As of January 23, 2026, the decline in virtual currency prices is the result of multiple factors resonating, including macro environment, market structure, sentiment, and capital flows. The core reasons are as follows:

1. Macro Liquidity and Policy Impact

• Bank of Japan Rate Hike Expectations: On January 23, the Bank of Japan may raise interest rates to 0.5% (a new high since 2018), triggering unwinding of yen arbitrage trades, draining global liquidity, and suppressing risk assets like BTC.

• US Trade and Policy Risks: The Trump administration plans to impose tariffs on the EU, leading to a cooling of global risk appetite, with funds shifting from crypto assets to traditional safe havens like gold.

• Fed Rate Cut Expectations Diminish: The US economy shows resilience beyond expectations, with the first quarter’s rate cut possibly lower than market expectations, increasing the opportunity cost of holding crypto assets at high interest rates.

2. Internal Market Triggers

• Profit-Taking at High Levels: Bitcoin approached $100,000 earlier, with long positions accumulating significant profits. After falling below key levels like $95,000, it triggered concentrated selling and chain reactions of stop-loss orders.

• Leverage Liquidations and Market Crash: Approximately $538 million in liquidations occurred across the network within 24 hours, with a high proportion of long positions. Forced liquidations further amplified the decline, intensifying market panic.

• Whales and On-Chain Activity: Some long-term holders and whales sold near the $90,000 mark, combined with large dormant BTC transfers, raising concerns about selling pressure.

• Sentiment and Technical Indicators: Market sentiment indicators dropped to “Extreme Fear” (index 24), and technical analysis broke through key support levels, triggering algorithmic trading and stop-loss orders, leading to short-term liquidity tightening.

3. Other Influencing Factors

• Exhaustion of Positive News: After favorable events like the approval of spot Bitcoin ETFs, funds lost new momentum and shifted to locking in gains.

• Regulatory and Industry Uncertainty: Global crypto regulations remain uncertain, with ongoing compliance issues and risk events (such as false information and platform risks) continuously impacting market confidence.

Important Reminder

Our country explicitly prohibits token issuance financing and trading activities related to virtual currencies. Such transactions are not protected by law, and #社区成长值抽奖十六期