Euro Flash Crash! EUR/USD drops below 1.16, hitting a nearly 5-month low

RektRecovery · 2026-01-15T13:58:12+00:00

Today, the euro against the US dollar fell below 1.16, hitting a new low since December last year, with a decline of 0.37%. The strong rebound of the US dollar may put pressure on risk assets, including the crypto market. Investors should pay attention to the policy movements of the European Central Bank and the Federal Reserve, as changes in interest rate differentials will affect asset allocation.

RektRecovery

2026-01-15 13:58:12

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【BitPush】The euro’s performance today is not very optimistic. The euro against the US dollar just broke below the 1.16 level for the first time since early December last year, with an intraday decline of 0.37%.

It seems the US dollar is once again showing strength. Whenever the euro weakens significantly like this, it usually indicates that risk assets will come under pressure—including the crypto market. Historical experience tells us that sharp fluctuations in the traditional forex market often transmit to the crypto space, as investors’ risk appetite adjusts and capital may withdraw from high-risk assets.

This moment is worth paying attention to. On one hand, we need to watch the policy moves of the European Central Bank; on the other hand, we should observe the stance of the Federal Reserve. Exchange rate fluctuations are often driven by changing interest rate differentials, which have a profound impact on asset allocation. As a representative of risk assets, cryptocurrencies typically follow these macroeconomic fluctuations.

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BearMarketGardener

· 01-15 14:28

The euro plummeted again, the dollar is strong, and the crypto world is about to be passively dragged down... This pattern is all too familiar.

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quietly_staking

· 01-15 14:20

The euro is underperforming again. I should have known not to enter the market so early. Now I'm trapped.

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AirDropMissed

· 01-15 14:16

The euro is underperforming again, and now the crypto world has to suffer as well... The US dollar has been quite strong this time.

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MindsetExpander

· 01-15 14:01

The euro has collapsed again, and now the crypto market has to suffer as well. The recent surge in the US dollar is indeed quite strong, but on the other hand, the interest rate differential expectations really need to be closely watched. --- Here we go again, when the forex market moves, the crypto market trembles along. When will it be able to stand alone? --- Breaking 1.16? If it happens, it happens. The key is to see what the Federal Reserve does next—that's the real focus. --- With risk assets being withdrawn? Then I need to be cautious with my positions, but it’s not too pessimistic. --- It’s annoying how it always moves in tandem like this, honestly. --- The policy game between the ECB and the Federal Reserve is what truly determines the future direction; the flash crashes are just surface phenomena.

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