Singapore, Jan 30, 2026, 19:14 (SGT) — Regular session
- Bitcoin and ether fell as traders cut risk into month-end.
- Focus stayed on the White House’s Fed chair decision and its implications for liquidity.
- U.S.-listed spot bitcoin ETFs have seen heavy withdrawals this week.
Bitcoin, which trades around the clock, was down 5.9% at $82,667 by 1114 GMT after touching $81,169 earlier in the session. Ether fell 6.9% to $2,733.
Investors have turned cautious as U.S. President Donald Trump prepares to name a successor to Federal Reserve Chair Jerome Powell, with former Fed Governor Kevin Warsh emerging as the market favourite. Sonu Varghese, global macro strategist at Carson Group, said a Warsh pick could leave a Fed that “tilts hawkish at the margin,” partly through plans to shrink the central bank’s balance sheet — its bond holdings — which can drain liquidity from markets. (Reuters)
At the same time, money has been leaving U.S. spot bitcoin ETFs — funds that hold bitcoin directly — removing a key source of demand. The products posted net outflows of $817.8 million on Jan. 29, led by $317.8 million from BlackRock’s IBIT and $168.0 million from Fidelity’s FBTC, Farside Investors data showed. (Farside)
Wall Street futures also slipped after Trump said he had settled on his choice, with betting markets putting the odds of a Warsh nomination at 94% on Polymarket. Susannah Streeter, chief investment strategist at Wealth Club, said Warsh has leaned toward rate cuts lately but “is likely to hold the line” if inflation flares. (Reuters)
Crypto has also moved with broader risk sentiment after investors questioned the payback from Big Tech’s AI spending. Microsoft sank about 10% on Thursday, wiping more than $350 billion from its market value, and Jesse Cohen, a senior analyst at Investing.com, said the market was “questioning whether these massive capital expenditure hikes will generate sufficient returns.” (Reuters)
Damien Boey, a portfolio strategist at Wilson Asset Management, said talk of a smaller Fed balance sheet can “pull the rug” from trades built as hedges against easy money, including crypto. Sean Dawson, head of research at Derive.xyz, said “fears around AI exuberance” were also a big contributor to Friday’s selling, with bitcoin now down about a third from October’s record highs and headed for a fourth straight monthly decline — the longest losing streak since 2018. (Reuters)
Bitcoin hit a fresh record above $126,000 in early October before a sharp pullback later that month underscored how quickly leveraged positions can unwind. It traded as low as about $104,783 during Oct. 10-11, Reuters reported at the time. (Reuters)
The slide could fade if Trump picks a chair seen as less inclined to tighten financial conditions, or if bond yields retreat and give risk assets breathing room. But persistent ETF withdrawals and a firmer dollar would leave bitcoin exposed, particularly into month-end rebalancing.
Traders are watching Trump’s formal announcement, expected later on Friday, for any clues on how the White House wants the Fed to treat rates and the balance sheet. Powell’s term as chair ends in May, and a nominee must be confirmed by the Senate. (Reuters)
