BiyaPay Analyst: Rising hawkish expectations from the Federal Reserve trigger a sharp drop in risk appetite and a flash crash in crypto markets.

On Monday, January 19th, the cryptocurrency market experienced a sudden and collective pullback in early Asian trading. Bitcoin, after surging to $97,000 last week, quickly retreated, briefly dipping below $92,000; Ethereum fell below $3,200, and Solana dropped below the $140 mark. Coinglass data shows that approximately $593 million in positions were liquidated across the network in the past four hours, with long positions accounting for nearly 90%, indicating significant pressure on market sentiment.

Analysts believe that the uncertainty surrounding Trump has once again become a trigger for this round of "Black Monday." On the one hand, expectations are rising that the new Federal Reserve chairman will shift from a dovish to a hawkish stance; on the other hand, the Greenland dispute and tariff frictions between the US and Europe have reignited, coupled with the CLARITY bill's obstruction in the Senate, leading to a rapid cooling of short-term risk appetite.

BiyaPay analysts point out that the current situation is more like an emotional pullback triggered by concentrated profit-taking at high levels, rather than a trend reversal. In a highly volatile environment, investors can use USDT through BiyaPay to flexibly participate in trading US stocks, Hong Kong stocks, options, and cryptocurrencies, dynamically adjusting their positions across different assets to cope with the impact of policy and macroeconomic uncertainties.