A Violent Reset for Risk Assets

DAILY MARKET OVERVIEW

The 48-Hour Wipeout

👋 Hey, Crypto Enthusiasts! Risk assets may have become overheated. Let’s explore why.

Over the past few days, markets experienced a sharp liquidation cascade across the board.

🔻 Gold dropped roughly 21%, silver fell 40%, and Bitcoin broke below $80K for the first time since April 2025.

So what caused the selloff ❓️ 

• The “Warsh” Effect: President Trump nominated Kevin Warsh to lead the Federal Reserve. Markets view him as hawkish, favoring higher rates and a stronger dollar, which pressured gold and silver.

• Profit Taking: Gold was trading near $5,600 and silver above $120. Prices had run far, fast. When the Warsh news hit, traders rushed to lock in profits, triggering a classic stampede to the exits.

• Margin Calls: As prices fell rapidly, exchanges such as the CME raised margin requirements. Many leveraged traders were unable to post additional collateral and were forced to liquidate positions immediately. This selling pressure fed on itself and intensified the crash.

• Fear Premium Unwind: Much of the recent rally in precious metals was driven by political uncertainty and systemic fear. The appointment of a traditional central banker signaled stability rather than chaos. As that fear premium evaporated, investors no longer felt the same urgency to hide in gold.

In short: A stronger dollar, profit taking, and forced liquidations wiped out trillions in value in under 48 hours.

Bitcoin briefly dropped to $74.5K, well below MicroStrategy’s average BTC cost of ~$76K. We see this area as a temporary hold zone with potential for a short-term bounce.

However, bottom formation may take a lot more time as stablecoin market cap continues to decline, BTC balances on exchanges have been rising, and ETF outflows continue to exceed inflows.

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SOCIAL SENTIMENT

The Hyperunit Whale Just Lost $250 Million

The most infamous trader in crypto just blew up. The "Hyperunit whale" who made $200 million shorting Bitcoin and Ether minutes before Trump's October tariff announcement lost it all. Their Hyperliquid account now holds $58.

After perfectly timing the October crash with billion-dollar shorts, the whale pivoted to long positions. By mid-January, they'd built an ETH position worth over $730 million. As Ether collapsed to $2,400 this week, the leveraged position got liquidated. $220+ million gone.

The whale is allegedly linked to Garrett Jin, former CEO of BitForex. The October timing sparked insider trading speculation: opening massive shorts minutes before a market-crashing announcement. The crash triggered $18 billion in liquidations industry-wide.

The lesson is simple: Leverage kills, even when you're brilliant. The whale nailed the October trade perfectly, then gave it all back trying to time the bottom in a bear market.

Don't be the next whale with $58 left. Sit in cash and wait for the market to settle.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Ripple Secures Full EU EMI License in Luxembourg
Ripple received final approval for an EU electronic money license, strengthening its regulated payments footprint across Europe following recent UK authorization.

Polymarket Expands to Solana via Jupiter Integration
Polymarket brought its prediction markets to Solana through a Jupiter DEX integration, giving users in-app access to event-based trading.

Tether Posts Over $10B Profit as USDT Supply Hits Record
Tether reported more than $10 billion in net profit for 2025, with excess reserves growing as USDT circulation climbed past $186 billion.

UAE-Linked Investment in Trump Crypto Firm Sparks Ethics Concerns
A reported UAE stake in a Trump-linked crypto venture has raised corruption and national security questions following a US policy shift on AI chips.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Benjamin Cowen – Bitcoin Cliff Dwellers (02.02.2026 Summary)

In this livestream, Benjamin Cowen says Bitcoin is firmly in a bear market and is sitting at a critical level where downside risk still matters more than upside potential.

Key points

• Cowen’s main message is simple: bear markets are about survival, not profits. Avoid panic trades and focus on limiting losses, the upside comes later.

• Bitcoin is trading around $75,000, a level he sees as important support. A short-term bounce is possible, but he does not see this as confirmation of a bottom.

• Based on past cycles, he thinks Bitcoin may still need a deeper reset, potentially involving a ~50% drawdown from the highs, which would place price closer to long-term historical support.

• He highlights that Bitcoin has gone unusually long without a full 50% drop, which makes him think more downside remains likely before the bear market truly ends.

• Ethereum has already revisited a key level near $2,100, which he views as typical behavior during broader market weakness.

• On altcoins, Cowen stays bearish. He argues most have been underperforming Bitcoin for years, and without strong retail hype, he does not expect a meaningful alt season.

• From a macro perspective, he warns that crypto can fall even if stocks hold up, and says liquidity conditions, not narratives, will decide when the market finally turns.

Takeaway
Cowen remains cautious. While Bitcoin may see brief bounces, he believes the bear market is not over yet and that patience and risk control matter more than trying to catch the bottom.

CoinBureau – Fidelity Just EXPOSED Crypto's Biggest Secret (02.02.2026 Summary)

In this video, Coin Bureau summarizes a new Fidelity Digital Assets report on what could shape crypto in 2026, arguing the space is maturing, but risks are still very real.

Key points

• Fidelity says crypto is evolving into a full asset class, with ETFs, derivatives, custody, lending, and regulated markets making it look more like traditional finance.

• Bitcoin’s growing institutional role boosts legitimacy and adoption, but also moves it further away from its original decentralised ideals.

• Institutions want clearer value capture. This is driving token buybacks, where protocols use revenue to support their tokens instead of relying on speculation.

• This shift, often called tokenomics 2.0, could split tokens into two groups: those with strong economic rights and those with limited institutional appeal.

• Bitcoin treasury companies are expanding quickly, now holding nearly 5% of total BTC supply, led by firms whose main strategy is accumulating Bitcoin.

• Bitcoin mining is changing as large miners pivot toward AI infrastructure, which often offers better returns than mining alone.

• On the macro side, the end of quantitative tightening and rising global liquidity could support crypto, but inflation, a strong dollar, and geopolitical risks remain.

• Fidelity also highlights Bitcoin’s growing digital gold narrative, especially after gold’s strong performance in 2025 and early signs of institutional adoption.

Takeaway
Fidelity’s outlook is cautious but constructive. Crypto is becoming more structured and institutional, which could set the stage for growth in 2026, but only if macro conditions cooperate and risk is managed.

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