Crypto Market Dips as US Inflation Data and Fed Uncertainty Weigh on BTC, ETH

I. Crypto Market Overview

Key Takeaways

Macro Environment

US December PPI surged, shaking market confidence and delaying Fed rate cut hopes. Trump’s Fed chair nomination triggered volatility and capital rotation, impacting crypto sentiment. Germany’s stable CPI at 0% signals contained inflation, supporting risk-on appetite for digital assets.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with BTC down 0.76% to $82,202 and ETH falling 4.87% to $2,599.49, pressured by weak spot demand and macro headwinds. Altcoins were mixed; Canton (CC) surged 8.98%, Monero (XMR) rose 6.52% on privacy demand, while Arbitrum (ARB) dropped 5.52%. Hyperliquid (HYPE) was flat, and Solana (SOL) slid 2.78%.

Today's Outlook

No major token unlocks are scheduled today. Market focus remains on macroeconomic volatility and regulatory developments, with traders watching for spillover effects from recent US inflation data and global policy shifts.

Fear and Greed Index

28.00% Annual Percentile

28 Fear

Total Crypto Market Cap

$2.78T

0.95%

Total Market Trading Volume

$126.94B

33.67%

Altcoin Season Index

0.00%

Quarterly Percentile

26 / 100

Total Futures Market Open Interest

3.39B

6.81%

Futures

609.99B

0.95%

Perpetuals

II. Industry Updates

Macro-economic Policies

The US Treasury imposed sanctions on Iran-linked crypto exchanges, restricting their access to global financial systems. This action increases market uncertainty and may reduce cross-border crypto liquidity, impacting BTC and DeFi transaction volumes.

Gold and silver prices experienced sharp declines after Trump nominated Kevin Warsh as the next Federal Reserve Chair, easing concerns over Fed independence. The resulting volatility triggered capital rotation, influencing BTC as a risk asset and affecting overall crypto market sentiment.

Germany's Hesse region reported a month-on-month CPI of 0% for January, down from 0.1%. This signals stable inflation, which could support risk-on sentiment and potentially stabilize BTC and altcoin prices amid global macroeconomic uncertainty.

The US Bureau of Labor Statistics released December PPI data showing a significant surge, shaking market confidence and stalling expectations for imminent Fed rate cuts. This inflationary pressure may increase volatility in BTC and DeFi markets as traders reassess risk.

Cryptocurrency Regulatory Trends

The US Treasury sanctioned crypto exchanges linked to Iran for facilitating illicit finance, signaling stricter global enforcement and raising compliance risks for exchanges.

Hong Kong began issuing stablecoin licenses under a new regulatory framework, requiring issuers to maintain strong reserves and governance, boosting user protection and market trust.

The UK's FCA released a tougher regulatory framework for crypto firms, mandating stricter safeguarding, complaints handling, and UK legal entities for international firms, increasing compliance costs.

Ghana enacted the Virtual Asset Service Providers Act and launched a national crypto literacy initiative, aiming to enhance consumer protection and attract blockchain innovation.

Circle is leveraging regulatory compliance and institutional partnerships to strengthen its position in the digital dollar market, potentially increasing investor confidence in USDC.

Canton (CC): Canton surged 8.8% in the past 24 hours, reaching $0.1863 with a market cap of $43.7M, but no clear catalyst or major event was identified for this move.

Hyperliquid (HYPE): Hyperliquid rose 0.24% to $29.49 with $642.8M in 24h trading volume, driven by strong user growth and high on-chain perpetual trading activity on its custom Layer 1 blockchain.

Monero (XMR): Monero gained 6.26% in the last 24 hours, trading at $480.34 with $208.5M volume, supported by renewed demand for privacy coins and increased decentralized exchange activity.

Smart Money Movements

Crypto whale '0x9ee' was fully liquidated on ETH and XRP long positions, losing $61.38 million and erasing previous profits, resulting in a net loss of over $10.76 million.

A newly created wallet '0x9D2' sold $41.27 million in $HYPE tokens within three days, incurring a short-term loss of $3.72 million after initially purchasing for $44.99 million.

A whale converted $9.06 million in WETH to 109.61 WBTC at $82,494.79 each, rebalancing their portfolio after holding ETH for four years and previously gaining 6.45% on ETH.

U.S. Bitcoin spot ETFs saw a net outflow of $509 million on January 30, led by BlackRock's IBIT with $528.3 million outflow, while Ethereum spot ETFs recorded a $252.9 million net outflow.

A whale acquired 1,585 XAUT tokens worth $8.02 million USDT, bringing total holdings to 2,563.77 XAUT purchased for $13 million USDT at an average price of $5,069 per token.

Events to Watch

Feb 2 (Mon)

NFT Paris 2026 opens in France; Digital Assets Forum (DAF3) convenes in London, both spotlighting NFT and digital asset trends.

Feb 3 (Tue)

Reserve Bank of Australia (RBA) announces interest rate decision; markets expect a 25bp hike amid rising inflation and low unemployment.

Feb 5 (Thu)

Bank of England and European Central Bank hold monetary policy meetings; Magicblock BLOCK launches $10.5M infrastructure presale.

Feb 6 (Fri)

US January Non-Farm Payrolls, unemployment rate, and Average Hourly Earnings data released; Nova Fund $25M refund right for BERA expires.

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