Crypto markets logged more than $550 million in leveraged long liquidations during early Asian trading on Jan. 26, according to a Wu Blockchain market update.
QCP analysis notes that crypto assets traded in a narrow range over the weekend before coming under pressure in early Asian hours, triggering over $550 million in leveraged long liquidations. BTC briefly tested $86K before finding support, while Ethereum fell to the $2,785 area.…
— Wu Blockchain (@WuBlockchain) January 26, 2026
The update tied the move to a macro-driven de-risking cycle: U.S. tariff rhetoric, including talk of 100% tariffs on Canadian imports, rising concern about a partial U.S. government shutdown with funding expiring Jan. 30, and FX volatility after a “rate check” in USD/JPY that the New York Fed requested. It cited Polymarket odds near 75% for a shutdown by Jan. 31. Bitcoin briefly tested around $86,000 and Ether slid toward roughly $2,785 as USD/JPY cooled from above 160 to around 154, while gold and silver extended recent gains.
Derivatives signals also skewed more defensive. Wu Blockchain pointed to higher implied volatility and stronger put skew, with BTC option protection rolling from about $88,000 toward $85,000. Next catalysts to watch include Washington funding talks, a heavy tech earnings slate, and the Federal Reserve decision for any change in risk appetite.
Source: Wu Blockchain.
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