Bitcoin Dumps to 2-Month Low as Geopolitical Tension Rises and Fed Pauses Rate Cuts: Weekly Crypto Recap

January is set to close with yet another highly eventful and volatile trading week, which, unfortunately for the bulls, drove BTC and many altcoins south to new local lows. Let’s rewind the clocks a week. Bitcoin tried to take down the $90,000 and even the $91,000 resistance levels last Friday to no avail, though. It spent the following weekend trading sideways around $89,000. However, it almost felt inevitable that it’s about to crumble in the next few days as US President Donald Trump issued a new tariff threat, this time to Canada, for 100% taxation. Needless to say, BTC indeed tanked on Sunday evening and Monday morning, dropping to a five-week low at the time of $86,000. However, the bulls were quick to pick up the pace and helped BTC recover over four grand in the following days. Consequently, the cryptocurrency exceeded $90,000 on Wednesday. The US Federal Reserve pivoted on its most recent monetary policy and paused the interest rate cuts on Wednesday evening. The event had no immediate effect on bitcoin, but that changed when geopolitical tensions spiked again, involving the US and its president, as expected. This time, the POTUS threatened Iran with potential strikes as the US moved several carriers closer to the Middle Eastern country. Perhaps reacting to both developments, BTC began to decline on Thursday evening. It slumped below $86,000 at first, but that was just the start. The bears kept the pressure on, and the cryptocurrency found itself dumping to $81,000 earlier today for the first time in over two months. Although it has rebounded to nearly $83,000 since then, it’s still over 7% down weekly. Similar losses are evident from ETH, XRP, SOL, DOGE, ADA, and BCH. In contrast, HYPE and CC have marked massive double-digit gains. Market Data Cryptocurrency Market Overview Weekly Jan 30. Source: QuantifyCrypto Market Cap: $2.9T | 24H Vol: $214B | BTC Dominance: 57% BTC: $82,700 (-7.2%) | ETH: $2,730 (-6.2%) | XRP: $1.76 (-7.3%) This Week’s Crypto Headl...