Massachusetts Attorney General Andrea Joy Campbell. 🔗 Source 💡 DMK Insight A preliminary injunction against a prediction markets platform could shake trader confidence in regulatory environments. This move by Massachusetts Attorney General Andrea Joy Campbell signals a tightening grip on crypto-related activities, which might lead to increased scrutiny across the sector. Traders should be wary of how this could affect sentiment, especially for platforms that rely on user-generated predictions. If similar actions spread to other states, we could see a ripple effect impacting trading volumes and liquidity. Keep an eye on related assets, particularly those tied to prediction markets or decentralized finance, as they may experience volatility in the wake of this news. The broader implications could also influence regulatory discussions at the federal level, potentially altering the landscape for crypto trading strategies. Watch for any updates from other states or regulatory bodies, as these could provide insight into the future of prediction markets and associated trading opportunities. 📮 Takeaway Monitor regulatory developments closely; a shift in sentiment could impact prediction markets and related assets significantly.