**Market Brief: Crypto Liquidity Crunch & Tech Correction** **Friday, January 30, 2026** Bitcoin has extended its steep decline, plummeting to a two-month low of **$81,311** in early trading. The leading cryptocurrency has now shed approximately **30%** of its value since hitting record highs in October 2025. **Market Drivers** * **Fed Chair Anxiety:** Risk assets are reeling from intensifying speculation that President Trump will nominate **Kevin Warsh** as the next Federal Reserve Chair. Markets are pricing in Warsh as a hawkish pick, sparking fears of tighter monetary policy, reduced balance sheets, and a liquidity drain that traditionally punishes speculative assets. * **AI Sector Tremors:** A broader "risk-off" wave is being fueled by a tech equity selloff. High-profile jitters around Artificial Intelligence spending—highlighted by **Microsoft's** massive market cap loss and a **2.5%** intraday drop in the Nasdaq—are spilling over into digital markets. Investors are questioning the sustainability of the AI boom, deepening the correlation between tech stocks and crypto. **Key Figures** * **Bitcoin (BTC):** Trading near **$82,100**, down roughly **6%** in the last 24 hours. * **Ethereum (ETH):** Slid sharply to **$2,730**, recording a nearly **7%** daily loss. * **Liquidations:** The volatility triggered a massive flush-out, with over **$1.7 billion** in leveraged positions liquidated across the board. * **Sentiment:** The Crypto Fear & Greed Index has collapsed to **16**, signaling "Extreme Fear" among traders. **Outlook** Volatility remains elevated as **$8.8 billion** in monthly options expire today. Traders are actively deleveraging, moving to the sidelines while awaiting official confirmation on the Fed leadership and stabilization in the tech sector.