Most institutional investors remain bullish on Bitcoin despite brutal fourth-quarter volatility that erased nearly a third of the asset’s value from recent peaks.

A new Coinbase Institutional and Glassnode survey found 70% of institutions view BTC as undervalued, even after the token dropped from above $125,000 in early October 2025 to trade around $90,000 by year-end, while 60% of non-institutional investors share that conviction.

The findings come from a quarterly poll of 148 global investors, split between 75 institutions and 73 non-institutions, conducted between December 10, 2025, and January 12, 2026.

Despite the October liquidation event that shook altcoin markets and compressed leverage across derivatives platforms, most respondents held or added to crypto positions rather than retreating.

Around 62% of institutions and 70% of non-institutions either maintained existing allocations or increased net long exposure since October.

Bearish Sentiment Rises, But Doesn’t Dominate Positioning

Perceptions of the market cycle shifted noticeably during the quarter.

Around 26% of institutions and 21% of non-institutions now believe crypto has entered the bear-market markdown phase, up sharply from just 2% and 7%, respectively, in the prior survey.

That shift exposes the weight of October’s deleveraging event, which saw the Altcoin Season Index plummet and mid-cap tokens struggle to recover their third-quarter gains despite the launch of several spot altcoin ETFs in the US.

Still, the uptick in bearish views did not translate into widespread selling. Most investors stuck with their positions, and sentiment toward Bitcoin specifically remained constructive.

“We have a constructive view for 1Q26,” Coinbase Global Head of Research David Duong wrote in the report. “We believe that crypto markets are entering 2026 in a healthier state, with excess leverage having been flushed from the system in Q4.“

Bitcoin dominance held relatively steady through the turbulence, rising only marginally from 58% to 59% over the quarter, a sign that institutional capital continued to favor the largest digital asset even as smaller tokens faced sustained selling pressure.

Open interest in BTC options overtook perpetual futures as market participants sought downside protection, with the 25-day put-call skew staying positive across 30-day, 90-day, and 180-day expiries.

Coinbase Survey Points to Macro Support and Policy Progress

Several factors underpinned the optimistic outlook. Inflation held steady at 2.7% in December’s Consumer Price Index reading, and the Atlanta Fed’s GDPNow model projected robust 5.3% real GDP growth for the fourth quarter as of January 14.

While the future direction of monetary policy remained uncertain, Duong said the firm still expects the Federal Reserve to deliver two rate cuts totaling 50 basis points currently priced into Fed funds futures, “which should provide a tailwind for risk assets broadly and crypto specifically.“

Questions about comprehensive crypto market structure legislation persist, but confidence in eventual regulatory clarity stayed firm.

“We’re confident that we will eventually see a set of rules that allows the industry to reach its full potential,” the report stated, noting that major policy progress in the US, particularly around the proposed CLARITY Act, could boost investor sentiment further.

Beyond the survey, separate data shows institutional engagement deepening across channels.

A recent Bitwise and VettaFi poll found 32% of financial advisors allocated to crypto in client accounts during 2025, up from 22% in 2024, with registered investment advisors leading at 42%.

Similarly, a separate Coinbase survey found that younger US investors now allocate 25% of their portfolios to non-traditional assets, compared with 8% among older cohorts.

Risks Remain, But Long-Term Trajectory Holds

The Coinbase report acknowledged headwinds. While the economy appears solid, the jobs market cooled in 2025, with the US adding just 584,000 positions, down from 2 million in 2024, partly due to increased AI adoption.

Geopolitical tensions have flared in several regions, and any escalation that disrupts energy markets could dampen investor appetite.

“A meaningful uptick in inflation, a spike in energy prices, or a significant flare up of geopolitical tensions could warrant a more cautious approach to risk assets,” the report warned.

Still, onchain metrics improved after October’s shakeout. Bitcoin supply moved within three months, surged 37% in the fourth quarter, while coins unmoved for over a year fell 2%, indicating short-term distribution that likely cleared weaker hands.

Ethereum’s Net Unrealized Profit/Loss ratio swung sharply through 2025, hitting capitulation in the first quarter, then rising to optimism in the third quarter, and settling back into fear territory by year-end.

Despite recent ETF outflows totaling $1.62 billion over four trading days and Bitcoin slipping below $90,000, institutional conviction appears durable. As Duong put it, “crypto markets are entering 2026 in a healthier state.”

The post 70% of Institutions Say Bitcoin is Undervalued Despite 30% Crash – Bitcoin About to Rally? appeared first on Cryptonews.

Polymarket has re-entered the U.S. market following regulatory approval from the Commodity Futures Trading Commission (CFTC), a move that could position prediction markets as a new engagement tool for major crypto platforms such as Coinbase, according to a report by Clear Street analyst Owen Lau.

The prediction market operator which was restricted from serving U.S. customers in 2022, has returned after receiving a CFTC approval of an Amended Order of Designation.

Polymarket has now launched a U.S.-based application initially offering a limited set of sports-related event contracts, with additional verticals such as politics and crypto expected over time.

Lau describes the development as a meaningful reversal allowing Polymarket to onboard brokerages and customers directly while facilitating trading on regulated U.S. venues.

Ultra-Low Fees Show Growing Competition

Polymarket’s comeback is accompanied by a notably aggressive pricing structure. The platform is offering 10 basis point taker fees and zero maker fees which Lau believes is the lowest among major prediction market and sports betting platforms.

For comparison, DraftKings and FanDuel reported net revenue margins of 6.7% and 10.1%, respectively. Lau said Polymarket’s pricing makes it a credible alternative to incumbent sports betting operators and signals increasing fee compression across event-based trading markets.

State-Level Regulatory Risk Remains Fragmented

While the CFTC approval may suggest improved federal-level clarity for certain event contracts, Lau cautioned that regulatory risk remains uneven at the state level.

On Jan. 20, 2026, a Massachusetts judge granted an injunction preventing rival platform Kalshi from offering sports-related event contracts in the state.

More broadly, at least three states — Massachusetts, Nevada, and Maryland — have issued unfavorable rulings against prediction market platforms, highlighting continued fragmentation across U.S. jurisdictions. This patchwork environment could complicate the sector’s expansion even as federal oversight becomes clearer.

Coinbase Seen as Key Distribution Partner

Lau argues that these developments represent an opportunity for Coinbase and indirectly Circle to partner with Polymarket or other prediction market platforms.

Coinbase’s scale — more than 100 million verified users and 9.3 million monthly transacting users — provides a sizable and relevant distribution base for event contracts. In his note, Lau suggests that prediction markets could benefit from being embedded into larger platforms with existing user engagement.

However, he notes that prediction markets may not become major standalone profit centers in the near term. Instead, Lau expects them to serve primarily as engagement and retention tools within Coinbase and other integrated platforms, helping drive activity and user stickiness amid rising competition.

As prediction markets expand beyond sports into politics and crypto, Polymarket’s U.S. return could mark a new phase for event-based trading — even as regulatory uncertainty continues to shape the sector’s trajectory.

The post Polymarket’s U.S. Comeback Positions Prediction Markets as a Coinbase Retention Play: Analyst appeared first on Cryptonews.

The crypto market is down today again. The cryptocurrency market capitalisation decreased by 0.8% over the past 24 hours, now standing at $3.05 trillion. At the time of writing, 93 of the top 100 coins recorded price drops. The total crypto trading volume stands at $139 billion.

Crypto Winners & Losers

We started the new week very much in the red. As of Monday morning (UTC), all top 10 coins per market capitalisation have posted price drops over the past 24 hours.

Bitcoin (BTC) fell by 0.7%, currently trading at $87,860. This is the smallest drop on the list,

Bitcoin (BTC)

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Ethereum (ETH) decreased by 1.5%, changing hands at $2,892.

The highest fall among the top 10 is Solana (SOL)’s 3.3% to the price of $122.

It’s followed by Dogecoin (DOGE)’s drop of 1.6%, now trading at $0.1213.

At the same time, Tron (TRX) fell the least: 0.4% to $0.2953.

Moreover, of the top 100 coins per market cap, 93 have seen their price drop today.

MYX Finance (MYX) fell the most. It’s down 14%, now trading at $5.86.

Monero (XMR) follows, with a decrease of 5.4%, currently standing at $466.

Of the green coins, River (RIVER) stands at the top, having jumped by 43% to the price of $84.7.

The next on the list is Algorand (ALGO), which saw an increase of 2.3% to $0.1189.

The rest are up 1.3% and less per coin.

Macro uncertainty triggered over $550 million in crypto liquidations as BTC and ETH came under pressure.

Meanwhile, the UK’s Financial Conduct Authority (FCA) moved into the final stage of consultations on a set of proposed crypto regulations. The FCA said it is seeking feedback on 10 proposed rules, describing this as the “final step” in the consultation process.

“These proposals continue our progress towards an open, sustainable and competitive crypto market that people can trust,” the regulator said.

BTC May See Belated Reaction

Gadi Chait, Investment Manager at Xapo Bank, commented that recent weakness in Bitcoin follows a brief recovery last week, “set against a backdrop of macroeconomic developments that have influenced risk assets broadly.”

A convergence of factors drives volatility across markets. These include heightened geopolitical tensions and ongoing conflicts. Renewed focus on US strategic positioning toward Greenland and Donald Trump’s address at Davos “added to an already unsettled global environment.”

Regulatory uncertainty, especially in the US, and macroeconomic pressures add to this. “Central bank policy divergence, including expectations around further tightening by the Bank of Japan and the continued reduction of liquidity by the US Federal Reserve, continues to shape market behaviour.”

Chait says that, “amid this uncertainty, traditional commodities have rallied, while Bitcoin has underperformed. The reasons for this divergence are not yet clear, though such sequencing across asset classes is not without precedent.”

“It remains possible that Bitcoin’s response emerges later, particularly as volatility subsides. For long-term participants, however, short- to medium-term price fluctuations remain a familiar feature rather than a signal of impaired fundamentals,” Chait concluded.

Moreover, Petr Kozyakov, Co-Founder and CEO at Mercuryo, argued that as a speculative asset, BTC has come under sustained selling pressure, and altcoins have followed suit.

“While the fortunes of the digital asset space will always be viewed through a lens fixated on token prices, the bigger picture is one of continued stablecoin adoption and the steady development of payment infrastructure,” he says.

He continues: “The evolution of the digital token space is being driven by merger and acquisition activity, alongside the inherent efficiencies of blockchain-based technology and its ability to operate around the clock, at speed and at lower cost.”

“This reality is increasingly unavoidable for financial institutions still reliant on technology that dates back to the 1960s. Away from daily price movements, a quiet revolution is most definitely afoot,” Kozyakov concluded.

Levels & Events to Watch Next

At the time of writing on Monday morning, BTC was changing hands at $87,860. While the coin begun the day at the intraday high of $88,800, it relatively swiftly dropped to the low of $86,126. It has recovered somewhat since.

Over the past seven days, BTC decreased by 5.1%, trading in the $86,319–$93,252 range. It’s now 30% away from its all-time high of $126,080.

Failing to hold the current level risks additional pullbacks towards the $85,000 level, followed by $84,300 and $83,800.

At the same time, Ethereum was trading at $2,892. Earlier in the day, it traded at the intraday high level of $2,941. However, it then plunged to the intraday low of $2,787. It managed to shift course and move higher following this drop.

In a week, ETH fell 9.2%, moving between $2,801 and $3,222. Moreover, it decreased 41% from its ATH of $4,946.

Currently, the price risks a fall toward $2,670 and $2,520 in the near term.

Ethereum (ETH)

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Additionally, according to Bloomberg Intelligence Senior Commodity Strategist Mike McGlone, it is more likely that ETH will revisit the $2,000 level than push upwards and above $4,000.

ETH has been stuck in the $2,000–$4,000 range since 2023. However, it is leaning toward the lower end of this range.

Meanwhile, the crypto market sentiment exited the neutral zone a week ago, and it has continued falling lower within the fear zone since.

The crypto fear and greed index decreased further over the weekend, currently standing at 29, compared to 34 seen over the weekend.

Unsurprisingly, given the market conditions, the sentiment reflects the overall worry and caution. It is now possible that the metric will drop further.

ETFs Continue The Red Streak

The US BTC spot exchange-traded funds (ETFs) posted another day of outflows on Friday, totalling $103.57 million. This is the fifth consecutive day of negative flows.

The total net inflow has pulled back yet again and now stands at $56.49 billion.

Of the twelve ETFs, two recorded outflows, and none saw inflows. BlackRock let go of $101.62 million, and Fidelity followed with $1.95 million in outflows.

Moreover, the US ETH ETFs posted outflows as well on 22 January, with $41.74 million – a similar level as the day earlier. With this fourth consecutive red day, the total net inflow now stands at $12.3 billion.

Of the nine funds, two ETH ETFs posted outflows, and two saw inflows. BlackRock recorded $44.49 million in outflows, followed by Grayscale’s $10.8 million.

At the same time, Grayscale Mini Trust took in 9.16 million, followed by Fidelity’s $4.4 million in inflows.

Meanwhile, Japan’s Financial Services Agency is reportedly planning to add cryptocurrencies to the list of assets eligible for spot ETF products.

Japan would likely approve its first set of spot crypto ETFs as early as 2028, ending the agency’s ban on spot crypto ETFs.

Quick FAQ

1. Did crypto move with stocks today?

The crypto market has seen yet another drop over the past day. Meanwhile, the US stock market closed the week with a mixed picture. That said, it also posted a second consecutive red week. By the closing time on Friday, 23 January, the S&P 500 was up 0.033%, the Nasdaq-100 increased by 0.34%, and the Dow Jones Industrial Average fell by 0.58%. Due to high volatility, investors are shifting their money into safe-haven assets, particularly gold.

2. Is this drop sustainable?

For now, the drops may continue in the near- to mid-term, pushed by macroeconomic developments. Occasional smaller and brief jumps are expected, intersecting the current trend.

The post Why Is Crypto Down Today? – January 26, 2026 appeared first on Cryptonews.

A security breach tied to decentralized exchange aggregator Matcha Meta has resulted in the theft of roughly $16.8 million in crypto assets, adding to a growing list of smart-contract exploits that continue to test the safety assumptions of DeFi users.

The incident unfolded on Sunday and was traced not to Matcha’s core infrastructure, but to SwapNet, one of the liquidity providers integrated into the platform.

Matcha Meta disclosed the issue publicly in a post on X, saying users who had disabled its “One-Time Approval” feature and instead granted direct token allowances to individual aggregator contracts may have been exposed.

The protocol urged affected users to immediately revoke approvals connected to SwapNet’s router contract, warning that failure to do so could leave wallets vulnerable to further unauthorized transfers.

$17M Vanishes in Seconds: How Matcha Hackers Slipped Funds Onto Ethereum

Blockchain security firms quickly began tracking the exploit as funds moved on-chain.

PeckShield reported that approximately $16.8 million had been drained in total, with the attacker swapping around $10.5 million in USDC for roughly 3,655 ETH on the Base network before starting to bridge assets to Ethereum.

CertiK independently flagged suspicious transactions, identifying one wallet that siphoned about $13.3 million in USDC on Base and converted the funds into wrapped Ether.

Both firms pointed to a vulnerability in the SwapNet contract that allowed arbitrary calls, enabling the attacker to transfer tokens that users had previously approved.

Matcha later clarified that the incident was not connected to 0x’s AllowanceHolder or Settler contracts, which underpin its One-Time Approval system.

The team noted that users who interacted with Matcha using One-Time Approvals were not affected, as this design limits how much access a third-party contract can retain.

The exposure, the team said, applied only to users who opted out of that system and granted ongoing allowances directly to aggregator contracts. In response, Matcha has removed the option for users to set such direct approvals going forward.

Old Token Approvals Emerge as a Persistent DeFi Weak Spot

The breach highlights a recurring tension in DeFi between flexibility and safety. Token approvals, while necessary for interacting with smart contracts, have long been a weak point, particularly when permissions remain active long after a transaction is completed.

In this case, previously granted allowances became the pathway for the exploit once the SwapNet contract was compromised.

The incident arrives amid continued concerns over smart-contract security across the crypto sector.

SlowMist’s year-end report shows that vulnerabilities in smart contracts accounted for just over 30% of crypto exploits in 2025, making them the leading cause of losses.

Researchers have also warned that advances in artificial intelligence are accelerating how quickly attackers can identify and exploit weaknesses in on-chain code.

While overall crypto losses declined in December, falling about 60% month-on-month to roughly $76 million, security firms cautioned that the drop did not reflect a structural improvement.

PeckShield noted that a single address-poisoning scam accounted for $50 million of December’s losses, showing how concentrated and severe individual incidents can be even during quieter periods.

January has already seen several notable exploits. IPOR Labs confirmed a $336,000 attack on its USDC Fusion Optimizer vault on Arbitrum, while Truebit disclosed a smart-contract incident that on-chain analysts estimate drained more than 8,500 ETH, triggering a near-total collapse in the project’s token price.

Last week, Layer-1 network Saga paused its SagaEVM chain after an exploit moved close to $7 million in assets to Ethereum.

The post Matcha Meta Breach Drains $16.8M via SwapNet Exploit — Users Urged to Revoke Access appeared first on Cryptonews.

Jeel, a subsidiary of Riyad Bank, has signed a partnership with Ripple to explore advanced blockchain applications aimed at strengthening financial services across Saudi Arabia.

In a press release shared with CryptoNews, the firm said the partnership will focus on developing secure and transparent digital infrastructure that can support the Middle East.

The agreement is part of growing institutional interest in blockchain payment systems and digital asset technologies as Saudi Arabia continues positioning itself as a regional leader.

Cross-Border Payments, Custody and Tokenization in Focus

The deal will also assess how blockchain technology can improve the speed, cost efficiency and transparency of cross-border payments, a key area of opportunity for the Gulf region’s remittance and trade corridors.

Beyond payments Jeel and Ripple will also explore use cases in digital asset custody and tokenization. These technologies are increasingly viewed as foundational components of next-generation financial markets, allowing the storage of digital assets and the representation of real-world assets on blockchain networks.

Regulatory Sandbox Testing to Support Responsible Innovation

Jeel and Ripple will also jointly develop proofs-of-concept within Jeel’s regulatory sandbox allowing Ripple’s blockchain solutions to be tested in a controlled and compliant environment.

The firm’s will examine how blockchain-enabled payment corridors can improve international remittance experiences while also evaluating custody frameworks.

“This partnership with Ripple reflects our strategy of using the Jeel Sandbox to responsibly explore next-generation financial infrastructure,” said George Harrak CEO of Jeel.

“By combining regulated experimentation with global blockchain expertise, we are building the foundations to evaluate scalable use cases that enhance cross-border payments and digital asset capabilities in line with the Kingdom’s long-term digital ambitions,” adds Harrak.

The sandbox approach is expected to help demonstrate scalable and interoperable digital financial infrastructure that could contribute to the modernization of Saudi Arabia’s banking ecosystem.

Value for Both Jeel and Ripple

For Jeel, the partnership strengthens its position as a pioneer in regulated blockchain experimentation, expanding its innovation capabilities beyond traditional fintech acceleration programs. The collaboration also supports Riyad Bank’s broader ambition to evaluate future-ready digital financial services.

Ripple, meanwhile, gains strategic access to Saudi Arabia’s fast-growing fintech landscape through Jeel’s institutional network and innovation platform.

“Saudi Arabia’s visionary leadership has established the Kingdom as a forward-thinking global hub for digital transformation,” said Reece Merrick, Managing Director for the Middle East and Africa at Ripple. “Ripple has signed an MOU with Jeel to explore integrating secure, efficient blockchain solutions into the national financial architecture.”

The post Riyad Bank’s Jeel Partners With Ripple to Advance Blockchain Payments and Tokenization appeared first on Cryptonews.

Japanese Bitcoin treasury firm Metaplanet reported a 104.6 billion yen ($680 million) impairment on its Bitcoin holdings, reflecting the impact of last year’s market downturn on the value of its digital asset portfolio.

In a press release issued Monday, the company said the impairment was recorded as a non-operating expense and does not affect cash flows or day-to-day operations.

Even so, the accounting charge is expected to weigh heavily on reported results for the fiscal year ended December 2025.

Metaplanet Forecasts Up to $640M Loss Following Bitcoin Write-Down

Including the Bitcoin-related write-down, Metaplanet now expects to post a consolidated ordinary loss of 98.56 billion yen ($640 million) and a consolidated net loss of 76.63 billion yen ($498 million).

The company also forecast a comprehensive loss attributable to shareholders of 54.02 billion yen ($351 million). Final earnings are scheduled for release on Feb. 16.

“While short-term accounting volatility is inherent to our business model, our medium-to-long-term BTC accumulation and capital strategy remain on track,” Metaplanet said, underscoring its commitment to maintaining Bitcoin as a core treasury asset.

The scale of the impairment reflects the company’s rapid accumulation of Bitcoin over the past year. By the end of 2025, Metaplanet held 35,102 BTC, up sharply from 1,762 BTC a year earlier.

According to a previous disclosure from Chief Executive Simon Gerovich, the firm spent $451.06 million during the fourth quarter of 2025 to expand its holdings, paying an average price of $105,412 per Bitcoin.

Bitcoin was trading near $87,500 at the end of December.

Despite the headline loss, Metaplanet raised its full-year 2025 guidance, pointing to stronger-than-expected performance in its Bitcoin income generation business.

That segment, which relies on derivatives and options strategies, has become a growing contributor to revenue.

The company now expects full-year revenue of 8.9 billion yen ($57.8 million), up 31% from its prior forecast, while operating income is projected at 6.3 billion yen ($41 million), representing a 33.8% increase.

Metaplanet cited more diversified funding, including the issuance of Series B perpetual convertible preferred stock and access to a $500 million credit facility, as key drivers of the upward revision.

Metaplanet Targets Strong 2026 Growth Despite Share Price Drop

Looking ahead, Metaplanet forecast revenue of 16 billion yen ($104 million) and operating income of 11.4 billion yen ($74 million) for fiscal 2026, with the Bitcoin income generation unit expected to account for the bulk of that growth.

Shares of Metaplanet listed in Tokyo fell 7.03% on Monday to 476 yen, while the company’s US-traded shares closed higher on Friday.

Last month, Metaplanet shareholders approved five proposals at an extraordinary meeting, clearing the way for two new classes of preferred shares designed to fund Bitcoin purchases while delivering fixed monthly and quarterly dividends to investors.

The Tokyo-listed company is now positioned to raise capital through dividend-paying securities rather than further diluting common stockholders.

The post Japan’s Metaplanet Takes $680M Accounting Hit on Bitcoin Holdings appeared first on Cryptonews.

Gold’s rally is showing little sign of slowing as global markets head into 2026 with investors increasingly looking for refuge in traditional safe-haven assets amid geopolitical uncertainty.

According to Gracy Chen the CEO of crypto exchange Bitget says gold continues to act as “the world’s ultimate insurance policy,” as demand remains firm while broader financial markets adjust to shifting macroeconomic risks.

“Technically, the market is still in expansion mode,” Chen said pointing to Fibonacci extension levels that suggest gold could climb toward the $5,325–$5,400 range in the months ahead.

She added that strong buying interest holding around $4,830 indicates the current move is part of a sustained trend rather than a topping pattern.

Gold Remains the Anchor in Uncertain Markets

Gold has benefited during periods of heightened global instability and Chen believes the current environment will continue to support its role as a defensive asset.

With many investors reassessing risk exposure across equities and emerging markets, the precious metal is once again being positioned as a portfolio hedge against inflation, geopolitical shocks and currency volatility.

The resilience of demand at key technical support levels suggests that gold’s rally is being driven by structural factors rather than short-term speculation.

Bitcoin Undervalued Despite Macro Headwinds

Chen also drew parallels between gold’s trajectory and Bitcoin’s outlook arguing that the world’s largest cryptocurrency remains undervalued relative to its long-term potential.

“Bitcoin is on a similar trajectory considering it is an undervalued asset currently,” she said.

While Bitcoin remains sensitive to macroeconomic events Chen highlights several forces that could support an increasingly bullish breakout over the next year.

ETF Inflows and US Regulation Fuel Bullish Setup

The key catalysts Chen points to continued institutional demand through spot Bitcoin ETFs which have provided steady inflows and reinforced Bitcoin’s growing role in mainstream portfolios.

She also notes that Bitcoin volatility has declined compared to major tech stocks showing maturation in the asset class.

In the policy arena ongoing progress on a US crypto market structure bill could also provide greater regulatory clarity, potentially unlocking further institutional participation.

Bitcoin Could Reach $180K by End of 2026?

Chen believes Bitcoin’s current market cycle may also be diverging from historical norms with structural adoption and regulatory momentum creating conditions for sustained upside.

“If these forces persist Bitcoin has a credible path toward $150,000–$180,000 by the end of 2026,” she said.

Traditional Safety Meets Digital Upside

Chen’s outlook shows a broader theme emerging across global markets: investors are increasingly balancing traditional stores of value like gold with digital alternatives such as Bitcoin.

As geopolitical risks continue to linger and financial systems evolve both assets may continue to benefit from their roles as hedges—one rooted in centuries of history – the other driven by institutional adoption and technological change.

The post Bitget’s Gracy Chen Says Gold’s Bull Run Isn’t Over — Bitcoin May Be Undervalued appeared first on Cryptonews.

Crypto markets entered the new week on the back foot as a wave of macro uncertainty sparked heavy liquidations across major digital assets.

After trading in a tight range over the weekend, prices slid during early Asian hours, triggering more than $550 million in leveraged long liquidations, according to market data cited by QCP Asia.

Bitcoin briefly dipped to the $86,000 level before stabilizing, while Ethereum fell toward the $2,785 area.

The pullback stood in contrast to traditional safe havens, with gold and silver extending their recent rally as investors rotated into lower-risk assets.

Tariff Threats, Shutdown Fears, and FX Uncertainty Weigh on Markets

Market participants point to a cluster of macro developments driving the move, according to QCP.

Chief among them were comments from President Donald Trump on the possibility of imposing 100% tariffs on Canadian imports, renewed concern over a looming partial shutdown of the US government, and ongoing uncertainty around potential US-Japan coordination to arrest further weakness in the yen.

Currency markets remain a key pressure point. A “rate check” on USD/JPY by the New York Fed late last week signaled growing sensitivity to yen depreciation, with the 160 level widely viewed as a threshold that could prompt intervention.

While the pair has since pulled back, it continues to trade near two-month highs around 154, prompting investors to unwind short-yen positions rather than risk sudden policy action.

US domestic politics are adding another layer of tension. Although broader risk sentiment found some relief after Canadian Prime Minister Mark Carney said Ottawa has no plans to pursue a free trade deal with China, fiscal negotiations in Washington remain unresolved.

House Republicans have advanced spending bills that include roughly $64.4 billion for border security and the Department of Homeland Security, while Senate Democrats have indicated they will block the measures.

With current government funding set to expire on January 30, failure to reach an agreement would result in a partial shutdown.

Markets appear to be taking that risk seriously. Polymarket odds currently imply roughly a 75% chance of a shutdown by January 31, a dynamic that echoes last autumn’s fiscal standoff, which coincided with a sharp drawdown in crypto prices.

Bitcoin Options Signal Rising Downside Protection as Volatility Climbs

Derivatives markets are already reflecting a more cautious stance. Put skews and implied volatility have risen across maturities, with traders rolling downside protection in bitcoin options from the 88,000 level toward 85,000, according to QCP.

Alongside ongoing geopolitical and fiscal headlines, markets face a busy week that includes major technology earnings and a Federal Reserve policy decision.

While the Fed is expected to hold rates steady, investors will be watching closely for any shift in Chair Jerome Powell’s guidance.

“With multiple macro risks unresolved, crypto prices are likely to chop around in the near term, pending greater clarity, particularly around the risk of a US government shutdown,” QCP said.

The post Macro Fears Trigger $550M Crypto Liquidations – What’s Really Going On? appeared first on Cryptonews.

Digital asset investment products saw sharp outflows last week with investors pulling $1.73 billion, the largest weekly decline since mid-November 2025, according to CoinShares report authored by head of research James Butterfill.

CoinShares notes that the wave of redemptions reflects persistent bearish sentiment, driven by fading expectations for interest rate cuts, negative price momentum and growing disappointment that digital assets have not yet benefited from the broader “debasement trade.”

Outflows were heavily concentrated in the United States, which accounted for nearly $1.8 billion, while sentiment was more mixed across Europe and Canada.

Bitcoin and Ethereum Lead Weekly Redemptions

Bitcoin products recorded outflows of $1.09 billion, the largest since mid-November 2025, showing that investor confidence has yet to recover following the October 2025 price crash.

Ethereum followed with $630 million in outflows while XRP investment products saw an additional $18.2 million exit the market — highlighting broad-based weakness across major assets.

Butterfill addes that minor inflows into short-Bitcoin products — totalling just $0.5 million — suggest bearish positioning remains limited, but overall sentiment has not meaningfully improved.

Solana was also a notable exception attracting $17.1 million in inflows and bucking the wider negative trend. Smaller altcoins such as Binance-linked products ($4.6 million) and Chainlink ($3.8 million) also posted modest gains.

Regional Flows Diverge Outside the US

While the US dominated the outflows, CoinShares reports that other regions saw investors take advantage of price weakness to add to long positions.

Switzerland recorded inflows of $32.5 million, Canada added $33.5 million, and Germany saw $19.1 million in inflows. Sweden and the Netherlands both posted smaller outflows of $11.1 million and $4.4 million respectively.

The divergence suggests that while US-based investors are reducing exposure some international allocators continue to view pullbacks as entry opportunities.

Long-Term Adoption Model Points to $317K Bitcoin Floor by 2029

Despite near-term bearishness in fund flows CoinShares Research maintains a bullish long-term outlook based on its updated adoption-based valuation model.

The framework models Bitcoin as a global savings asset competing with deposits, gold, real estate, and bonds. Using conservative assumptions — including sub-1% disposable income allocation and a reduced flow-to-market-cap multiple of 3.5x — CoinShares projects Bitcoin ownership could rise from roughly 560 million owners in 2025 to 1.16 billion by 2029.

Under this scenario Bitcoin’s valuation floor could reach approximately $317,000 by 2029 implying a potential 3.2x return from mid-November 2025 levels, notes the firm.

CoinShares stressed that the model is designed to estimate price-supporting bottoms rather than speculative cycle peaks with ETF growth and emerging-market adoption continuing to accelerate global participation.

The post Crypto Funds Shed $1.73B as Bearish Sentiment Deepens: CoinShares appeared first on Cryptonews.

Changpeng “CZ” Zhao confirmed he has no plans to return to Binance despite receiving a presidential pardon from Donald Trump three months ago.

Speaking at his first World Economic Forum appearance in Davos, the former CEO detailed his prison experience, the pardon process, and his current government advisory work on crypto regulation.

“Much more freedom, much more liberated,” Zhao said about the October 20 pardon’s psychological impact. “I was a free man before but with a felon status. But now I’m a real free man.“

From Prison to Presidential Pardon: CZ’s Journey

Zhao served four months in federal prison after pleading guilty in November 2023 to violating the Bank Secrecy Act.

His first day involved a “pretty brutal” strip search where authorities required him to “strip naked,” “lift your balls,” and “flip over, spread your butt cheeks, cough three times.“

His first cellmate was serving 30 years for double murder. “I’m not usually very emotionally stable,” Zhao said about coping.

“So I just thought, at four months, I just got to get through it, right?” Despite legal advice that no one in U.S. history had been jailed for a single Bank Secrecy Act violation, he received prison time while most bank CEOs get deferred prosecution agreements.

Media speculation in March 2025 prompted Zhao to apply after major publications suggested he should receive one.

“It was actually all the media that says I might be trying to get a pardon,” he explained. “If all the media like you know Wall Street Journal, Bloomberg, New York Times are saying that I should be getting a pardon,” he decided to apply.

He never met Trump directly. “I never got in front of Trump,” Zhao said, noting the process remained “like a black box. I don’t know what the process is.”

He was “about 30, 40 feet away from him” during a Davos session but never shook hands. “I just waited and waited and waited and then suddenly it happened.“

Current Focus: Education, Investment, and Government Advisory

Zhao now focuses on Giggle Academy, a free education platform, while working with YZLabs and mentoring BNB Chain founders.

“I also spent quite a lot of a lot of time talking with about a half about a dozen governments about you know how to regulate crypto, how to do tokenization, how to do stable coins,” he said.

He firmly ruled out returning to Binance. “I haven’t really needed to go back. I didn’t really want to,” he stated.

“I don’t think it’s good for me to go back. I think we should leave room for strong leaders to grow.” His involvement today is minimal, revealing, “When I want to give them advice, I just write it on Twitter.“

When asked about potential refunds of Binance’s $4.3 billion settlement, Zhao said, “If we get any refund, we will be investing that in America, to show our appreciation,” though he clarified he had not requested one.

CZ Predicts 2026 Bitcoin “Super Cycle” Breaking Historical Pattern

Notably, Zhao predicted a “super cycle” in 2026 that could break Bitcoin’s four-year pattern. “I have very strong feelings that you will probably be a super cycle” in 2026, he told CNBC.

“Normally, Bitcoin follows four year cycles historically,” Zhao explained.

“If you look at historic data like every four years you know there’s an all-time high and then there’s a drop. But I think this year given the US being so pro crypto and every other country is kind of following, I do think we will see this we will probably break the four year cycle.“

Zhao doesn’t trade despite his holdings. “I don’t trade at all,” he said. “I just hold Bitcoins. I hold BNB. I don’t do day trading.” On long-term predictions, he stated, “If you look at a 10, five, 10 year horizon, it’s very easy to predict. We’re going to go up.“

Corruption Allegations and Political Backlash

The pardon has drawn fierce opposition from Democratic lawmakers, who question its timing and the circumstances surrounding it.

Senator Elizabeth Warren wrote that “the convergence of Mr. Zhao’s pardon application and Binance’s financial entanglements with the President’s family presents urgent concerns regarding the integrity of our justice system.“

Representative Maxine Waters also called it “an appalling but unsurprising reflection of his presidency.“

Despite these allegations, Trump claimed he doesn’t know who Zhao is, calling the case “a Biden witch hunt.”

White House press secretary Karoline Leavitt also defended the decision, noting the case had “no allegations of fraud or identifiable victims.“

In response to mounting criticism, Zhao’s attorney, Teresa Goody Guillén, dismissed corruption allegations as “false statements” based on “fundamental misunderstandings” of blockchain technology, arguing that Zhao “never should have been prosecuted.“

While CZ confirmed he will not be returning the exchange, reports, however, indicate that Binance is exploring options to re-enter the U.S. market.

The post CZ Declares He Won’t Return to Binance After Trump Pardon – What’s Going On? appeared first on Cryptonews.

A severe Arctic blast sweeping across the United States has forced Bitcoin miners to take more than 110 exahashes per second of computing power offline, temporarily slowing block production to 12 minutes as operators curtail operations to ease strain on regional power grids, according to The Miner Mag.

The widespread shutdowns mark one of the largest coordinated mining curtailments since the 2021 Texas grid crisis, with FoundryUSA’s hashrate dropping nearly 60% since Friday.

Real-time data from Mining Pool Stats shows FoundryUSA’s hashrate fell from approximately 340 EH/s to roughly 242 EH/s over the weekend, while Luxor recorded a similar decline from about 45 EH/s to around 26 EH/s.

Smaller reductions appeared across Antpool and Binance Pool, though these pools serve less U.S.-concentrated operations, suggesting total curtailments may exceed the initial 110 EH/s estimate, The Miner Mag reported.

Grid Operators Report Stability Despite Extreme Cold

The hashrate pullback coincided with a severe Arctic air mass pushing subfreezing temperatures, snow, and ice deep into the central and eastern United States.

Grid operators across multiple states issued conservation alerts as heating demand surged, yet Texas’s grid operator ERCOT reported on Friday that conditions remained stable despite the cold weather.

The stability contrasts sharply with February 2021, when Winter Storm Uri triggered widespread outages and prolonged blackouts across the state.

Since that crisis, Texas has added substantial large-load capacity, much of it tied to Bitcoin mining and data center operations.

Unlike traditional industrial loads, many Bitcoin miners participate in demand response programs, allowing them to rapidly curtail consumption during periods of grid stress.

As noted by The Miner Mag, this flexible-load model represents a dynamic shift from the 2021 scenario, when such infrastructure did not exist to support grid balancing during extreme weather events.

Singapore-based miner Bitdeer, which operates over 293,000 rigs globally, including facilities in Texas, said in a statement that it does not anticipate major disruptions from the storm.

A company spokesperson explained that the Electric Reliability Council of Texas considers Bitcoin miners “large flexible loads,” meaning they can curtail electricity usage on request, unlike other industrial users with firm electrical demands.

“Bitdeer stands ready to fully support the grid should supply constraints occur,” the spokesperson added.

The curtailments come as Bitcoin’s seven-day average network hashrate had already declined to about 992 EH/s, down roughly 13.7% from the all-time high of above 1.15 ZH/s reached in October, according to data reported by The Miner Mag last week.

The moderation follows Bitcoin’s market price falling nearly 30% from its October peak, prolonging pressure on mining economics by keeping competition for block rewards elevated even as revenues per unit of computing power fell.

Storm Threatens 60 Million People Across 1,800 Miles

The massive winter storm extends for 1,800 miles from far west Texas to the mid-Atlantic coast, threatening to affect upwards of 60 million people across more than a dozen states, according to AccuWeather.

AccuWeather Senior Vice President Evan Myers warned that the combination of snow, ice, and bitter cold across such a large area would “stall daily life for days,” with some power outages lasting through extended periods as Arctic air charges in behind the storm.

About 60 million people will experience icing conditions, with potentially 1 million people without power for an extended period, AccuWeather estimated.

AccuWeather Chief Meteorologist Jon Porter noted that many areas hit hard by Hurricane Helene in September 2024 still have temporary power lines that “may come down more easily than permanent lines,” potentially stretching recovery resources and personnel to the limit across North Carolina and other affected states.

The storm’s intensity has already prompted thousands of flight cancellations across the region as airlines deal with displaced aircraft and crews.

AccuWeather Storm Warning Meteorologist William Clark cautioned that “entire supply chains may break down from prolonged days of extensive interstate closures,” warning that critical supplies, including pharmaceuticals and basic necessities, may become scarce in the hardest-hit areas.

The United States controls nearly 38% of the global Bitcoin hashrate according to estimates from Hashrate Index, making American mining operations critical to network security.

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Ethereum co-founder Vitalik Buterin has publicly walked back a position he held for nearly a decade, showing Ethereum’s renewed stance about self-sovereignty, verification, and the future role of cryptography.

In a recent post on X, Buterin said he no longer agrees with a 2017 statement in which he dismissed the idea of users fully validating blockchains themselves as a “weird mountain man fantasy,” arguing that both technology and real-world experience have reshaped his view.

The comment revisits a long-running debate in blockchain design that dates back to Ethereum’s early years.

What Changed Since 2017? ZK Proofs Rewrite a Classic Blockchain Argument

In 2017, Buterin sparred publicly with blockchain theorist Ian Grigg over whether blockchains should store full state, such as account balances and smart contract data, directly on-chain.

Grigg argued that chains only needed to record transaction ordering, with state reconstructed locally and discarded.

Buterin was a vehement opponent of such a design at the time, citing that such a design would require users to constantly rerun the whole transaction history or utilize third-party RPC services to get the current state.

At the time, Buterin claimed that Ethereum was better compromised with the design where state roots are pegged to block headers.

Using Merkle proofs and an honest majority assumption for proof-of-work or proof-of-stake, users would be able to check a certain value without going through a single intermediary.

Making the entire chain completely self-validating, he said, was in theory attractive but computationally impractical to ordinary users, unless the network grossly constrained its capacity.

The difference, as explained by Buterin, is the maturation of zero-knowledge cryptography, specifically zk-SNARKs.

These cryptographic evidences enable a user to prove that a group of calculations has been done right without re-running all the processes or showing the data behind the scenes.

Why Vitalik Buterin Now Sees ZK-SNARKs as Ethereum’s Safety Net

To him, it is like finding an inexpensive, one-size-fits-all solution after years of trade-off disputes. He claimed that with zk-SNARKs, Ethereum could obtain the security of full verification without necessarily subjecting users to prohibitive costs.

Buterin said this advance allows Ethereum to revisit trade-offs that were once accepted reluctantly, especially around scalability, decentralization, and verification. He also acknowledged that his earlier thinking relied too heavily on idealized assumptions.

In practice, he noted, networks experience outages, latency spikes, service shutdowns, and regulatory or social pressure that can push intermediaries to censor applications or users. In those moments, reliance on third parties or developer intervention can become a single point of failure.

That perspective underpins his renewed support for what he described metaphorically as the “mountain man’s cabin,” a fallback option that allows users to directly interact with the chain when everything else breaks.

Inside Ethereum’s Growing Push Toward ZK-Based Scaling

There has been a growing focus on Zk-SNARKs in the roadmap of Ethereum, especially in the form of zero-knowledge rollups.

These layer-2 networks reduce fees significantly by offloading thousands of transactions and making a single cryptographic proof to Ethereum.

Even projects like zkSync, StarkNet, Scroll, and others are already based on these methods, but with various trade-offs in the size of the proof, transparency, and the cost of calculation.

Mid-2025 community proposals stated that off-chain personal data and using cryptographic proofs might be a solution to align Ethereum with European rules on data protection.

ZK-SNARKs were mentioned as a method of enabling validators to verify that data is correct without access to it, minimizing on-chain access.

On the protocol layer, Buterin has additionally admitted that there are certain remnants of legacy design that now pose a bottleneck to Ethereum’s ambitions to go zero-knowledge.

In late 2025, he proposed removing the modular exponentiation precompile, a feature he originally introduced, after it proved to be a major bottleneck for generating zk proofs.

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Blockchain investigator ZachXBT has alleged that the person responsible for a multimillion-dollar theft of cryptocurrency from US government-controlled wallets is the son of the chief executive of a firm contracted to safeguard seized digital assets.

In a series of posts detailing his findings, ZachXBT claimed that an individual known online as “Lick,” whose real name he identified as John Daghita, siphoned tens of millions of dollars in crypto from wallets linked to the US government.

He further alleged that Daghita is the son of Dean Daghita, president and chief executive of Command Services & Support (CMDSS), a company contracted by the US Marshals Service to handle certain seized cryptocurrencies.

CMDSS Awarded US Marshals Contract to Handle Non-Mainstream Seized Crypto

Public records show that CMDSS, based in Haymarket, Virginia, was awarded a contract in October 2024 to assist the Marshals Service with the custody and disposal of so-called “Class 2–4” digital assets.

These include tokens that are not supported by major centralized exchanges and often require bespoke handling.

The allegations have not been tested in court, and no criminal charges have been announced. CMDSS did not respond to requests for comment at the time of publication.

ZachXBT’s claims expand on an investigation he published on Jan. 23, which linked the same online persona to more than $90 million in suspected illicit crypto activity.

That probe traced funds back to a U.S. government wallet associated with assets seized from the 2016 Bitfinex hack.

The investigation gained traction after a recorded dispute in a Telegram group chat between “Lick” and another individual.

The exchange, described as a “band-for-band” argument, involved both parties attempting to demonstrate control over large crypto balances.

During the exchange, “Lick” screen-shared an Exodus wallet displaying a Tron address holding roughly $2.3 million, followed by a live transfer of about $6.7 million in ether.

By the end of the session, approximately $23 million had been consolidated into a single wallet.

By tracing transactions backward, ZachXBT linked that wallet to an address that received $24.9 million from a US government-controlled wallet in March 2024.

The government address was tied to funds seized in the Bitfinex case. ZachXBT had previously flagged unusual activity in October 2024, when around $20 million was drained from similar government wallets.

Most of those funds were returned within 24 hours, though roughly $700,000 routed through instant exchanges was not recovered.

CMDSS Contract Faced Prior Scrutiny as GAO Rejected Protest

CMDSS’s role as a government contractor has drawn scrutiny before.

After losing the Marshals Service contract, Wave Digital Assets filed a protest with the Government Accountability Office, arguing that CMDSS lacked proper regulatory registrations and raising concerns over potential conflicts of interest involving a former Marshals Service official.

The GAO ultimately denied the protest.

Questions around crypto custody have also been raised more broadly. A February 2025 CoinDesk report said the Marshals Service struggled to account for its digital asset holdings, citing weak inventory controls and an inability to estimate its bitcoin reserves.

As reported, illicit cryptocurrency addresses received a record $154 billion in 2025, a sharp increase from the year before.

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The UK’s Financial Conduct Authority (FCA) has moved into the final stage of consultations on a sweeping set of proposed crypto regulations, as it advances the government’s broader plan to bring digital assets firmly within the country’s regulatory perimeter.

In a recent statement, the FCA said it is seeking feedback on 10 proposed rules, describing the move as the “final step” in its consultation process.

The proposals are designed to shape how crypto firms operate in the UK, while aligning the sector more closely with standards applied across traditional financial markets.

FCA Says New Crypto Rules Aim to Build Trust Without Eliminating Risk

“These proposals continue our progress towards an open, sustainable and competitive crypto market that people can trust,” the regulator said.

At the same time, the FCA stressed that crypto investing will always carry risk, and regulation is intended to improve transparency and consumer understanding rather than eliminate volatility altogether.

The consultation package spans a wide range of market activity.

It includes proposed rules on business conduct standards, restrictions on using credit to purchase crypto, regulatory reporting requirements, asset safeguarding, and how retail collateral is treated when borrowing digital assets.

Stakeholders have until March 12 to submit feedback.

The proposals were first outlined in December, when the FCA signaled its intention to regulate crypto in a manner broadly consistent with conventional financial services.

Since then, the regulator says it has made “significant progress” in refining the framework as part of the government’s crypto roadmap.

Earlier this month, the FCA also published an indicative timeline for a new licensing regime covering crypto asset service providers.

Under the current plan, the application window for firms seeking authorization is expected to open in September 2026, though the regulator noted that details will be confirmed at a later date.

Once in force, the licensing regime would impose tighter oversight on crypto businesses operating in the UK, requiring FCA approval and ongoing compliance with regulatory standards.

UK Weighs Ban on Crypto Donations

As reported, the UK government is considering a ban on cryptocurrency donations to political parties, a move that could directly affect Reform UK, which recently became the first party in the country to accept digital assets.

The proposal is under review as part of the upcoming Elections Bill, according to people familiar with internal discussions, though officials have yet to formally confirm the plan.

The debate follows Reform UK’s push to present itself as Britain’s most crypto-friendly party under the leadership of Nigel Farage.

Furthermore, the UK government has moved a step closer to overhauling how decentralized finance activity is taxed, backing a new framework that would spare users from triggering capital gains each time they deposit tokens into lending protocols or liquidity pools.

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Japan’s Financial Services Agency is considering adding cryptocurrencies to the list of assets eligible for spot exchange-traded fund (ETF) products. Nikkei reported Monday that Japan would likely approve its first set of spot crypto ETFs as early as 2028. If approved, this would end the agency’s ban on spot crypto ETFs.

This further extends the expected timeframe for a potential crypto ETF launch in Japan. A KPMG Japan executive claimed in August 2025 that a Bitcoin ETF launch would likely be delayed until 2027.

Besides, Hajime Ikeda, the Executive Officer of Nomura Holdings, pointed to a survey at the time, noting that over 60% of Japanese investors express a desire to invest in cryptoassets “in some form or other.”

That said, the recent move by the Japanese regulator to launch spot crypto ETFs would address growing investor demand for access to crypto.

Nomura, SBI Holdings Poised to Create Japan’s First Crypto ETFs

Per the Nikkei report, Japan’s largest asset manager Nomura Holdings and financial services giant SBI Holdings have been developing related ETF products that await approval for listing on the Tokyo Stock Exchange.

If approved, the crypto ETFs would allow investors to trade digital assets similar to stocks or gold ETFs.

Last year, SBI Holdings confirmed plans to launch its XRP ETFs upon regulatory greenlight. In a presentation published in August, SBI revealed plans to launch two ETFs. The first product is a Gold and Crypto Assets ETF that will invest 49% of its assets in Bitcoin (BTC), while the second will be a Bitcoin and XRP ETF that will offer exposure to these two tokens.

The U.S. and Hong Kong already approved their first spot crypto ETFs in 2024.

Japan Finance Minister Supports Crypto Trading With Stock Exchanges

Japan’s Finance Minister Satsuki Katayama recently touted that 2026 would be the “digital year,” expressing support to crypto trading at stock exchanges.

Per Japanese crypto news site Coinpost, Katayama pointed to how crypto investment products have gained traction in the West.

“In the U.S., through ETF structures, they have spread as a means of hedging against inflation, and similar efforts are expected in Japan,” she said.

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Ethereum is more likely to revisit the $2,000 level than stage a decisive move back above $4,000, according to Bloomberg Intelligence Senior Commodity Strategist Mike McGlone.

In a recent post on X, McGlone pointed to persistent range-bound trading and rising macro risks weighing on the asset.

He said Ether has remained trapped in a $2,000–$4,000 range since 2023, but momentum appears to be shifting toward the lower end.

Rising Market Volatility Could Keep Ethereum Below $2,000

McGlone argued that the risks of Ethereum staying below $2,000 are greater than the chances of a sustained breakout above $4,000, especially if volatility in global equity markets rebounds.

His accompanying chart highlights repeated failures near the upper boundary of the range, alongside multiple tests of support closer to $2,000.

McGlone’s view contrasts with a more optimistic narrative circulating among crypto-focused analysts.

BullifyX, a widely followed market commentator, recently compared Ethereum’s long-term price structure to that of gold.

According to BullifyX, Ethereum is undergoing an extended accumulation phase characterized by gradual higher lows and compressed price action, a pattern that historically preceded strong rallies in traditional safe-haven assets.

The analyst described Ethereum’s current behavior as a period of quiet positioning rather than fading demand, suggesting that prolonged consolidation could ultimately lay the groundwork for a sharp upside move once conditions shift.

Meanwhile, Ethereum co-founder Vitalik Buterin has framed 2026 as more than a technical milestone.

In a recent post, he said the community is entering a phase focused on restoring personal autonomy and improving user experience, arguing that earlier compromises made in pursuit of adoption no longer need to define the network’s future.

“2026 is the year that we take back lost ground in terms of self-sovereignty and trustlessness,” Buterin said in an X post.

Together, record activity, falling fees, and rising participation suggest Ethereum is entering a new phase, one where scale no longer comes at the expense of accessibility.

Ethereum Foundation Makes Quantum-Resistant Security a Strategic Priority

As reported, the Ethereum Foundation has elevated post-quantum security to a core strategic focus, forming a dedicated Post Quantum team and committing $2 million to the effort.

Announced by Ethereum researcher Justin Drake, the initiative will be led by Thomas Coratger alongside Emile, a contributor to leanVM.

Drake said the foundation has been working on quantum-resilience research quietly for years, dating back to early discussions in 2019, before formally making it a top-level priority.

The foundation’s plan spans research, development, and ecosystem coordination.

This includes new developer calls focused on user-facing security, two $1 million cryptography prize programs, active multi-client post-quantum testing networks, and a series of global workshops aimed at accelerating collaboration and readiness across the Ethereum ecosystem.

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Coinbase is weighing a potential equity investment in South Korea’s Coinone, as the country’s third-largest crypto exchange explores options that include selling part of its controlling shareholder’s stake, according to local media and industry sources.

A local outlet reported Sunday that Coinone has put itself on the market and is discussing scenarios tied to Chairman Cha Myung-hoon’s holdings, which total 53.44% through his personal stake and his holding company, The One Group.

Speculation around a sale picked up after Cha returned to frontline management just four months after stepping down as chief executive, a move that some observers read as preparation for a stake transaction.

Tech Upgrades Accelerate Even As Losses Weigh On Valuation

Coinone, meanwhile, said Cha stepped back in to sharpen its technological edge as it nears a double-digit market share, building out areas such as artificial intelligence.

Attention has also turned to Com2uS, the gaming group that accumulated a 38.42% stake in Coinone between 2021 and 2022.

Coinone’s continued losses have weighed on its book value, which Seoul Economic Daily put at 75.2B won, or about $52M, at the end of the third quarter, below Com2uS’s reported acquisition cost.

Against that backdrop, industry sources say Coinbase plans to visit South Korea this week and meet major local players, including Coinone, as it looks for partners to build products that fit Korean rules.

Korea’s Crypto Exchange Sector Sees Surge In Deal Activity

The talks come as dealmaking accelerates across South Korea’s crypto exchange sector, with traditional finance and big tech circling licensed platforms and won trading rails.

Regulators recently cleared Binance’s long-running effort to take over GOPAX, and the market has since seen a rush of takeover interest.

Naver Financial agreed to acquire Dunamu, the operator of market leader Upbit, in an all-stock deal, while local media have also reported Mirae Asset Securities is pursuing Korbit.

Coinone has tried to differentiate on product as well as ownership, launching what it called the country’s first flexible Bitcoin staking service in Aug. 2025, letting users earn rewards without locking up their holdings.

Coinone says discussions remain open-ended, and it has not settled on a structure, a timeline or a buyer. Still, the prospect of a Coinbase tie-up lands at a moment when Korea’s exchange map is already shifting, and when global players are watching for a way in.

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The cryptocurrency market faced a sharp correction in the early hours of January 26, with BTC erasing its entire monthly progress. After peaking at $97,000 on January 14, Bitcoin slid approximately 10.9% to briefly dip below the $87,000 mark. This volatility has pushed the January return to -0.5%, reflecting a broader “risk-off” sentiment across the digital asset space. The pullback is being attributed largely to rising uncertainty around U.S. government shutdown, alongside broader risk-off sentiment across global markets.The GameFi sector bore the brunt of the sell-off, dropping nearly 5%, led by double-digit losses in Axie Infinity (AXS). While Ethereum fell below $2,900, some assets showed resilience; notably, River (RIVER) surged 30% and Beam (BEAM) rose 19%, suggesting that despite the macro-level decline, specific project catalysts continue to drive isolated pockets of growth.

But what else is happening in crypto news today? Follow our up-to-date live coverage below.

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Bitcoin dipped under $88,000 as Asia opened to mixed trade, with investors leaning into safety and pushing gold to a record above $5,000 an ounce.

In China, stocks moved in different directions. The Shanghai index rose 0.12%, and China A50 gained 0.49%, while the SZSE Component slid 0.74% and DJ Shanghai eased 0.09%. Hong Kong’s Hang Seng edged up 0.04%.

Gold extended a rally that has reshaped the commodity market. Spot gold rose 1.79% to $5,071.96 an ounce by 0159 GMT after touching $5,085.50 earlier, and US gold futures for February delivery gained 1.79% to $5,068.70.

Market snapshot

• Bitcoin: $87,781, down 1.3%
• Ether: $2,867, down 2.6%
• XRP: $1.89, down 0.6%
• Total crypto market cap: $3.04 trillion, down 1.4%

Greenland Tariff Threat Rolled Back As Trade Risks Linger

Investors have treated the metal as a refuge through shifting policy expectations and geopolitical stress. Prices surged 64% in 2025, and they have gained more than 17% this year, supported by safe-haven demand, expectations of easier US monetary policy, central bank buying and ETF inflows.

President Donald Trump’s trade threats stayed in focus. He abruptly stepped back on Wednesday from threats to impose tariffs on European allies as leverage to seize Greenland, and he said over the weekend he would impose a 100% tariff on Canada if it followed through on a trade deal with China.

He has also threatened to hit French wines and champagnes with 200% tariffs in an apparent effort to pressure French President Emmanuel Macron into joining his “Board of Peace” initiative.

Some observers fear the board could undermine the United Nations’ role as the main global platform for conflict resolution, though Trump has said it will work with the UN.

US Futures Ease After Volatile Week Marked By Trade Risks

Currency markets also turned volatile. The yen jumped to more than a two-month high on speculation that coordinated intervention by US and Japanese authorities could be imminent, and Tokyo’s top currency diplomat left that prospect open while keeping markets guessing.

The yen rose as much as 1.2% to 153.89 per dollar, its strongest since November. The euro hit a four-month high of $1.1898 and was last up 0.4% at $1.18665, as traders trimmed dollar positions ahead of the Federal Reserve meeting and watched for a possible announcement by the Trump administration of a new Fed chairman.

Wall Street faces another busy week after a rocky stretch. US stock index futures fell modestly on Sunday evening as markets braced for the Fed decision on Wednesday and a wave of corporate earnings, after last week’s pullback tied to geopolitical strains and trade uncertainty.

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Entropy, a decentralized crypto custody startup backed by Andreessen Horowitz (a16z), is winding down and plans to return remaining capital to investors, according to founder and chief executive Tux Pacific.

Pacific wrote on X over the weekend, “I am winding-up Entropy.” They added, “After four years, several pivots, and two rounds of layoffs, I’ve decided to wind-up Entropy and return capital to our investors.”

Crypto Automation Bet Fell Short After Investor Feedback

The shutdown follows a late-stage push in 2025 to reposition the company around a crypto automations platform, which Pacific described as “basically n8n/zapier/etc for crypto,” with automated signing via threshold cryptography, secure computation using trusted execution environments, and “deep AI integrations.”

That product direction still failed to clear a venture-style growth bar. “After an initial feedback request revealed that the business model wasn’t venture scale, I was left with the choice to find a creative way forward or pivot once more,” Pacific wrote.

Entropy first drew attention in 2022 when it raised $25M in a seed round led by a16z crypto, with participation including Dragonfly Capital, Coinbase Ventures, Robot Ventures, Ethereal Ventures, Variant and Inflection. The company had earlier raised a $1.95M pre-seed round.

Founder Looks Beyond Digital Assets Toward Pharmaceuticals Research

At launch, Entropy pitched itself as a decentralized alternative to custody providers such as Fireblocks and Coinbase, leaning on cryptographic approaches like multi-party computation to let users control how funds could move, including rule-based constraints.

Pacific also thanked a16z crypto and Guy Wuollet for helping steer the wind-down, calling their guidance “invaluable.”

The closure lands in a tougher funding climate for early-stage crypto startups. Crypto venture deal count fell about 60% year-on-year in 2025, dropping to roughly 1,200 transactions from more than 2,900 in 2024.

Next, Pacific said they plan to step back before deciding what comes after Entropy. “My time in crypto might be coming to an end, as I feel myself drawn specifically into pharmaceuticals,” they wrote, adding they want to work on hormone delivery and validate research on new estradiol drug formulations.

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