Market highlights
- Leveraged liquidation flush saw US$750 million liquidations occur over the weekend.
- U.S. Senate’s crypto market structure bill to proceed to markup vote on January 30.
- New bitcoin whale holdings grew to US$130 billion, surpassing “OG” whales’ holdings.
- Delaware Life Insurance filed to offer a BlackRock bitcoin-linked fixed indexed annuity.
- Galaxy Digital is launching a US$100 million crypto hedge fund.
- Trump Media & Technology Group is planning a crypto token airdrop for shareholders.
Macro market overview
Risk-off sentiment spread across markets this week as geopolitical uncertainty centred around President Trump’s tariffs, mixed expectations for Q4 earnings, the potential for a partial U.S. Government shutdown, and anticipation ahead of the U.S. Federal Open Market Committee’s (FOMC) January 28 rate decision. According to CME’s Fed Watch tool, the likelihood of a rate cut this week currently stands at 2.8%. This week in tariffs, President Trump stepped back on his position of using force to take control of Greenland and imposing tariffs on select European nations, but he has threatened 100% tariffs on Canada if the country proceeds to strike a trade deal with China.
In economic data, the U.S. final gross domestic product for the quarter ending December 31, 2025 came in above forecast at 4.4%, while the core personal consumption expenditures index for December came in on forecast 0.2%. The Bank of Japan held rates steady at <0.75% on Friday, January 23, though two sudden spikes where the Yen gained against the U.S. dollar raised questions around whether Japanese authorities had completed a rate check. The New York Federal Reserve completed dollar/yen rate checks at around midday (eastern time) on Friday. Amid this week’s uncertainty, gold and silver hit record highs of US$5,110 and US$109, respectively per ounce.
Weekly performance: S&P 500 -0.5%, Dow Jones -0.6%, Nasdaq +0.2%.
Looking ahead:
- Bank of Canada rate decision - Wednesday, January 28
- U.S. FOMC rate decision - Wednesday, January 28
- U.S. Core Producer Price Index - Friday, January 30
Crypto Market Performance
Most sectors saw declines this week, while gaming made minor gains and bridging services led the way. The weekend saw another leveraged liquidation flush across the crypto market, with US$750 million worth of positions liquidated. The losses are presumably due to uncertainty centred around the rising strength of the Japanese Yen and the prospect of a partial U.S. Government shutdown if the Senate doesn’t pass a new funding bill by Friday, January 30. The crypto fear and greed index is currently in fear territory at 29.
Biggest gainer
- Bridge: LayerZero (+17%) made gains. The omnichain interoperability protocol rallied after price held steady following its most recent token unlock, which saw about 6.4% of supply released to the market.
Bitcoin (BTC)
- Opened the week at US$93,630, and sold off on uncertainty across markets, primarily due to tariffs, U.S. interest rates, a potential U.S. Government shutdown, and anticipation of mixed Q4 earnings. The sell-off continued into the new week, with US$60 million worth of leveraged bitcoin longs liquidated in 30 minutes overnight on Sunday. Bitcoin is now trading around US$88,800 to start the new week (-5.4% 7D).
- BTC dominance hovered around 59.6% this week.
- Bitcoin investment products saw almost US$1.1 billion of inflows.
New bitcoin whale addresses holding 1,000–10,000 BTC have recently increased their share of supply, surpassing older large holders. New whales now hold US$130 billion of bitcoin, while “OG” whales hold US$126 billion worth of bitcoin. The data suggests a shifting balance of large-scale ownership and renewed confidence among emerging institutional participants.
Delaware Life Insurance filed to offer a BlackRock bitcoin-linked fixed indexed annuity, giving policyholders returns tied to bitcoin’s performance with built-in principal protection. The product aims to blend traditional retirement planning with regulated crypto exposure.
Kansas lawmakers introduced a bill to establish a state-run bitcoin and digital assets reserve fund, allowing the state to hold BTC and other tokens as part of its fiscal strategy. The proposal seeks to accrue digital assets through the State’s abandoned property process, which would see assets allocated to the fund if the owner doesn’t claim the assets within three years.
In bitcoin buying news:
- Strategy bought 25,240 bitcoin, bringing its total holdings to 712,647 BTC at an average purchase price of US$76,037 per bitcoin.
Ethereum (ETH)
- Opened the week at US$3,282, and sold off due to the geopolitical and macroeconomic uncertainty that affected markets this week. Ethereum is now trading around US$2,930 to start the new week (-8.9% 7D).
- Ethereum dominance hovered between 12.6% and 11.7% this week.
- Ethereum-focused funds saw outflows of US$630 million.
The Ethereum Foundation has established a dedicated post-quantum cryptography team to address emerging security risks from future quantum computers. The group will research and test quantum-resistant algorithms to safeguard Ethereum’s consensus and wallet infrastructure, seeking proactive defences before practical quantum threats materialise.
In Ethereum buying news:
- Bitmine bought 40,302 ETH, bringing its total holdings to over 4.2 million (3.5% of ETH’s supply), worth around US$12.3 billion.
Altcoins
The altcoin season index is currently at 41, which is still bitcoin season.
Playing games
- KAIA gained 36.4%. The Asia-based Ethereum virtual machine (EVM)-compatible layer-1 chain broke out of a multi-month downtrend, presumably due to the network’s expansion into Web3 gaming. The new web3 game, Magic Squad, recently introduced a gas abstraction feature that integrated the KAIA wallet.
Privacy gains
- Canton gained 32.9%. The public blockchain for regulated entities features configurable privacy controls, and presumably saw gains as privacy-focused chains rallied in recent weeks. Institutional adoption, such as JP Morgan integrating its JP coin on the network indicates its strong position as a layer-1 network for global financial services firms.
Crypto ETF News
Digital asset investment products saw outflows of US$1.7 billion due to risk-off sentiment caused by persistent geopolitical and macroeconomic uncertainty. Solana was the outlier, with US$17.1 million of inflows.
Bitwise launched a new exchange-traded fund (ETF) this week. The Bitwise Proficio Currency Debasement ETF (BPRO) adjusts exposure to assets based on market conditions. The fund aims to have a minimum 25% stake in gold at all times, plus strategic holdings across palladium, silver, platinum, mining equities and bitcoin.
21Shares launched the first spot DOGE ETF backed by the Dogecoin Foundation. It’s the first Dogecoin ETF to have received approval from the U.S. Securities and Exchange Commission (SEC).
BlackRock filed with the SEC to launch the iShares Bitcoin Premium Income ETF, which uses an options strategy to generate income beyond spot price gains.
F/m investments filed for approval to record the ownership of its U.S. Treasury 3-month bill (TBIL) ETF on a permissioned blockchain.
Other crypto news
- The U.S. Senate’s crypto market structure bill is expected to progress to a markup vote on Thursday, January 29 in the Senate Committee on Agriculture, Nutrition and Forestry. The updated draft reportedly still doesn’t have bipartisan support, and the Senate Banking Committee has also delayed its work on crypto market structure legislation, adding to uncertainty around whether the bill will actually pass in the coming weeks.
- Galaxy Digital, led by Mike Novogratz, is launching a US$100 million crypto hedge fund focused on opportunistic strategies as bitcoin prices have declined. The fund will pursue directional and relative-value trades across digital asset markets, aiming to capitalise on volatility and make gains, even when bearish sentiment prevails.
- Trump Media & Technology Group is planning a crypto token airdrop for shareholders in February, contingent on shareholder approval. The token will grant holders future governance rights and benefits within the company’s ecosystem. The tokens will not represent interest in Truth Social, be transferable or exchangeable for cash. Recipients need to hold one full share in the company to be eligible for the airdrop.
- Swiss banking firm, UBS Group AG, is reportedly planning to offer bitcoin and Ethereum trading to select private clients through its wealth-management division, according to Bloomberg. The service would enable high-net-worth investors to access regulated crypto trading within UBS’s existing infrastructure.
- Ledger, the hardware-wallet manufacturer, is reportedly preparing a US$4 billion initial public offering, aiming for a U.S. or European listing. The offering would capitalise on growing demand for self-custody solutions, expanding the company’s institutional and retail reach while boosting visibility for regulated crypto security products in public markets.
- Thailand’s Securities and Exchange Commission unveiled a three-year plan to accelerate digital asset markets, prioritising tokenisation of real-world assets, expansion of crypto-linked ETFs, and enhancements to trading infrastructure. The strategy aims to deepen liquidity, broaden investor access, and strengthen regulatory frameworks while positioning Thailand as a regional digital-finance hub.
from Caleb & Brown Cryptocurrency Brokerage.
