Notyourmatek

Jan 31 was absolutely brutal. Let me break down what crashed and why, then we'll look at what's coming with the US government in shutdown mode.
THE DAMAGE:
$BTC fell 8% to around $77K (lowest we've seen since April
$ETH down 13% to $2,362
$2.53 BILLION in crypto liquidations completely wiped out
Silver crashed 31.4% in ONE DAY (worst crash since 1980)
Gold dropped 11 to 12% from $5,600 all the way down to around $4,700
Nasdaq fell 1.5%, S&P 500 also down

WHY IT HAPPENED:
Trump just nominated Kevin Warsh to replace Jerome Powell as Fed Chair. Markets absolutely hated this news. The dollar strengthened hard, which crushed risk assets across the board. Plus there was an explosion at Iran's Bandar Abbas port (this port handles 20% of global oil shipping) and rising US Iran tensions. CME also raised margin requirements on silver futures which triggered forced liquidations and cascade selling. The US government entered a partial shutdown at 12:01am on Jan 31 after Congress missed the funding deadline. All of this created the perfect storm.

WHERE WE ARE RIGHT NOW (Feb 1):
Bitcoin is currently trading around 77K to 78K range. We bounced slightly from yesterday's lows but we're still in dangerous territory.
Ethereum sitting at $2,307 to $2,412, also showing some recovery from yesterday but still down massively.
The Fear and Greed Index is at 18 right now. That's officially fear territory. We're close to neutral but the market is definitely spooked.

KEY LEVELS TO WATCH:
Bitcoin needs to hold above $70K. This is the critical support level. If we can stay above this, we could see a bounce back to $85K or even $87K in the coming days.

If $70K breaks? Then we're looking at a drop to 60$K to $65K zone. That would be painful.
RSI is sitting around 25 which means we're massively oversold. When things get this oversold, we usually see a bounce eventually. The question is when.

COMING DAYS:
The House votes Monday on government funding. This could end the shutdown quickly OR drag out if things get political.
Kevin Warsh confirmation hearings are going to dominate headlines. Senate Republicans are already split on this.
ETF flows are absolutely KEY right now. We need to see if institutional money comes back in or if they keep pulling out.
Government shutdown means federal workers get furloughed and economic data releases could be delayed. More uncertainty equals more volatility.

THE REALITY:
Honestly? The deleveraging we just saw is actually healthy long term. We flushed out $2.53B in overleveraged positions. These people were gambling with borrowed money and got wrecked.
Bitcoin actually held better than traditional safe havens like silver. Silver dropped 31% while Bitcoin dropped 8%. Think about that.
This is peak fear meeting peak uncertainty. Smart money accumulates when everyone else is panicking. But don't try to catch falling knives. Wait for confirmation that we've bottomed before you deploy serious capital.
The shutdown adds noise but crypto has survived way worse than this. Watch those key levels, watch ETF flows, and watch the Senate drama with Warsh.

Don't be caught slacking!!!
#WhenWillBTCRebound #MarketCorrection