Crypto Market Loses ~$100B as Political Tensions Shake Traders
Welcome to the Daily for January 27, 2026. ☕️
Hello Cointribe! 🚀
Cheers 👋 It’s Tuesday, January 27, 2026—Missed what moved the markets in the last 24 hours? We’ve got you covered.
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡 Weather:
☀️ Sunny
24h crypto recap! ⏱
📉 Bitcoin ETF Sees $1.72B Withdrawn Amid Rising Fear
Over five days, spot Bitcoin ETFs lost $1.72 billion as extreme fear grips the market. The Crypto Fear & Greed Index highlights persistent distrust, while retail investors withdraw in favor of traditional assets. Analysts note this is more than a technical pullback, raising questions about confidence in Bitcoin products.
👉 Read the article
⏸️ Dollar Weakens While Bitcoin Struggles to Hold Gains
Bitcoin wobbles amid a tense global economy as the dollar dips. Its brief rebound to $88,000 is fragile, with resistance between $89,000 and $91,000. Analysts warn a new bottom may form under $86,000. The inverse correlation between dollar weakness and BTC gains intrigues investors, but macroeconomic signals suggest renewed volatility for the leading cryptocurrency.
👉 Read the article
🤖 AI Swarms Could Evade Detection in Online Influence Campaigns
A new study warns that AI swarms can mimic human behavior, making coordinated online influence campaigns harder to detect. Unlike botnets, these autonomous systems adapt over time, sustain subtle narratives, and operate with minimal oversight. Experts highlight risks for public debate, governance, and identity verification, urging improved detection methods and clearer labeling of automated activities.
👉 Read the article
🧠 CZ Warns AI Job Disruption, Sees Crypto as Financial Shield
Binance founder Changpeng Zhao warns that AI adoption could eliminate millions of jobs worldwide, reshaping labor markets rapidly. He suggests cryptocurrencies may offer financial protection for those who prepare early, citing easing regulations, institutional demand, and Bitcoin’s fixed supply. Zhao predicts strong crypto expansion in 2026, with Bitcoin potentially reaching $200,000.
👉 Read the article
🛑 McGlone Urges Caution for Bitcoin Amid Deflation Risks in 2026
Bitcoin trades near $87,000 in a quiet market phase. Bloomberg strategist Mike McGlone warns of a potential post-inflation deflationary period in 2026, altering Bitcoin’s risk profile. He advises defensive strategies, suggesting U.S. Treasuries over aggressive BTC positions. Downside scenarios include a drop to $50,000 or as low as $10,000 under severe shocks.
👉 Read the article
💧 Crypto of the Day: Hyperliquid (HYPE)
📈 Hyperliquid (HYPE) Breaks Out: Strong Momentum in Play
Today’s spotlight token is Hyperliquid (HYPE), which has surged over 23% in the past 24 hours and around 19% in the past week. The token’s open interest has reached an all-time high of $790 million, showing growing trader activity and investor participation. Adding to the excitement, HYPE is currently one of the top trending tokens on CoinGecko, reflecting heightened activity around the token.
📊 Technical Indicators Signal Strong Uptrend
HYPE recently broke above a long-term descending trendline, suggesting the downtrend may be reversing. The Bollinger Bands are expanding, with the price now near the upper band at $28, indicating strong upward momentum and increased volatility. The middle band at $24.12 now acts as immediate support, while the lower band at $20.76 could provide a fallback if a pullback occurs. The RSI sits around 60, showing positive momentum while remaining below overbought levels, leaving room for further upside before sellers step in.
🧭 Price Outlook and Key Levels
In the short term, HYPE could target $30–32, while sustained buying pressure may push it toward $35–36, near previous resistance. On the downside, support around $24–25 could hold in case of a retracement.
With high open interest, a trendline breakout, and trending status on CoinGecko, HYPE is drawing attention as one of the most closely watched tokens in the market right now.
📊 Real-time Performance (CMC)
💵 Current Price: $27.52
📉 24h Change: 24.42%
💰 Market Capitalization: $8.31B
🏅 CoinMarketCap Rank: #15
🪙 Circulating Supply: 302.07M HYPE
📊 Trading Volume (24h): $493.46M
🚨 Crypto Market Loses ~$100B as Political Tensions Shake Traders
The global crypto market experienced a massive sell-off, wiping out nearly $100 billion in market value in just a few hours. Investors panicked as political uncertainty in the United States intensified. The sudden drop highlighted how sensitive cryptocurrencies have become to global news and political developments, with even top assets like Bitcoin and Ethereum feeling the pressure.
💣 US Political Deadlock Sparks Market Fear
The main trigger behind the sell-off was a political stalemate in Washington over federal budget approvals, including disputes over funding the Department of Homeland Security. Traders feared that a government shutdown could happen soon, sending shockwaves through the market. As a result, Bitcoin slid roughly 3.4%, while Ethereum fell more than 5%, marking one of the sharpest single-session drops in recent weeks.
🌐 Geopolitical and Trade Concerns Amplify Anxiety
The downturn wasn’t limited to domestic politics. Analysts noted that tensions over tariffs and international conflicts added to the uncertainty. Crypto assets are increasingly behaving like risk-sensitive financial instruments, reacting not only to on-chain activity but also to global geopolitical events. This shift signals a maturing market, but also one that is vulnerable to external shocks.
📈 Safe-Haven Assets Rally as Crypto Slides
As digital assets faltered, traditional safe-haven investments like gold reached record highs, demonstrating that investors still turn to stability when political storms hit. Bitcoin’s narrative as “digital gold” was put to the test, revealing that even high-profile cryptocurrencies may struggle to act as reliable hedges in times of global uncertainty.
⚡ ETF Outflows and Liquidations Worsen the Decline
The sell-off was intensified by massive withdrawals from Bitcoin ETFs, which drained liquidity from the market. Additionally, hundreds of millions in leveraged crypto positions were liquidated, amplifying the downward momentum. Experts say that these factors combined to create a perfect storm, accelerating the drop far beyond what political news alone might have caused.
🧠 Market Lessons and Future Outlook
Analysts are urging investors to monitor political and global developments closely, as crypto’s sensitivity to such events is becoming increasingly clear. The current drop shows that while crypto markets are growing in maturity, they are still highly reactive to news and sentiment, making risk management and diversified strategies more important than ever.
📌 Key Points to Note
🛑 Nearly $100 billion wiped from the crypto market in just a few hours due to US political uncertainty.
📉 Bitcoin fell ~3.4%, Ethereum over 5%, signaling heightened sensitivity to political risk.
🏛️ Government shutdown fears were the main catalyst for the sell-off.
🌍 Global political and trade tensions also amplified market anxiety.
🪙 Gold and other safe-haven assets surged, questioning Bitcoin’s role as a hedge.
💹 ETF outflows and leveraged liquidations worsened losses, creating a “perfect storm.”
🧠 Investors are reminded to follow political and macro developments closely, as crypto remains highly reactive to sentiment.
