Gate News Bot Message, January 27th, according to CoinMarketCap data, at press time, BTC (Bitcoin) is trading at $88,141.64, up 0.98% in the past 24 hours, with a high of $91,100.25 and a low of $86,003.71. The 24-hour trading volume reached $43.504 billion. The current market capitalization is approximately $1.76 trillion, an increase of $17.082 billion compared to yesterday.
Bitcoin is an innovative payment network and a new form of currency. Bitcoin operates on peer-to-peer technology, without the need for a central management organization or bank. Transaction management and Bitcoin issuance are collectively handled by the network. Bitcoin is open-source, with its design publicly available, and no individual or institution owns or controls Bitcoin. Everyone can participate. Through its many unique features, Bitcoin supports fast peer-to-peer transactions, global payments, and low transaction fees.
Important recent news about BTC:
1️⃣ Macro liquidity weakening and policy uncertainty exert pressure
The US Dollar Index DXY fell below 97, hitting a four-month low. Expectations of joint intervention by the US and Japan to stabilize the yen exchange rate have increased, directly causing the dollar to weaken. Meanwhile, the risk of a US government shutdown has surged to about 75-78%, with political deadlock spreading risk aversion sentiment. These macro shocks have directly suppressed risk assets. Over the past 24 hours, total network contract liquidations reached $6.91 billion, with Bitcoin liquidations totaling $1.99 billion, making longs the main losers. Market attention is focused on the Federal Reserve’s rate decision on January 28, with Powell’s policy statements likely to be a key catalyst for Bitcoin’s short-term direction.
2️⃣ Diverging institutional fund flows and clear signs of profit-taking
Last week, the net weekly purchase of Bitcoin by global listed companies plummeted 86.5% to $290 million, with Strategy’s weekly buy-in dropping 87.7% to $264 million, adding only 2,932 BTC. Meanwhile, on-chain data shows several large holders gradually reducing their long positions in favor of spot holdings. An insider whale from BTC OG reduced their holdings by 427.28 BTC, incurring a loss of $1.612 million. Currently, long positions are floating at a loss of $47.97 million. Despite institutional investors seeing undervaluation opportunities at current prices, short-term profit and loss pressures have caused buying momentum to decline significantly.
3️⃣ Technical breakdown and decreased risk tolerance
Bitcoin has broken below the upward channel maintained for several months, signaling an important technical breakdown. Realized losses have reached $4.5 billion, a three-year high, reflecting a significant decline in market investors’ risk tolerance. If BTC continues to fall below $83,522, the cumulative liquidation of longs on major centralized exchanges could reach $1.645 billion, further risking passive selling. Additionally, Bitcoin faces the possibility of experiencing its first four consecutive months of decline since 2018, a scenario often associated with deeper corrections in history.
This news is not investment advice. Investors should be aware of market volatility risks.
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