The past week in the cryptocurrency market was distinguished by substantial activity amid diverse forces shaping the sector. Investors witnessed significant price swings in leading digital currencies Bitcoin and Ethereum, while public discourse around the United States' strategic role in the crypto domain intensified.
Among the notable commentary, economist Peter Schiff voiced doubts regarding President Donald Trump's objective to establish the United States as the "world capital" of Bitcoin. Schiff contended that China's stance toward Bitcoin remains indifferent and that the notion of the U.S. needing to outpace China in cryptocurrency and blockchain advancements may be misguided. This viewpoint calls into question the practical efficacy of the political competition framed around crypto dominance.
Bitcoin's price dynamics underscored the volatility characteristic of recent trading sessions. The cryptocurrency declined sharply by approximately 8% within 24 hours, retreating to a price near $65,000. This drop coincided with a marked shift in market sentiment, with the crypto sentiment index descending to a level categorized as Extreme Fear (a numerical value of 5). Liquidation events were considerable, totaling nearly $2.60 billion over the preceding day. Exchange-Traded Funds (ETFs) linked to Bitcoin also experienced an outflow of $434.2 million on Thursday, and Ethereum-linked ETFs saw net withdrawals amounting to $80.8 million within the same timeframe.
Ethereum encountered even more pronounced losses throughout the week, with a total decrease around 30%, pushing its price below the psychologically significant $2,000 threshold. Technical indicators and blockchain analytics revealed deteriorating signals; for instance, CryptoQuant data reflected a 14-day Simple Moving Average (SMA) of Ethereum transfer counts reaching 1.17 million on January 29. Historically, reaching such transfer volumes has been a harbinger of major market turning points, suggesting heightened attention to Ethereum's trajectory.
Political and social media narratives also intersected with these market movements. Notably, a renewed exchange unfolded on social networks involving podcaster Ashley DCan and Eric Trump. The disagreement originated in mid-2025 when Ashley criticized Eric Trump's recommendation to purchase Ethereum at approximately $2,900. Since then, Ethereum's price declined significantly, with values hitting lows near $1,472. Ashley accused Eric Trump of effectively positioning retail investors as "exit liquidity," implying that his endorsement may have misled casual traders amid the downturn.
Conversely, altcoins such as Bitcoin Cash (BCH) experienced uplift alongside Bitcoin's rebound from its late-Thursday weakness. Bitcoin's rally, equating to an approximate 12% increase within a day, saw its price climb back to the $70,000 milestone. This recovery fostered a risk-on sentiment in crypto markets that bolstered higher-beta assets like BCH, reflecting a broader appetite for risk amid renewed investor confidence.
Key Points:
- Peter Schiff expressed skepticism toward President Trump's vision for the U.S. to become the leading Bitcoin hub, citing China's indifferent approach.
- Bitcoin saw a rapid decline of about 8% to $65,000, accompanied by $2.60 billion in liquidations and reduced ETF inflows.
- Ethereum dropped approximately 30%, falling below $2,000, with technical signals suggesting critical market inflection points.
- Bitcoin Cash surged in correlation with Bitcoin's recovery, reflecting a resurgence in risk appetite among crypto investors.
Risks and Uncertainties:
- The veracity of politicized assertions regarding U.S.-China competition in cryptocurrency remains debatable and may influence market perceptions.
- Significant liquidations in Bitcoin and Ethereum indicate heightened market volatility and potential for further rapid price movements.
- Ethereum's deteriorating technical and on-chain indicators could presage additional downside or broader market shifts.
- Social media disputes involving prominent figures could affect retail investor sentiment, especially in a market susceptible to hype cycles.