The cryptocurrency market experienced a sharp shock, with a loss of approximately $200 billion in value in the 24-hour period between January 29 and 30. While the total market value decreased from 2.96 trillion dollars to 2.76 trillion dollars, the decline was recorded as a reflection of the deterioration in global risk appetite on cryptocurrencies. While the increasing volatility in the last days of January weakened investor confidence, the simultaneous emergence of political and geopolitical uncertainties deepened the selling pressure. The decline is considered as a new phase of the large-scale correction that started in the last quarter of 2025.
Global and Domestic Political Risks Accelerated Sales
In the background of the sharp retreat in the crypto market, US-based political developments played a decisive role. Allegations of criminal investigation against Federal Reserve Chairman Jerome Powell and President Donald Trump’s announcement of his new Fed chairman candidate in the first week of February have increased the uncertainty regarding monetary policy. Markets priced the discussions on central bank independence as a risk factor.
Domestically, the federal government shutdown, which is likely to occur on January 31, has created additional pressure on risky assets. The budget process is stalled in the US Congress due to disagreements over funding for Immigration and Customs Enforcement (ICE). Legal and political tensions following the killing of a protester and a VA nurse in Minneapolis also negatively affected investor sentiment.
On the international front, while the Trump administration’s toughening of the 60-year-old embargo against Cuba attracted attention, the real concern was concentrated in the Middle East. The movement, which points to preparations for a possible military operation against Iran, has brought to the fore the risks to global oil supply through the Strait of Hormuz. Like all risk assets sensitive to the energy market, cryptocurrencies were directly affected by this tension.
Bitcoin Leads the Decline with $110 Billion Loss
Approximately 110 billion dollars of the 200 billion dollar meltdown in the market was caused by Bitcoin. While the market value of Bitcoin decreased from $1.76 trillion to $1.65 trillion in one day, the price dropped to $82,301. Thus, the 100-day moving average around $ 85,000, which has been watched as technical support for a long time, was broken downwards.
Analysts note that Bitcoin’s short-term direction depends on whether the support zone above $80,000 can be maintained. It is stated that the $ 88,000 level is a strong resistance in case of a possible upward reaction movement. January 31 and February 1, which fall on the weekend, carry potential volatility risks due to both political developments and liquidity conditions.
The pricing indicates that the long-term downward trend, which started after Bitcoin peaked at $125,000 in October 2025, continues. While Ali Martinez, known for his intra-Blockchain analysis, argues that the traditional four-year cycle may have become obsolete, he predicts that Bitcoin’s possible cycle bottom may occur around $ 38,000 in October 2026.
