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January 31, 2026

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Top Reasons Why Bitcoin Price Could Retest $75,000 in Early February

Forex 3 Mins Read

The post Top Reasons Why Bitcoin Price Could Retest $75,000 in Early February appeared first on Coinpedia Fintech News

Bitcoin price has entered a cautious phase after failing to hold its recent recovery, with price action gradually tilting back toward the downside. The pullback has been controlled rather than panic-driven, but signs of weakening demand are becoming harder to ignore. Spot buying remains limited, leverage continues to unwind, and sellers are still active beneath the surface. Together, these signals raise the likelihood of Bitcoin revisiting lower support levels, with the $75,000 region now emerging as a key area to watch as early February approaches.

Open Interest: Leverage Steps Back, Not In

Open interest across exchanges has declined sharply, signaling broad deleveraging rather than aggressive dip-buying. This drop suggests traders are closing positions instead of building fresh longs to defend current levels. Importantly, open interest has struggled to recover alongside price, reinforcing the idea that conviction remains weak. 

When leverage exits the market without being replaced, the price often drifts toward the next support zone. This behavior aligns with the broader correction seen on the price chart and adds weight to the bearish near-term outlook.

Exchange Reserves: Spot Supply Gradually Increases

Exchange reserve data shows Bitcoin balances ticking higher after a prolonged period of decline. While this does not point to panic selling, it does indicate that more BTC is becoming available to sell. 

In past cycles, rising reserves during a corrective phase have often coincided with extended pullbacks rather than quick reversals. With spot supply increasing and no clear signs of aggressive accumulation, downside pressure remains a real risk if demand does not improve.

Spot Taker CVD: Sellers Still Have the Upper Hand

Spot taker CVD reinforces this cautious view. Over the past several months, sell-side market orders have dominated, and while selling pressure has eased slightly, buyers have yet to take clear control. 

The lack of a strong bullish shift in CVD suggests that recent stabilization is more about sellers slowing down than buyers stepping up. Without sustained spot buying, any bounce is likely to remain corrective rather than trend-changing.

Is Bitcoin (BTC) Price Heading to $75,000?

Ever since the BTC price dropped below $100,000, it has slipped into extreme bearish conditions. It broke down below the rising wedge, which has been the start of a strong descending trend. 

After breaking the wedge, the BTC price has also completed a small upside correction that resulted in a fresh descending trend. Meanwhile, the weekly RSI is also heading towards the lower threshold, indicating Bitcoin is yet to mark the bottom. Considering the chart structure, the next strong support is just below $75,000, at around $74,500, which could be the range where buyers may take control. 

Conclusion: What Comes Next for Bitcoin?

Taken together, price structure, derivatives positioning, and spot market behavior all lean toward further downside exploration. Bitcoin does not appear to be in a capitulation phase, but it also lacks the conditions typically seen at durable bottoms. Unless spot demand strengthens and leverage begins to rebuild alongside rising prices, Bitcoin may continue drifting lower toward the $74,000–$76,000 support zone. A bounce from there is possible, but for now, the data supports caution rather than optimism.

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Stocks

What Kevin Warsh’s Fed nomination could mean for stocks, crypto, and risk assets

Stocks 3 Mins Read

The financial world shifted on its axis this Friday as President Donald Trump officially nominated Kevin Warsh to succeed Jerome Powell as Chair of the Federal Reserve.

This appointment is far from a mere administrative baton-pass; it represents a fundamental pivot in the world’s most powerful economic engine.

Warsh, a former Fed governor and Wall Street veteran, enters the fray at a time when the central bank’s independence and its approach to liquidity are under intense scrutiny.

For financial markets, the “Warsh Era” signals a departure from the status quo, promising a cocktail of aggressive rate-cut advocacy mixed with a disciplined, “tough love” approach to the Fed’s balance sheet that could fundamentally reshape the performance of risk assets in 2026.

Kevin Warsh – a double-edged sword for risk assets

The immediate market reaction to the Warsh news was a sharp “risk-off” move, with stock prices declining and Bitcoin facing selling pressure as well.

This stems from Warsh’s reputation as a “reformed hawk”.

While he’s aligned with Trump’s demand for lower interest rates to spur growth – a move that typically benefits stocks and cryptocurrencies – he simultaneously advocates for a significantly smaller Fed balance sheet.

This creates a paradox for risk assets: while lower nominal rates are a tailwind, a reduction in global dollar liquidity is a massive headwind.

As Stephen Brown of Capital Economics noted, Warsh is a “relatively safe choice,” but his conviction that “the Fed should operate with a much smaller balance sheet” could put persistent upward pressure on long-term bond yields, making non-yielding assets like stocks and crypto less attractive.

Valuation over liquidity: the death of the “Fed Put”

For years, equity markets have leaned on the “Fed Put” – the belief that the central bank would reliably inject liquidity at the first sign of trouble.

Warsh, however, is a vocal critic of the Fed’s tendency to “pamper” markets. His “valuation-over-liquidity” framework means risk assets like high-growth tech and Bitcoin can no longer rely on central bank largesse to mask weak fundamentals.

In a recent interview, Warsh argued that the Fed’s “bloated balance sheet” should be reduced to “support households and small businesses” rather than just the largest financial firms.

This shift forces a Darwinian transition: companies with real earnings will thrive under lower rates, but “zombie” stocks and speculative bubbles that survived solely on excess market liquidity may face a harsh reckoning as the Fed’s safety net is pulled away.

How to play risk assets amidst the new economic climate

Ultimately, Kevin Warsh views the Fed not as a “pampered prince” of the economy, but as a disciplined steward of the currency.

His belief that artificial intelligence will act as a “significant disinflationary force” suggests he may feel emboldened to cut rates without fearing an immediate inflationary spike, a scenario that could ignite a massive rally in small-cap stocks.

However, the cost of this growth will be the removal of the experimental stimulus measures that defined the last decade.

As we move toward May 2026, the transition from Powell’s “cautious guidance” to Warsh’s “structural reform” means the era of easy, liquidity-driven gains is likely over.

In this new landscape, the winners will be those who prioritize real productivity over the temporary highs of central bank cash injections.

The post What Kevin Warsh’s Fed nomination could mean for stocks, crypto, and risk assets appeared first on Invezz

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