Macro Fears Trigger $550M Crypto Liquidations – What’s Really Going On?

Group 1 - Crypto markets experienced significant liquidations exceeding $550 million, primarily affecting Bitcoin and Ethereum, as macroeconomic uncertainties intensified [1][7] - Bitcoin briefly fell to the $86,000 level, while Ethereum declined towards $2,785, indicating a bearish trend in the digital asset space [1] - Traditional safe havens like gold and silver saw an increase in demand as investors shifted towards lower-risk assets amid the crypto market pullback [2] Group 2 - Key macro developments influencing market sentiment include potential 100% tariffs on Canadian imports, fears of a US government shutdown, and uncertainty regarding US-Japan currency coordination [3] - The USD/JPY currency pair remains a focal point, with the New York Fed's recent "rate check" indicating sensitivity to yen depreciation, which could trigger intervention if the yen weakens further [4] - Political tensions in the US, particularly regarding unresolved fiscal negotiations, are contributing to market volatility, with a 75% chance of a government shutdown by January 31, which could negatively impact crypto prices [5][6]