Daily Crypto Market Update
Saturday, January 31, 2026
The market is waking up to a "Risk-Off" weekend following a brutal Friday that saw Bitcoin plunge to its lowest level of 2026. Fear is high, but as the dust settles, "smart money" is already positioning for a rebound.
1. Latest Crypto Market News
The "Warsh" Effect: Markets were spooked yesterday by the nomination of Kevin Warsh as Fed Chair, leading to a massive $1.8 billion liquidation event in crypto derivatives. BTC dropped to $81,000 before a modest recovery.
Senate Momentum: The Digital Asset Market Clarity Act passed a key committee vote (12-11). This is a massive long-term bullish catalyst as it moves to place most cryptos under the CFTC’s commodity framework rather than the SEC’s.
Stablecoin Regulatory Shift: The White House is pushing for the Genius Act, which would require stablecoins like USDT to be 1:1 backed by U.S. Treasuries, effectively turning them into regulated financial instruments.
2. Trending Coins
BTC (Bitcoin): Dominating the conversation after reclaiming $84,000 from the $81k lows.
HYPE (Hyperliquid): One of the few "green" coins this week, gaining over 58% recently as traders move to decentralized perps to avoid exchange risks.
WLFI (World Liberty Financial): Notoriously bucking the trend, posting small gains (+0.4%) while the rest of the market bled.
PIPPIN: The meme coin of the hour, maintaining high social volume despite the market-wide correction.
3. Whale Activity
ETH "Sleeping Giant" Awakes: A whale wallet dormant for 9 years moved $145M worth of ETH to Gemini. This supply hitting the market is why ETH is struggling to reclaim $3,000LINK Accumulation: While retail sold the dip, the top 100 Chainlink (LINK) whales added 16.1 million tokens below $13. This is a classic "divergence" signal often seen before a major rally.
Privacy Pivot: Whales are quietly rotating into mid-cap privacy coins like Horizen (ZEN) and Railgun (RAIL), likely hedging against the upcoming Senate vote on the Clarity Act.
4. Significant Volume Increases
SUI: Massive volume spikes (~$850M) as it fights to hold its position in the top 30.
Zcash (ZEC): Trading volume is up as privacy narratives surge.
Hyperliquid (HYPE): Maintaining near-record volume as it becomes the go-to platform for perpetual trading during this volatility.
#WhoIsNextFedChair #USIranStandoff #ZAMAPreTGESale #FedHoldsRates
