On January 30, during U.S. evening trading hours, Bitcoin price dropped sharply, hitting a low of $81,000, representing a 24-hour decline of approximately $10,000. The short-term volatility triggered significant risk release in the market.
Large-Scale Liquidation of Leveraged Longs
Monitoring data shows that over $770 million in crypto leveraged long positions were forcibly liquidated within one hour during the price drop. Such liquidations highlight the vulnerability of high-leverage trades during sharp market swings and can amplify short-term panic among traders.
Federal Reserve Personnel Expectations Impact the Market
Comments from U.S. President Trump drew market attention, causing shifts in Polymarket betting probabilities for the next Federal Reserve chair. Kevin Warsh’s likelihood of selection increased, while traders anticipating a more dovish Rick Rieder may have been disappointed. This factor intensified market volatility and sensitivity to short-term capital flows.
Trustformer KYT’s Role in Risk Monitoring
In high-volatility short-term environments, Trustformer KYT can provide platforms and institutions with on-chain fund tracking and abnormal trade monitoring. Real-time data analysis helps identify potential risk points and unusual liquidation events, offering actionable insights to investors and platforms while enhancing market transparency.
Market Outlook and Observation
Analysts note that short-term volatility does not necessarily alter Bitcoin’s long-term trend, but large leveraged liquidations show that the market remains highly sensitive. Future monitoring should focus on macro policy changes, personnel expectations, and on-chain fund flows to assess market direction and risk levels.