January 20 Work Commute Podcast — Market Adjustment Amid US Federal Reserve Hold Expectation, Large-Scale Short Position Liquidation

Source: TokenPost Original Title: January 20th Commuting Podcast — Market Correction Amid US Fed Hold Expectation, Large-Scale Short Liquidations Original Link: As the probability of the US Federal Reserve(Fed) holding interest rates in January rises to 95%, the cryptocurrency market showed signs of an overall correction. Bitcoin and major altcoins declined, but large-scale liquidations centered on short positions increased volatility.

Market Overview

As of the morning of January 20, 2026, Bitcoin traded at $93,079, down 2.37% from the previous day, indicating a correction. Ethereum also fell 3.79% to $3,218, falling below the $3,200 support level. Major altcoins such as Solana(-5.49%), Dogecoin(-5.28%), and Cardano(-5.53%) also declined over 5%, reflecting a broad market weakness.

The total market capitalization of cryptocurrencies reached $3.15 trillion, with Bitcoin’s dominance slightly rising to 59.07%, while Ethereum’s share decreased to 12.34%.

The 24-hour trading volume across all cryptocurrencies was $122.3 billion. DeFi trading volume increased by 59.35% to $14.9 billion(, stablecoin trading volume rose by 107.66% to $120.6 billion), and derivatives trading volume surged by 88.78% to $998.3 billion(, all indicating a significant increase. This is interpreted as traders focusing on short-term price fluctuations.

Over $500 Million in Leverage Positions Liquidated

In the past 24 hours, approximately $520 million worth of leveraged positions were liquidated in the cryptocurrency market. Among these, short positions accounted for 66.99%, indicating concentrated losses among investors betting on a decline.

Liquidations were prominent across major exchanges, with some exchanges reporting 100% of the liquidated volume from short positions.

Bitcoin saw the largest liquidation at $233.77 million, followed by Ethereum) at $131.77 million(, Solana) at $60.56 million(, and Ripple) at $42.44 million(. XRP’s price rose to $2.01, and within four hours, short liquidations alone reached $1.63 million.

US Fed Hold Expectation Prevails

According to CME FedWatch, the probability of the US Federal Reserve holding interest rates steady in the January meeting is 95%. The chance of a 25 basis point cut is only 5%, and the cumulative probability of a 25 basis point cut by March is 20.7%.

The Kiel Institute for the World Economy in Germany analyzed that about 96% of tariffs imposed by the US have been passed on to US consumers and importers, highlighting a factor contributing to global economic burdens.

Key Statements and Policy Trends

Tim Draper predicts that Bitcoin could reach $10 million in the long term and expressed a critical view of the fiat currency system. The Bermuda government is working with Coinbase and Circle to build a fully on-chain economy, and China has officially mentioned the need to legislate new technologies, including virtual assets.