2026-01-09 08:25:49

This week's cryptocurrency market has been full of twists and turns. The total market capitalization evaporated by $120 billion in just a few days, and the enthusiasm from the early January rebound has completely cooled down.

Especially Bitcoin, which had rebounded strongly recently thanks to the support of spot ETF inflows (over $1 billion in weekly inflows). But by mid-week, the market turned 180 degrees. Data shows that on Tuesday and Wednesday, the US spot ETF experienced a net outflow of $729 million. Meanwhile, Bitcoin's price was forcibly pushed down by over $4,500, dropping from $94,500 to $90,000.

**Why is this happening? The Federal Reserve's stance has changed.**

The market is now betting on one thing — whether the Federal Reserve will pause interest rate hikes at the January 29 meeting. This expectation has heavily suppressed market sentiment. Data indicates that the probability of a rate pause has risen to 86.7% (up 4% in the past two days). As we approach mid-January, with the employment report on the 9th and inflation data on the 14th, these two reports could completely change market expectations for rate cuts and thus influence the overall trend of risk assets.

With expectations that interest rates might stay in the 3.50%-3.75% range, it makes sense that cryptocurrencies are under pressure.

**But altcoins are having an even harder time.**

Although Bitcoin only fell 5%, major altcoins suffered more significant declines during this correction. XRP dropped from $2.4 to $2, a 14% decline, nearly halving its January gains. ETH's situation isn't much better.

Currently, short-term traders should keep a close eye on the $2 support level. This is not just a psychological price point; it also coincides with the 50-day moving average. Holding this level could be key to a reversal.

BTC3,34%

XRP4,01%

ETH6,32%

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DarkPoolWatcher

· 01-12 08:11

It's the Federal Reserve messing around again, always like this. --- All the gains XRP吐出来 made have been wiped out, let's wait for the data on the 9th. --- If it doesn't break $2, there's still hope; if it breaks, it's over. --- Spot ETF outflows exceed $700 million, this speed is unbelievable. --- Altcoins are really begging for mercy, Bitcoin only dropped 5%, they dropped 14%. --- Interest rates remain high, crypto will be tough for a while longer. --- Those betting on a pause in rate hikes have all lost, can the employment report turn things around? --- The two data points in mid-January are critical; if the bet is wrong, everything will collapse. --- It's the usual routine, when the Federal Reserve moves, the market gets chaotic.

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ZeroRushCaptain

· 01-11 18:57

Here it comes again. The Federal Reserve turns around, and we have to do somersaults. This time, they directly cut 120 billion, and I need to recharge my withdrawal card. When XRP drops from 2.4 to 2, I knew my decision to sell high saved me—haha, finally a counter-indicator works. The $2 line, honestly, is the last psychological defense. Once broken, it's really gone. I bet it won't hold because whatever I buy, it drops—it's a law. Why are altcoins always the worst? Because big players like to play this way—first absorb the chips, then dump the market. We just obediently buy the dip below, and in the end, everyone hits zero together. In the days before the Federal Reserve meeting, I suggest everyone not to waste energy, save your bullets. The battlefield has just begun.

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CryptoComedian

· 01-09 08:54

120 billion evaporated, my wallet is also evaporating. This wave is truly a dream collaboration. ETF outflow of 729 million, BTC dropped from 94,500 to 90,000. Federal Reserve, are you doing this on purpose? XRP fell 14%, giving back half a year's gains. Altcoins are about to completely go to hell. If the $2 level breaks again, I will really be cut into pieces. Every time they say it's support, every time they deceive me. Something's not right. Why do all risk assets follow the Federal Reserve's attitude? Are we this obedient?

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ThatsNotARugPull

· 01-09 08:49

It's the Federal Reserve messing around again, always like this. XRP has dropped so much, I really can't hold on anymore, feeling like I should buy the dip. Can the support at $2 hold? I'm a bit worried. The Federal Reserve is really getting on my nerves, messing with the crypto world every day. Looks like I have to wait for the data to come out, holding coins is a bit tiring now. If I had known, I would have sold at 94500; now I'm really regretful. Altcoins have been really beaten up in this wave, I feel sorry for my bag. If the Federal Reserve doesn't cut interest rates, crypto will have to keep taking the hits. At this position, XRP seems to have little room to fall further, maybe I can set an ambush. Now it's all about the faces of the employment report and inflation data.

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PermabullPete

· 01-09 08:48

Here they come again, these Fed folks are really market killers. Rekt XRP holders, a week wiped out half of the gains, unbelievable. If we can't hold 90K, we're really going back to winter. Altcoins are always cannon fodder, and this time they were forcibly pushed down again. The employment report day is going to be explosive; we'll really have to take it as it comes.

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StableNomad

· 01-09 08:43

ngl this fed pivot narrative is doing heavy lifting rn... 720b wiped in days and everyone's suddenly pretending they saw it coming. statistically speaking the altcoin liquidation cascade is predictable—xrp down 14% while btc barely bleeds 5% always happens when retail gets nervous. reminds me of may when everything correlated to 0.99

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