#加密市场观察 One day, $6.5 trillion evaporates! A global sell-off wave emerges! Why did the Wosh nomination cause a bloodbath in the crypto circle and a flash crash in precious metals?

After U.S. President Trump announced the nomination of Kevin Wosh as the next Federal Reserve Chair, coupled with the impact of Middle East geopolitical tensions, the global cryptocurrency market continued to be under pressure, with Bitcoin and Ethereum experiencing significant drops over the weekend.
According to Securities Times, in the past 24 hours, the crypto world experienced a "bloodbath." Bitcoin plunged sharply, with intraday drops exceeding 7%, reaching a low of $76,000; the second-largest cryptocurrency, Ethereum, fell over 11%, touching a low of $2,256. Data from coinglass shows that in the last 24 hours, over $2.5 billion in crypto contracts were liquidated across the network, involving 420,000 traders, with more than 90% of these liquidations being long positions.
Brian Jacobsen, Chief Economist at U.S. wealth management firm, believes that in the coming days, we may see more crypto sell-offs. Besides cryptocurrencies, previously soaring precious metals including gold and silver also faced heavy selling after Trump announced Wosh's nomination, leading to a sharp price decline.
Giuseppe Cicolomascoro, an Italian economic investigative journalist focusing on financial and crypto news, wrote on the 30th that the global financial markets are experiencing a synchronized and intense "sell-off." Statistics show that global stock markets, precious metals, and cryptocurrencies have all fallen, with "the total market value of global stocks, precious metals, and digital assets evaporating by over $6.5 trillion in one day." On February 2nd, gold and silver opened lower collectively. As of 7:30, spot gold fell 3.61%, to $4,718 per ounce; spot silver's decline widened again, touching a low of $79 per ounce, with an intraday drop of nearly 8%.
Last Friday, precious metals experienced a historic plunge.

"Just survive" – cryptocurrencies face uncertainty
According to reports, Bitcoin, the world's largest cryptocurrency, once dropped to $76,000, down about 40% from its peak in 2025. It is worth noting that unlike the decline last October, this Bitcoin crash was not caused by a clear trigger or systemic shock, but by weakening demand, thin liquidity, and decoupling from broader markets. Previously, Bitcoin failed to respond substantively to geopolitical tensions, a weakening dollar, or rising safe-haven assets. Even after recent sharp fluctuations in gold and silver prices, Bitcoin did not attract capital inflows. In other words, this sell-off was not driven by panic but by a lack of buyers, momentum, and confidence.
Analysts summarized that Bitcoin is suffering heavy blows in three aspects: price, (market) correlation, and confidence. Meanwhile, after Wosh was nominated as the next Fed Chair, markets also worry that he might tighten liquidity in the financial system, putting pressure on the crypto market.
It is reported that Federal Reserve decisions are crucial for the crypto market because cryptocurrencies often exhibit the so-called "risk appetite" characteristics. When interest rates are high, safer assets like U.S. Treasuries become more attractive, diverting funds from more volatile assets like cryptocurrencies. Conversely, lower interest rates increase liquidity in the financial system and encourage investors to seek higher-risk investments. Additionally, a strengthening dollar (usually associated with the Fed tightening monetary policy) also tends to pressure Bitcoin prices.
Shadi El Damati, CEO and co-founder of Holonym, pointed out that there is a widespread belief that Wosh is more hawkish than the current Fed Chair Powell, who has previously criticized quantitative easing and the Fed's balance sheet expansion. "This raises concerns that if inflation rises again, he might take more aggressive measures on interest rates," Damati said. For cryptocurrencies, the biggest issue now is "uncertainty." Richard Hodges, founder of Ferro BTC volatility fund, also believes that the Bitcoin market faces capital competition. Hodges said he has warned some large Bitcoin holders to be patient, "I told them clearly, don't expect to see Bitcoin hit new highs in the next 1,000 days." He explained that the recovery of AI-related stocks and precious metals markets has attracted much attention, "Bitcoin seems to be old news from three years ago."
For ordinary investors, the current market is a "mess." Jannaro Salem, a 32-year-old car salesman from Chicago, said that everyone's mentality now is "just survive." Salem said he has invested a total of $200,000, with 40% allocated to cryptocurrencies, "I am 100% long-term bullish on Bitcoin. But when everyone gives up, persistence becomes even harder."

Are the "flash crashes" in precious metals a necessary price correction?
According to reports, when Trump nominated Wosh as Fed Chair, the dollar was boosted, triggering a comprehensive sell-off in precious metals on January 30. The rising gold and silver prices also experienced a sharp plunge on the same day, with gold futures recording the largest single-day dollar decline ever. Silver prices plummeted 31%, marking the largest decline since March 1980. It is reported that a recent unstoppable rally pushed gold and silver prices to historic highs, with investors worried about high inflation and rushing into precious metals, leading to concerns that global investors are losing confidence in traditional currencies like the dollar. However, this rally finally fizzled out on Thursday evening.
After Trump confirmed Wosh's nomination, the dollar hit its strongest single-day performance in months. Subsequently, the rapid decline in precious metals markets from central banks, underground vaults, to Wall Street trading desks caught investors off guard.
Some analysts believe that although Wosh aligns with Trump in supporting rate cuts, he has historically been more concerned about high inflation than slowing growth, which alleviates Wall Street's fears that the Fed might succumb to Trump's pressure to lower rates. Analysts see the January 30 price correction as a much-needed reset after a dizzying rally. They explain that the previous surge increased costs for industrial users like solar panel manufacturers and auto parts makers. Some analysts also believe that quick-money traders taking profits at the end of the month or hedging against sudden price drops may have contributed to the sell-off.

HSBC(Chief Multi-Asset Strategist Max Kettner frankly said: "Metals—honestly, I don't understand." Kettner looked at the recent surge in gold prices and asked: "Gold liquidity is insufficient, yet prices keep rising. Why?"