Bitcoin is trading near $87,700, down about 1% on the day, yet Robert Kiyosaki remains unmoved by short-term price swings. The Rich Dad Poor Dad author says he continues buying Bitcoin and Ethereum regardless of volatility, arguing that price matters less than the direction of the global financial system.

In a recent post, Kiyosaki pointed to two forces shaping his strategy: the rising US national debt, now above $38.4 trillion, and the steady erosion of the dollar’s purchasing power. From his perspective, daily price movements are a distraction.

As debt expands and deficits deepen, scarce assets gain relevance. As he put it bluntly, he does not worry about market fluctuations because “the national debt keeps going up and the purchasing power of the US dollar keeps going down.”

That logic explains why Kiyosaki groups Bitcoin with gold and silver, often referring to BTC as “digital gold.” While he has long favored physical metals, he now sees Bitcoin and Ethereum as modern extensions of the same hedge against monetary dilution. His long-term outlook remains bold, with Bitcoin potentially reaching $1 million over the coming years or decade.

Institutional Credibility Weakens as Investors Seek Bitcoin Hedges

Kiyosaki’s stance reflects deep skepticism toward traditional financial authorities. He has repeatedly criticized institutions such as the Federal Reserve and the US Treasury, arguing that policy decisions have fueled debt growth rather than long-term stability.

This view aligns with a broader investor shift. As inflation pressures, rising interest costs, and geopolitical uncertainty persist, capital has increasingly moved toward assets outside the traditional financial system. Bitcoin’s fixed supply of 21 million coins, with more than 19.98 million already in circulation, continues to attract investors who see scarcity as protection rather than speculation.

Bitcoin Price Prediction: $87K Base Forms as Trendlines Hint at a Springboard Move

While the long-term narrative remains intact, Bitcoin’s short-term chart sits at a critical junction. After pulling back from the $95,500–$96,000 zone, BTC is consolidating between $86,000 and $88,000, an area where multiple technical levels converge.

On the 4-hour chart, price is pressing against the lower boundary of a descending wedge while still respecting a rising long-term support line that has guided the broader uptrend since late 2025. Recent candles near $86,100 show long lower wicks, suggesting dip-buying rather than forced liquidation.

Momentum remains soft, with RSI hovering near 39–40, but it has begun to turn higher. A sustained hold above $88,000 would open a path toward $90,700 and $93,300, with a potential retest of $95,500. A break below $86,000 would delay that recovery and expose $84,300, without undermining the broader structure.

Taken together, Kiyosaki’s long-term conviction and Bitcoin’s developing technical base suggest the market is pausing, not peaking. For investors focused beyond short-term noise, this consolidation may be the kind of quiet reset that precedes the next expansion phase.

Bitcoin Hyper: The Next Evolution of BTC on Solana?

Bitcoin Hyper ($HYPER) is bringing a new phase to the BTC ecosystem. While BTC remains the gold standard for security, Bitcoin Hyper adds what it always lacked: Solana-level speed. The result: lightning-fast, low-cost smart contracts, decentralized apps, and even meme coin creation, all secured by Bitcoin.

Audited by Consult, the project emphasizes trust and scalability as adoption builds. And momentum is already strong. The presale has surpassed $31 million, with tokens priced at just $0.013635 before the next increase.

As Bitcoin activity climbs and demand for efficient BTC-based apps rises, Bitcoin Hyper stands out as the bridge uniting two of crypto’s biggest ecosystems. If Bitcoin built the foundation, Bitcoin Hyper could make it fast, flexible, and fun again.

The post Bitcoin Price Prediction: Rich Dad Poor Dad Author Kiyosaki Ignores Price Crash – Here’s Why He’s More Bullish Than Ever appeared first on Cryptonews.

Michael Saylor’s Strategy has expanded its Bitcoin treasury again, acquiring an additional 2,932 BTC for approximately $264.1 million during the period from Jan. 20 to Jan. 25.

The company disclosed that the purchases were made at an average price of $90,061 per bitcoin, inclusive of fees and expenses.

The update reinforces Strategy’s position as the largest corporate holder of Bitcoin globally, continuing its multi-year accumulation strategy that has become central to its balance sheet approach.

Total Bitcoin Holdings Reach 712,647 BTC

Following the latest acquisition, Strategy reported that it now holds a total of 712,647 BTC as of Jan. 25.

The company said its aggregate Bitcoin purchases total roughly $54.19 billion, with an average acquisition price of $76,037 per bitcoin. The figures highlight the scale of Strategy’s long-term bet on Bitcoin as a treasury reserve asset, accumulated across multiple market cycles.

Strategy’s growing holdings show its belief that Bitcoin represents a superior store of value over time, particularly amid concerns around currency debasement and global macro uncertainty.

Purchases Funded Through Share Sales Under ATM Program

Strategy disclosed that the recent Bitcoin purchases were funded through proceeds generated from the sale of shares under its at-the-market offering program.

During the Jan. 20–25 period, the company sold approximately 1.57 million shares of its Class A common stock, generating net proceeds of about $257 million. Strategy also issued roughly 70,201 shares of its variable rate preferred stock, raising an additional $7 million.

In total, the company generated about $264 million in net proceeds, which were then deployed toward Bitcoin accumulation.

The disclosure also shows that Strategy retains significant remaining capacity for future issuances, including billions of dollars available across multiple stock and preferred equity programs.

Corporate Bitcoin Accumulation Continues Into 2026

Strategy’s continued purchases come as institutional adoption of Bitcoin remains a major theme entering 2026, with more companies exploring crypto as a long-term balance sheet asset.

The firm has consistently framed Bitcoin as a scarce, inflation-resistant reserve that can outperform cash and traditional holdings over extended time horizons. While the strategy remains controversial due to Bitcoin’s volatility, Strategy has maintained its commitment to accumulation even during periods of market weakness.

With over 712,000 BTC now on its balance sheet, Strategy’s exposure to Bitcoin price movements is unmatched among public companies, making it a key bellwether for corporate crypto adoption.

As the company continues leveraging equity issuance to fund purchases, investors will closely watch how its aggressive treasury strategy evolves alongside broader market conditions in 2026.

The post Billionaire Michael Saylor’s Strategy Buys 2,932 Bitcoin for $264M appeared first on Cryptonews.

Strategy, led by Michael Saylor, bought 2,932 Bitcoin last week for $264M, continuing its treasury-focused BTC accumulation strategy.

The post Strategy acquires 2,932 Bitcoin at $90,000 appeared first on Crypto Briefing.

Crypto analyst Darkfost has highlighted reasons why the XRP price could soon witness a bullish reversal and potentially reach new local highs. This comes amid bearish sentiment in the market, which on-chain analytics platform Santiment said could set the stage for a reversal in the altcoin’s price.  

Why The XRP Price Could Soon See A Bullish Reversal 

In a CryptoQuant blog post, Darkfost stated that negative funding rates signal a potential XRP price reversal. The analyst noted that the altcoin is currently trading around 47% below its all-time high (ATH) set in July last year. Furthermore, the altcoin is said to have naturally entered a phase of distribution and correction after a gain of over 600% since November 2024. 

Darkfost assured that this type of movement is healthy after such a strong rally for the price. He further remarked that what stands out is the timing of the bearish consensus, as it did not form at the top but rather during a drawdown of more than 50%. Now, there are predominantly short positions on XRP, with funding rates on Binance mostly negative since December, indicating that leveraged short positions have the upper hand. 

The analyst noted that historically, the market tends to move against a late consensus. As such, while the accumulation of shorts creates short-term selling pressure, it also builds latent buying pressure. Darkfost said that if the XRP price starts to rise, these short positions could be liquidated, fueling the upward move. 

He revealed that a similar pattern has occurred for the token price since 2024. The first was between August and September 2024, and the second was during the April 2025 correction, when funding rates turned negative for a period before a bullish rebound occurred. The analyst stated that this price rebound was due to a shift in investor sentiment and funding rates returning to positive territory. 

A Rally Starter For XRP

In an X post, Santiment stated that XRP traders are showing major FUD, which they claimed is usually a rally starter for the XRP price. The on-chain analytics platform revealed that the altcoin has fallen into ‘Extreme Fear’ territory, with small retail traders becoming pessimistic about the token after a 19% decline from its recent high on January 5th. 

Santiment noted that historically, this level of bearish commentary has led to price rallies. This is based on the belief that prices move in the opposite direction to retail’s expectations more often than not. The altcoin has dropped again following the recent decline in the broader crypto market, led by Bitcoin. BTC fell below $87,000 yesterday on the back of U.S. political tensions, government shutdown risk, and ahead of this week’s FOMC meeting. 

At the time of writing, the XRP price is trading at around $1.88, down in the last 24 hours, according to data from CoinMarketCap.

Bitcoin Magazine

Strategy ($MSTR) Sells $257 Million in Stock to Buy 2,932 Bitcoin

Bitcoin proxy Strategy announced Monday that it acquired an additional 2,932 bitcoin for approximately $264 million between Jan. 20 and Jan. 25, according to a filing with the U.S. Securities and Exchange Commission. 

The purchases were executed at an average price of $90,061 per coin, lifting the company’s total bitcoin holdings to 712,647 BTC.

At current market prices, Strategy’s bitcoin treasury is valued at roughly $62.5 billion, reinforcing its position as the world’s largest publicly traded corporate holder of the asset. 

The company’s aggregate purchase price for its holdings stands at approximately $54.2 billion, including fees and expenses, translating to an average acquisition price of $76,037 per bitcoin.

The latest purchases were funded through proceeds generated under Strategy’s at-the-market (ATM) offering program. According to the filing, the firm sold 1,569,770 shares of its Class A common stock, MSTR, for approximately $257 million in net proceeds during the five-day period. 

It also sold 70,201 shares of its perpetual preferred stock, STRC, raising an additional $7 million, bringing total ATM proceeds to roughly $264 million.

As of Jan. 25, Strategy said it still has substantial capacity remaining across its ATM programs, including approximately $8.17 billion available for future issuance under its common stock offering. The company also maintains multiple preferred stock programs, including STRK, STRF, STRC and STRD, which collectively represent tens of billions of dollars in potential future capital raises.

With more than 712,000 BTC now on its balance sheet, Strategy controls roughly 3.4% of bitcoin’s fixed 21 million supply. 

At current prices, the company is sitting on an estimated $8.3 billion in unrealized gains.

Strategy’s MSCI inclusion 

Earlier this month, Strategy was relieved of some selling pressure when MSCI concluded its review of digital asset treasury companies and decided not to exclude them from its major global equity indexes.

The index provider said bitcoin-heavy firms will remain eligible under existing rules while it conducts further research on how to distinguish operating companies from investment-like entities.

The decision eased months of market anxiety after MSCI had proposed reclassifying companies with more than 50% of assets in digital assets as fund-like and therefore ineligible for inclusion.

Companies like Strategy, along with industry groups, pushed back strongly, warning that exclusions could trigger billions of dollars in forced passive selling.

At the time of writing, Bitcoin is trading near $89,000. 

This post Strategy ($MSTR) Sells $257 Million in Stock to Buy 2,932 Bitcoin first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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.

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.

January 2026 has delivered a blunt message to investors: the playbook has changed. Gold is trading above $5,000 an ounce for the first time. Bitcoin is stuck below $88,000 and cannot hold the $90,000 level it briefly reclaimed. This gap is not just a weird market moment. It looks like a reset in how capital behaves when geopolitics heats up, and policy direction gets messy.

The numbers underline the shift. Gold rose 64% in 2025 and is already up more than 17% in the first weeks of 2026. Bitcoin, meanwhile, sits roughly 11% below its December 2024 all-time high near $108,000. Over one weekend in late January, total crypto market cap dropped by about $56 billion to roughly $2.92 trillion. This is not random noise. It reflects two different investor instincts playing out in real time.

The Safe-Haven Rush: Why Gold Owns the Narrative Right Now

Gold’s run is not coming from one single driver. It is coming from several forces stacking on top of each other.

Central banks, especially in emerging markets, have been buying gold at a pace that looks more like crisis-era behavior than normal reserve management. ETF inflows have reinforced that demand. Retail and institutions are doing the same thing for the same reason: they want a hedge against currency risk, policy mistakes, and the kind of uncertainty that makes investors second-guess everything.

The geopolitical backdrop is not helping. Trade tensions have moved from headlines into concrete threats and real negotiation pressure. President Donald Trump’s administration has floated 100% tariffs on Canadian goods tied to China-related trade developments, plus potential 200% levies on French wines and champagne. That kind of language changes behavior fast because markets do not wait for policy to become law. They price the risk now.

Currency markets are reflecting the same mood. The Japanese yen strengthened to 153.89 per dollar, its strongest level since November 2025, as traders speculated about possible coordination between U.S. and Japanese authorities. Japan’s top currency diplomat kept timing vague, which tends to make uncertainty worse, not better. The euro pushed to a four-month high near $1.1898 as traders cut dollar exposure ahead of the Fed’s next signals and the possibility of new leadership chatter.

These moves matter because they signal something deeper than FX positioning. They suggest investors are questioning stability and coordination at the top of the global monetary system. When people get nervous about reserve currencies, they often reach for gold. Gold does not pay yield. It does not grow cash flow. It holds value because it still functions as a trust asset when confidence in other systems starts to wobble.

History helps frame the moment. In 2008, gold climbed from roughly $800 to about $1,900 by 2011 as central banks flooded the system with stimulus. In 2020, gold hit new highs above $2,000 during peak pandemic fear. This rally is bigger in both percentage terms and absolute levels, which suggests the market is pricing something more structural than a single shock.

Bitcoin’s Reality Check: Why “Digital Gold” Is Not Acting Like Gold

Bitcoin has spent years carrying the “digital gold” label. This month has exposed how fragile that comparison can be when stress hits.

Gold is absorbing defensive flows. Bitcoin is absorbing selling from people who bought higher and now want out. That difference matters because it changes how rallies behave. When gold rallies in a risk-off environment, it often pulls in more buyers. When Bitcoin rallies in the same environment, it often runs into sellers looking to exit.

Technically, Bitcoin has been trapped in a structure that has not offered easy upside. Price action has struggled around $87,619 after losing $90,000 during weekend trading. Support sits around $84,698 with resistance near $89,241. If support fails, downside pressure toward $84,000 becomes the obvious target. If resistance holds, $90,000 stays a psychological ceiling rather than a launchpad.

More important than the chart is the behavior underneath it. CryptoQuant data shows Bitcoin holders selling at a loss for the first time since October 2023. That is a shift in tone. In strong bull phases, holders usually ride volatility because they expect higher prices ahead. When people start locking in losses, they are not thinking in bull-market terms. They are managing pain and uncertainty.

Glassnode analysis adds another problem: a heavy supply overhang above $100,000. Many holders are sitting in positions bought between current levels and six figures. When price approaches their entry zones, they sell to break even or limit damage. That creates a supply wall that is hard to clear without fresh demand and strong momentum.

This is not how Bitcoin behaved in 2020 to 2021. Back then, conviction and institutional narratives pushed price from $10,000 to $69,000 in about a year. Today’s structure feels more like rotation and digestion than acceleration. Futures volumes are compressed. Leverage is subdued. Traders are not leaning into upside the way they do when they truly believe the move is imminent.

Prediction markets reflect the change in psychology. Polymarket odds have shown more confidence in gold holding above $5,500 through mid-year than Bitcoin setting new highs over the same window. That is the opposite of the mood in late 2024 when crypto optimism ran hot after Bitcoin crossed $100,000.

The deeper takeaway is uncomfortable for some investors: Bitcoin is not acting like a safe haven right now. It is acting like a high-volatility asset that depends on liquidity, confidence, and risk appetite. That does not kill the long-term thesis, but it changes how investors should frame it in the short term.

Altcoins Under Stress: What Happens When Speculation Hits a Wall

Bitcoin’s weakness looks mild compared to what is happening in altcoins.

Kaia (KAIA) is a clean example. It fell nearly 20% in 24 hours to around $0.0762 after breaking support near $0.0797 and briefly dipping below $0.0721. It held above its 50-day EMA, which offers some technical comfort, but the drop shows how fast liquidity disappears when sentiment cracks.

Altcoins are built for leverage to mood. In bull phases, capital moves from Bitcoin into Ethereum, then into larger alts, then into smaller speculative tokens as investors chase bigger multiples. In corrections, the flow reverses and the weakest assets get hit first. That creates a brutal reality: altcoins can look unstoppable on the way up and untradeable on the way down.

Ethereum has not offered much shelter either. Ether traded near $2,867 in late January, down 2.6% while Bitcoin fell 1.3%. That underperformance signals that investors are not rotating into higher-beta crypto exposure. Thin spot volume and muted derivatives activity support the same conclusion.

The question now is whether this is a pause before another risk cycle or a deeper structural shift. Several factors argue for caution. U.S. regulation is moving, but it still has open questions around token classification and how securities law will apply. Japan may approve crypto ETFs by 2028, with firms like Nomura and SBI expected to launch products on the Tokyo Stock Exchange, but a two-year timeline does not help the next few months.

There is also a credibility problem. Reports of a U.S.-linked crypto theft scandal involving alleged misuse of access to seizure wallets have rattled confidence. ZachXBT has traced funds linked to thefts spanning 2024 and 2025. Incidents like this do not just hurt sentiment for a week. They raise uncomfortable questions about custody, oversight, and the real-world weak points in the ecosystem.

What Institutions Are Actually Doing Right Now

Retail narratives dominate crypto chatter, but institutional behavior usually tells the cleaner story.

Central banks are voting with their balance sheets, and they are choosing gold. Many of them are not willing, or not able, to justify holding an asset that can drop 15% in a week. Their gold buying creates a steady baseline bid that crypto does not have.

Hedge funds and family offices have also turned cautious. Leverage in crypto derivatives remains compressed compared to peak cycles. Open interest in Bitcoin futures exists, but it has not expanded in the way you would expect if large players were building a new bullish stance.

Corporate treasury adoption has not restarted in a meaningful way. During 2020 to 2021, it was easier to sell boards on Bitcoin exposure because liquidity was abundant and narratives were clean. Today, when gold is up 17% year-to-date and Bitcoin is chopping sideways, that boardroom pitch becomes harder.

Pension funds and sovereign wealth funds remain mostly on the sidelines. They move slowly and demand strong regulatory certainty. The U.S. may get there, but it is not there yet.

Right now, institutional money looks like it is waiting, not charging in. That is the simplest read, and it matters because those investors have the best access to research, infrastructure, and policy visibility.

The Fed Variable: Why This Week Can Move Everything

The late-January Federal Reserve meeting matters more than people want to admit. Not because the market expects a surprise rate hike or cut, but because guidance sets tone and liquidity expectations.

If the Fed signals confidence that inflation is easing and hints at future cuts, risk assets usually respond well. Lower rates reduce the opportunity cost of holding gold, and they tend to weaken the dollar, which supports commodity pricing. Crypto would benefit too, mostly through improved liquidity and renewed risk appetite.

If the Fed stays hawkish and emphasizes inflation risk, the market hears “higher for longer.” That hurts speculation. It also pressures gold through higher real yields, though safe-haven demand can sometimes overpower yield dynamics when fear becomes the bigger driver.

Politics adds another layer. Trump has criticized Jerome Powell publicly, and any credible talk of leadership changes introduces a market question about central bank independence. If markets interpret leadership shifts as more accommodative and more political, both gold and Bitcoin could rally on the same narrative: long-term trust risk in fiat management.

FX moves leading into the meeting show the tension. Traders have been trimming dollar exposure. That positioning can unwind quickly after Fed messaging, which would ripple into correlated assets.

Geography Is Not Background Noise in 2026

Regional differences are starting to matter more.

Asia has been mixed. China’s Shanghai index rose slightly while Japanese equities fell on yen strength. That split reflects different policy priorities and economic conditions across the region.

Japan’s currency strength is a headwind for exporters, but the medium-term ETF discussion positions Japan as a potential regulated gateway for crypto exposure, even if the timeline stretches to 2028. Europe has its own stress points, including trade friction with the U.S. The euro’s strength helps imports but hurts export competitiveness. The ECB has moved more dovishly than the Fed, which further changes cross-border capital flows.

The U.S. still dominates crypto market structure, liquidity, and innovation, even with regulatory uncertainty. Any real legislative breakthrough will matter globally because U.S. clarity tends to set the tone for institutions everywhere.

Emerging markets sit at the center of the gold move. They feel currency risk hardest and often have the strongest incentive to seek alternatives. But in practice, gold is still simpler and more accessible than crypto for most investors in those regions, which helps explain why gold is absorbing flows first.

Portfolio Positioning: What Discipline Looks Like in Uncertain Markets

This environment punishes overconfidence.

Gold’s role is straightforward. It is doing what it has historically done in messy periods. A 5% to 10% allocation to physical gold or gold-backed ETFs can make sense for many investors with multi-year horizons. It should protect the portfolio without taking over the entire strategy.

Crypto needs a different label. It is closer to a venture-style exposure to technology adoption than a pure safe haven. That means sizing should be conservative. A 1% to 3% allocation can keep investors engaged in long-term upside without turning short-term volatility into a lifestyle risk.

This is also a moment where patience often beats activity. Large shifts based on short-term moves tend to destroy value. Rebalancing rules matter more than predictions. If gold has grown far beyond its target weight, trimming back to plan can be smarter than chasing the next headline.

Dollar-cost averaging can work for crypto investors who believe in long-term adoption but do not trust the next six weeks. Small, scheduled buys remove emotion and reduce timing risk.

Leverage is the trap. Borrowing to amplify crypto exposure remains one of the fastest ways to blow up in a market like this. Volatility compression often precedes violent expansion. Liquidations do not care about your thesis.

Scenarios for the Next Six Months

Several paths remain plausible through mid-2026.

One scenario is the most boring and arguably the most consistent with current structure: gold keeps rising on safe-haven demand while crypto chops sideways. Gold could press toward $5,500 as tensions and central bank buying persist. Bitcoin could range between $80,000 and $95,000, supported by long-term holders but capped by overhead supply and cautious institutions.

A second scenario requires alignment: easing geopolitical tension plus Fed rate cuts. That would likely rotate capital out of gold and back into risk, lifting crypto meaningfully. Bitcoin could reclaim $100,000 if market structure improves and leverage returns, while gold could pull back but remain elevated above $4,500.

A third scenario is the darker one: economic conditions deteriorate materially. Gold could push toward $6,000 while crypto faces forced liquidations and deeper downside, with Bitcoin potentially testing $70,000 or lower.

A fourth scenario depends on policy competence: a clear U.S. regulatory breakthrough that unlocks institutional capital at scale. It is possible, but the near-term probability remains lower than crypto bulls want.

The most realistic outcome may look like a mix: partial easing in some geopolitical zones, new flashpoints elsewhere, gradual Fed shifts, and crypto alternating between relief rallies and pullbacks without clean direction.

Risk Management Rules That Still Matter

When correlations move and narratives break, basics protect capital.

Position sizing is the first filter. Overallocating to a single theme is the most common failure. Crypto should be sized so that total loss would not change your life. Gold should be sized so it protects the portfolio without trapping you in defensive posture if equities rebound.

Diversification only works when it is real. Ten cryptocurrencies do not diversify if they all move with Bitcoin. Two forms of gold exposure can also behave differently: physical gold, gold ETFs, and miners each carry distinct risks.

Liquidity matters more than people admit. Assets that trade cleanly in calm markets can become thin in stress. Holding enough cash or liquid reserves to avoid forced selling remains a timeless rule.

Discipline is the edge. Volatility is designed to trigger bad decisions. Rules around rebalancing and allocation prevent emotional reactions. Writing down your principles during calm periods and following them during stress is not just advice. It is a practical survival tool.

Taxes also become more important as volatility increases. Crypto gains and losses can be managed strategically through loss harvesting, holding periods, and timing. Gold can have special tax treatment in some jurisdictions. Investors should not wing it.

What Past Divergences Tell Us

This is not the first time asset relationships have shifted.

In 2013’s taper tantrum, gold fell while risk assets also struggled. Safe-haven flow went into dollars, not gold. That episode shows safe haven behavior changes depending on what investors fear.

In 2018, Bitcoin collapsed while gold stayed rangebound, because macro fear was muted. That period shows gold does not automatically benefit from crypto weakness.

In 2020, both rallied after the initial crash because stimulus and inflation fears dominated. That environment is not today’s environment. Today looks more like geopolitical stress plus constrained liquidity, which tends to favor gold over speculative assets.

The lesson is simple: correlations are not laws. They are temporary relationships shaped by the dominant fear in the room.

The Ethereum Problem: Why Number Two Looks Stuck

Ethereum’s underperformance is not just a chart issue. It points to a broader question about smart contract platforms and real adoption.

DeFi activity is down from peak levels. NFT volumes have collapsed. Layer-2 scaling has reduced fees, which is good for users, but it has also fragmented liquidity and attention across multiple networks. That can weaken Ethereum’s network effects, even if the technology continues to improve.

Solana and other platforms have gained share, but they have also struggled during broad risk-off conditions. So this is not just an Ethereum-specific problem. It is a demand problem across crypto applications.

The bigger concern for Ethereum bulls is the application gap. Ethereum has proven it can work. What it has not proven is that it can deliver mainstream use cases that compete with web2 experiences at scale. Many on-chain apps still feel like tools for crypto-native users rather than products built for the public.

Without clear demand drivers, ETH valuation stays tied to speculative appetite. In a market where investors are reducing risk, that is not a great setup.

Regulation: The One Catalyst That Can Reprice Everything

Even with weak price action, regulation remains the biggest potential reset.

U.S. legislative progress is focusing on custody rules, stablecoin frameworks, and exchange registration. Real clarity on token classification would be the unlock. It would reduce existential risk for projects, give institutions rules they can follow, and lower the odds of surprise enforcement events that shake markets.

International coordination is improving too. FATF standards have pushed most major jurisdictions toward common baselines for exchanges and wallet providers. The EU’s MiCA rules bring structure across a large economic bloc. Some elements are heavy, but clear rules often matter more than perfect rules.

Japan’s ETF discussion suggests growing acceptance of crypto as an investment asset class, even if the pace is slow. China remains restrictive on trading, but it continues to pursue blockchain applications and central bank digital currency research.

Regulation will not fix market structure overnight, but it can change who is allowed to participate. That is how market regimes shift.

The CBDC Wildcard

Central bank digital currencies sit in a strange place. They validate the concept of digital money while competing with private crypto rails.

CBDCs are permissioned and controlled. They do not offer the decentralization or supply constraints that define Bitcoin. They can also enable deeper state-level visibility into transactions, which raises privacy concerns.

Still, their development signals something important: central banks agree that the future of money is digital. The question is whether CBDCs simply replicate existing payment rails, or whether they introduce programmable money that could replace some stablecoin and DeFi use cases.

If CBDCs expand surveillance and control, some users may move toward crypto as an opt-out alternative. If CBDCs remain limited and functional, they may coexist without materially disrupting crypto adoption.

The timeline remains unclear. Technical scaling, interoperability, and political pushback will shape how fast democracies move. Authoritarian systems may move quicker, but that experience may not translate cleanly to the U.S. or Europe.

Conclusion: Dealing With Markets That Do Not Follow Narratives

Early 2026 is forcing investors to separate slogans from reality.

Gold is behaving like gold. It is absorbing defensive flows during uncertainty. Bitcoin is behaving like a high-volatility asset that depends on liquidity and confidence. That does not destroy the long-term crypto thesis, but it does change how investors should frame it right now.

Investors should position for the market they have, not the market they want. Gold deserves a role as insurance. Crypto deserves a smaller, deliberate role as a high-upside, high-risk exposure to long-term adoption. Diversification, disciplined sizing, and patience remain the cleanest strategy in a regime where trends are not cooperating.

The next months will reveal whether crypto consolidates before a new growth phase or whether this marks a deeper shift in how capital treats digital assets during stress. Investors who stay disciplined and realistic will be fine either way. Investors who overextend on conviction or trade emotionally will likely learn the same lesson markets teach every cycle.

Markets humble confidence. This divergence is a reminder that assets do not owe anyone the behavior that narratives promised. The investors who accept that and manage risk accordingly will be in the best position for whatever 2026 delivers.

Frequently Asked Questions

1. Why is gold outperforming Bitcoin in early 2026?

Gold is benefiting from geopolitical tension, central bank buying, and currency uncertainty. Bitcoin is behaving like a risk asset, not a safe haven, and is facing selling pressure from recent buyers.

2. Is Bitcoin still considered “digital gold”?

In theory, yes. In practice, not right now. Bitcoin is trading more like a speculative asset that depends on liquidity and risk appetite rather than a defensive store of value.

3. Why did gold cross $5,000 per ounce?

Central banks accelerated gold purchases, investors sought safety amid trade and policy uncertainty, and currency volatility increased demand for non-fiat stores of value.

4. Why are altcoins falling more than Bitcoin?

Altcoins carry higher risk and lower liquidity. When markets turn risk-off, capital exits speculative tokens first, leading to sharper and faster declines.

5. Is Ethereum underperforming Bitcoin in 2026?

Yes. Ethereum has lagged Bitcoin due to weaker demand for DeFi and NFTs, fragmented liquidity from layer-2 solutions, and lack of strong new mainstream applications.

6. What role is the Federal Reserve playing in these markets?

Fed guidance affects liquidity, dollar strength, and risk appetite. Uncertainty around rates and potential leadership changes has increased volatility across gold, crypto, and currencies.

7. Are institutions buying crypto right now?

Most large institutions are cautious. Central banks are buying gold, while hedge funds, pensions, and corporates are largely waiting for clearer regulation and better risk-reward setups.

8. Is now a good time to invest in Bitcoin?

That depends on time horizon and risk tolerance. Short-term conditions favor caution, while long-term investors may prefer small, disciplined allocations using dollar-cost averaging.

9. How much gold or crypto should a portfolio hold in 2026?

Many investors consider 5–10% in gold for protection and 1–3% in crypto for upside exposure, sized according to personal risk tolerance and financial goals.

10. What could change the outlook for crypto in 2026?

Clear U.S. regulation, Fed rate cuts, easing geopolitical tensions, or renewed institutional adoption could improve sentiment. Until then, crypto is likely to remain volatile and range-bound.

Gold Shines But Bitcoin Faces the Music: What 2026 Has in Store for Investors? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

Investors are showing a steady faith in Bitcoin even as money moves elsewhere. According to Coinbase’s Charting Crypto Q1 2026 report, many big players think the current price is a bargain. The mood is cautious, but the view among large institutions leans toward holding for the long run.

Institutional Confidence And Behavior

Reports say about 71% of institutional investors view Bitcoin as undervalued when it sits between $85,000 and $95,000. Independent investors are not far behind, with 60% sharing that view.

A quarter of institutions felt the price was fair, and only a small share thought it was too high. These numbers show a strong tilt toward belief in future gains.

Gold And Silver Are Doing Very Well

Gold has climbed sharply, and silver has more than doubled since last October. That flow into metals has come as investors seek shelter while worries over global tensions rise.

Stocks have not surged as much; the S&P 500 has posted modest gains. The contrast is clear: some money went into traditional hedges instead of crypto.

Reports note renewed tariff threats from US President Donald Trump and rising strain between the US and parts of the Middle East.

Such moves have been linked to market nervousness. If energy supply or trade routes are hit, risk assets often wobble. That makes Bitcoin more sensitive than usual to headlines.

Bitcoin has been trading in the high $80,000s. It briefly tried to hold above $90K but slipped back, touching nearer $86,000 at times.

Volatility has returned, and liquidations were seen after the big October move. Still, many technical analysts keep longer-term targets on their charts, arguing that the broader trend is not necessarily broken.

Reports say 80% of those large investors would either keep their stakes or add more if prices fell another 10%. More than 60% have already held or raised their positions since October’s peak.

Over half think the market is in an accumulation phase or still in a bear cycle, which explains why many prefer to buy on weakness rather than sell.

Coinbase expects the Federal Reserve to cut rates twice in 2026, an outlook that could help risk assets if it comes to pass. Consumer inflation has been steady and GDP growth looked strong in the last quarter. These conditions could nudge sentiment back toward risk-taking, though timing is far from sure.

The story is not simply bullish or bearish. On one hand, large investors show clear conviction and are willing to act on dips.

On the other, safe-haven flows and geopolitical shocks keep a lid on rapid re-rating. The near-term path is likely choppy, while the longer view depends on whether macro calm returns and whether demand for crypto picks up again.

Featured image from Unsplash, chart from TradingView

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.