The global financial markets saw sharp volatility on January 13, with Bitcoin suffering a sudden and steep decline, triggering massive liquidations across the crypto space. At the same time, the U.S. dollar index surged past the critical 110 mark, reflecting growing investor concerns over inflation and monetary policy shifts. This article explores the key drivers behind these market movements, analyzes expert forecasts, and unpacks implications for investors.
Bitcoin Tumbles: $4 Billion in Liquidations in 24 Hours
According to CoinGlass data, Bitcoin dropped over $4,500 per coin within just half a day, falling from near $96,000 to below $91,500. As of this report, Bitcoin was trading around $91,500 — a sharp reversal after briefly reclaiming the $100,000 milestone earlier in the week.
👉 Discover how market swings create opportunities for smart investors.
The downturn didn't spare other major cryptocurrencies. Ethereum slipped more than 4%, while Dogecoin declined nearly 5%. The broader sell-off triggered approximately 170,000 trader positions to be liquidated, amounting to nearly $4 billion in total losses within 24 hours.
Despite this recent correction, Bitcoin’s performance in 2024 remains impressive — up over 120% year-to-date. The rally gained momentum after Donald Trump’s election victory in November 2024, pushing Bitcoin above $100,000 by early December. However, profit-taking and shifting expectations around Federal Reserve policy have led to increased volatility in recent weeks.
Expert Outlook: Short-Term Weakness, Long-Term Strength
Katie Stockton, a leading technical strategist on Wall Street, recently warned that Bitcoin’s upward momentum has weakened and could lead to a multi-week correction phase. She identified $84,500** as a potential short-term support level. If selling pressure intensifies, she believes the next major floor may form around **$73,800.
However, Stockton remains bullish on Bitcoin’s long-term trajectory. She views any significant pullback as a strategic entry point for investors aiming to accumulate assets at lower prices. Her analysis aligns with broader institutional sentiment — while short-term volatility is expected, the underlying demand for digital assets continues to grow.
Dollar Strengthens: Index Breaks Key 110 Threshold
In parallel with crypto turmoil, the U.S. dollar index (DXY) climbed above 110, signaling renewed strength in the greenback. This move follows a robust U.S. non-farm payroll report released last Friday, which reinforced expectations of sustained economic resilience.
Highly influential investment bank Goldman Sachs has revised its dollar forecast upward, citing two key factors:
- Continued strength in the U.S. economy
- Anticipated inflationary impact of proposed new tariffs
In a research note, Goldman strategists including Kamakshya Trivedi stated:
“We expect the dollar to appreciate by approximately 5% over the next year, driven by strong fundamentals and policy dynamics. Even after our latest revision, we see further upside potential.”
This marks the second time in roughly two months that Goldman has upgraded its dollar outlook. The shift reflects waning confidence in near-term Federal Reserve rate cuts. With inflation risks resurfacing due to potential trade policies — particularly those linked to former President Trump’s proposed tariffs — markets now anticipate a slower pace of monetary easing than previously expected.
👉 Stay ahead of macro trends shaping global markets today.
Tesla Shares Drop Pre-Market After Major Fund Exit
Adding to market jitters, Tesla’s stock declined more than 3% in pre-market trading following news that Europe’s largest pension fund, Stichting Pensioenfonds ABP (ABP), sold its entire Tesla stake in Q3 2024.
The Dutch fund disposed of approximately €571 million ($585 million) worth of Tesla shares. A spokesperson confirmed that one of the reasons was disagreement over Elon Musk’s executive compensation package.
ABP had previously opposed Musk’s pay plan in June 2024, calling it “controversial and excessive.” Although Tesla shareholders approved the plan at the time, regulatory scrutiny has persisted. In early December 2024, a Delaware judge once again rejected Musk’s record-breaking $56 billion compensation package, ruling that the original approval process compromised board independence.
Notably, ABP emphasized that its decision was not influenced by Musk’s political affiliations but was based on responsible investment principles, cost-benefit assessments, and governance concerns.
Despite Tesla’s strong price recovery since late September 2024, ABP expressed no regrets about exiting the position. “We are long-term investors,” the fund stated, underscoring its disciplined approach to portfolio management.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin drop so suddenly?
A: The sudden drop was likely triggered by a combination of profit-taking after recent highs, macroeconomic uncertainty, and leveraged positions being automatically liquidated as prices fell — creating a cascading effect.
Q: What caused the U.S. dollar to rise above 110?
A: Strong U.S. jobs data and expectations of delayed Fed rate cuts due to inflation risks — especially from potential new tariffs — have boosted investor confidence in the dollar.
Q: How many people were affected by crypto liquidations?
A: Nearly 170,000 traders faced liquidation in the past 24 hours, with total losses reaching $4 billion across all major cryptocurrencies.
Q: Is Bitcoin still a good long-term investment?
A: Many analysts and institutions remain optimistic about Bitcoin’s long-term value proposition due to limited supply, increasing adoption, and macro hedging potential — even amid short-term volatility.
Q: Why did ABP sell all its Tesla shares?
A: ABP cited concerns over Elon Musk’s compensation package, governance issues, and responsible investing standards as primary reasons for divesting its Tesla holdings.
Q: Could Bitcoin fall below $80,000?
A: Some technical analysts suggest $84,500 is initial support; if broken, further downside toward $73,800 is possible. However, strong institutional interest may limit deeper declines.
Market Takeaway: Volatility Meets Opportunity
While January 13 brought turbulence across asset classes — from crypto to equities — such periods often reveal both risks and opportunities. The sharp Bitcoin correction serves as a reminder of the dangers of over-leveraging in fast-moving markets. Meanwhile, the dollar’s rally underscores how macro forces continue to shape investor behavior globally.
For digital asset investors, pullbacks can present strategic accumulation chances — especially when aligned with long-term conviction. As institutional scrutiny increases — seen in actions like ABP’s exit from Tesla — governance and transparency are becoming equally important as performance metrics.
👉 Turn market dips into strategic moves with real-time insights and tools.
Core keywords naturally integrated throughout: Bitcoin, cryptocurrency, dollar index, liquidation, Fed rate cuts, Tesla stock, market volatility, Goldman Sachs forecast
With macroeconomic narratives evolving rapidly and digital assets maturing under regulatory and institutional scrutiny, staying informed is more critical than ever. Whether navigating crypto drawdowns or assessing equity fundamentals, a balanced, data-driven approach remains essential in today’s complex financial landscape.