[1/3] [Crypto/TradFi Final Merge Report] 2026-01-31 00:00 (Beijing Time) ━━ Important News ━━ 1. Trump announced his nomination of Kevin Warsh as Federal Reserve Chair, but the confirmation process encountered political obstacles. Trump stated that he would nominate former Fed Governor Kevin Warsh to succeed Powell; the market is clearly divided on his policy stance (hawkish/emphasis on monetary discipline and balance sheet reduction vs. a "crypto-friendly" narrative). In the Senate, Warren requested a halt to confirmation until the Justice Department's investigation into Powell concludes; Republican Senator Tillis stated he would oppose any Fed nomination confirmation. (CoinDesk | TruthSocial | The Block | CoinDesk | BlockBeats | PANews) 2. US inflation is "hotter": December PPI/core PPI exceeded expectations, putting further pressure on interest rate cut expectations. December's PPI rose 0.5% month-on-month (expected 0.2%) and 3.0% year-on-year (expected 2.7%); core PPI rose 0.7% month-on-month (expected 0.2%) and 3.3% year-on-year (expected 2.9%). The market tends to interpret this as a "delayed rate cut," putting pressure on risk assets (including BTC); CME pricing shows a probability of approximately 15.3% for a 25bp rate cut in March, and a cumulative probability of approximately 48.3% by June. (BlockBeats | TechFlow | BlockBeats | PANews) 3. Divergent opinions within the Federal Reserve: Waller supports a 25bp rate cut, while Bostic says "it's not needed now." Governor Waller noted that the FOMC recently voted against a 25bp rate cut and mentioned the neutral interest rate of around 3%, expressing concern about a deteriorating labor market. Bostic emphasized the need for patience and waiting for more evidence that inflation will return to 2%. (BlockBeats | Foresight News | PANews) 4. After the Federal Reserve held rates steady, the US-listed spot BTC/ETH ETF saw a net outflow of nearly or more than $1 billion in a single day. Multiple media outlets reported that the total outflow of US-listed spot BTC/ETH ETFs was close to or exceeded $1 billion in a single day (another source said $817 million). BTC once fell below $83,000, and the market traded amid macroeconomic uncertainty and increased volatility. (The Block | Decrypt | CoinDesk) 5. High volatility across the network leading to forced liquidation: Approximately $1.228 billion to $1.464 billion in liquidations occurred in 24 hours, with long positions accounting for the majority; the largest single liquidation was approximately $80.58 million (HTX BTC-USDT). (Odaily | PANews | TechFlow) 6. Precious metals experienced an "epic" plunge: Gold briefly fell below $5,000/ounce, and silver briefly fell below $100. A series of liquidations occurred in derivatives markets. Gold briefly fell below $5,000/ounce, with a maximum drop of over 9%, before rebounding; silver briefly fell below $100. Many attributed the volatility to profit-taking, technical corrections, and high-leverage liquidations; multiple large-scale liquidations occurred on-chain and in derivatives markets. (PANews | Foresight News | BlockBeats | Kobeissi Letter) 7. Advances in the US Crypto Regulatory Framework: SEC/CFTC reportedly pushing "Project Crypto," but legislative disagreements may delay until after 2026. Reports indicate that the SEC and CFTC are pushing "Project Crypto" to coordinate regulations; Citi believes the "CLARITY Act" is gaining momentum, but disagreements over DeFi and stablecoin rewards may postpone the final implementation of the crypto legislation. (Odaily | CoinDesk | Decrypt) 8. Hong Kong promotes virtual asset regulation and tax information exchange: It plans to submit four VASP drafts this year, and CARF aims to be implemented from 2028.