Crypto markets dip on trade fears as Rick Rieder surges in Fed chair race
Crypto started the week with a nervous edge, and it was not only the charts. Traders had one eye on tariff headlines and another on Washington gossip, after BlackRock’s Rick Rieder abruptly became the favourite in online betting for the next Federal Reserve chair. Meanwhile, GameStop shifted its entire 4,710 Bitcoin hoard to Coinbase Prime, a move that often precedes selling, even if it does not guarantee it.
Bitcoin hovered around $89,500 in early trading on Friday, down on the week, as risk appetite thinned into the next Federal Open Market Committee decision. Therefore, the market’s reflex was simple: trim exposure first, ask questions later. However, the day’s price action looked more like a slow leak than a panic, with liquidations contained and bids still appearing below $89,000.
Rieder’s sudden rise sharpens the macro conversation
Prediction markets rarely move this fast without a catalyst. Rieder, BlackRock’s chief investment officer for global fixed income, oversees about $2.4 trillion. He met President Trump last week, then received public praise as “very impressive”. Consequently, his odds on Polymarket jumped from single digits roughly ten days ago to the 43% to 60% range by the week’s end.
That leap pushed past former Fed governor Kevin Warsh, marked around 28% to 45% in the same window. Meanwhile, Kevin Hassett, once an early favourite, slipped to the mid single digits. Traders treated the shift as more than beltway theatre, because a credible front-runner can reprice the path for rates well before any appointment.
Rieder has argued for lower policy rates, with a view that the federal funds rate should sit below 4% to pull mortgage rates into the mid 5% range. Therefore, rate-sensitive assets, from homebuilders to high duration tech, perked up in chatter even as crypto softened. However, the same betting markets still show meaningful odds that rates stay above 2.5% by year-end, which hints at a shallower cut cycle than the most optimistic bulls want.
GameStop moves its Bitcoin, and traders flinch
GameStop transferred 4,710 BTC to Coinbase Prime on 24 January, worth roughly $420 million at current prices. The company bought the position in May 2025 at an average near $107,900, spending about $504 million. Consequently, any outright sale here would crystalise an $80 million-plus loss, at least on paper.
Big transfers to prime brokerage rails can be pure custody housekeeping. However, they also tend to happen when firms want liquidity, need collateral flexibility, or plan to reduce exposure. That uncertainty alone was enough to sour sentiment, because corporate treasury crypto remains a thin story when prices fall and shareholders start asking why.
- GameStop’s transfer: 4,710 BTC to Coinbase Prime on 24 Jan
- Cost basis: about $107,900 per BTC in May 2025, or $504m total
- Mark-to-market now: about $421m to $422m near $89,500
- Implies a paper loss: roughly $80m to $85m if sold around spot
- Bitcoin ETFs: fifth straight day of net outflows, $103.5m latest tally
ETFs bleed, but the tape stays orderly
Spot Bitcoin ETFs logged another day of outflows, taking the streak to five sessions and the latest figure to $103.5 million. Therefore, the market’s marginal buyer looked less like a long-only allocator and more like tactical traders hunting levels. However, price did not cascade, which suggests sellers still struggled to force a disorderly move in a market with deep liquidity.
Elsewhere, altcoin narratives kept running. Solana’s on-chain activity and fee momentum remained a bright spot, while XRP chatter rose again on the idea that Trump-era policy could tilt more favourably towards parts of the sector. Meanwhile, a burst in NFT sales volumes added colour, even if most macro desks still treat that corner as a sentiment gauge, not a driver.
What to watch next
The near-term setup now hinges on two catalysts that do not usually share a page. First, the Fed decision and guidance will decide whether risk assets can stabilise. Second, any confirmation from GameStop about whether the Coinbase Prime move was a sale prep or a custody shift could change intraday flows.
- BTC $89,000 has become the line traders keep leaning on, so a clean break could accelerate stops.
- Prediction market odds can swing fast, yet the rate path matters more than the name.
- ETF flows remain the daily tell for institutional risk appetite.
- Corporate treasury crypto is still fragile, especially if boards face quarterly scrutiny.
- Trade headlines can overwhelm everything, because they hit growth, inflation, and the Fed narrative at once.
For now, crypto is acting like a macro asset again. Therefore, traders will keep one screen on the Fed and another on wallets, because the next move may come from either.
