Cointelegraph

Bitcoin (BTC) heads into the January close in dangerous territory as macro volatility factors ramp up.

Bitcoin closes the week below key support in a move that opens the door to new lows.

FOMC week dawns, but markets are focused on Japan, tariffs and geopolitical instability.

Precious metals smash historic records while crypto fails to match them.

Bitcoin short-term holders show signs of record capitulation at current price levels.

“Tactical” Bitcoin selling pressure is ongoing, with liquidity able to absorb the distribution.

BTC price analysis sees new lows

Bitcoin dropped to $86,000 around Sunday’s weekly close — a target already on the radar for traders.

Data from TradingView shows buyers defending that level into the week’s first Asia trading session, with $90,000 still out of reach.

“There’s so much volatility ahead of us coming week. Not only on the Bitcoin & Crypto markets, but also in forex, commodities & bond markets,” crypto trader, analyst and entrepreneur Michaël van de Poppe summarized in a post on X. 

“Crypto is preparing for the worst, hence the deep selloff and that’s why I think coming week brings a generational opportunity across the board.”

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

After closing the week below $86,500, BTC/USD is in a thoroughly bearish position, per Material Indicators cofounder Keith Alan.

In his latest analysis, Alan warned of consequences in the event of a weekly close under the 2026 yearly open level near $87,500 and the 100-week simple moving average (SMA) at $87,250.

Pay close attention to the weekly close for $BTC! The only thing more bearish than a weekly close below the Yearly Open Timescape Level at $87.5k, would be a weekly close below the 100-Week SMA. pic.twitter.com/WjMitP2Ez6

— Keith Alan (@KAProductions) January 25, 2026

“Wicks don't count, it's the close that matters,” he added in a separate post showing exchange order-book liquidity data and whale orders. 

Data from monitoring resource CoinGlass confirmed 24-hour cross-crypto liquidations of nearly $750 million at the time of writing.

Crypto liquidation history (screenshot). Source: CoinGlass

“Based on Bitcoin losing the mid-range; HTF liquidations to the downside; and the possible US Gov. shutdown, we still think that the most likely scenario is that Bitcoin drops back to low $80s in the coming weeks,” trader CrypNuevo forecast at the weekend.

BTC/USDT one-day chart. Source: CrypNuevo/X

In a bold prediction, meanwhile, trader, analyst and commentator BitQuant went on record to announce an inflection point for BTC price action.

“The coming week is significant in that it marks the end of the bottoming phase,” he told X followers.

BitQuant retains the view that a long-term high for Bitcoin has not yet been reached, with this due at $145,000.

Fed to conduct first FOMC meeting of “wild year”

The Federal Reserve’s decision on interest rates forms the week’s key macroeconomic event, but traders have multiple volatility sources to contend with.

These include worries over the Japanese economy and the Fed’s move to buy yen, along with international trade questions still hanging in the air.

On Wednesday, the Federal Open Market Committee (FOMC) will announce any changes to its benchmark rate, with Chair Jerome Powell delivering guidance in an accompanying speech and press conference.

Markets will be watching Powell’s language in particular for signs of policy change. Expectations for the meeting itself have long been that rates will stay the same.

Fed target rate probabilities for Jan. 28 FOMC meeting (screenshot). Source: CME Group FedWatch Tool

At the same time, tensions between him and US President Donald Trump remain, along with a legal investigation into Fed building renovations that Powell dismissed as a pretext for changing his policy trajectory before his imminent replacement.

“The Chief Investment Officer of BlackRock is now expected to be the next Fed Chair. And, Trump says cutting rates is a ‘requirement’ for the next Fed Chair and is actively calling for 1% interest rates. 2026 is going to be a wild year,” trading resource The Kobeissi Letter commented on X.

Macro data itself has given mixed signals over US inflation. Regardless, stocks continue to enjoy a strong start to 2026, while crypto languishes.

“Loose monetary policy and an expanding global money supply are key drivers behind bullish financial conditions. But if those conditions also deliver stronger than expected economic growth, inflation could become more problematic in the year ahead,” trading outfit Mosaic Asset Company wrote in the latest edition of its regular newsletter, “The Market Mosaic.”

“Core measures of consumer inflation have remained near the 3% level on a year-over-year basis, with the disinflation trend since mid-2022 stalling out well above the Fed’s 2% inflation target.”

Global liquidity conditions. Source: Mosaic Asset Company

Mosaic warned that a rebound in inflation this year would trigger moves seen during the 1970s.

This week, meanwhile, will also see the December print of the Producer Price Index (PPI). November’s release came in above expectations.

“World is waiting on crypto” as gold, silver boom

In a predictable milestone, gold and silver crossed historic thresholds to start the week, passing the $5,000 and $100 marks, respectively.

XAU/USD reached $5,111 per ounce, with XAG/USD hitting $110 for the first time during Monday’s Asia trading session.

XAU/USD one-hour chart. Source: Cointelegraph/TradingView

The relentless rise in precious metals continues as Bitcoin and altcoins fail to catch a bid, having been stuck in a narrow range for several months. 

That inverse relationship is now beginning to make waves beyond the crypto trading community.

“Where is Bitcoin?” The Kobeissi Letter queried in a dedicated X post on the phenomenon. 

“Silver prices are now outperforming Bitcoin by one of their widest margins on record. In ~13 months, Silver is up +270% as Bitcoin has fallen -11%. This makes Silver's market cap 3.5 TIMES larger than Bitcoin. The world is waiting on crypto.”

BTC/USD vs. CFDs on silver % change. Source: The Kobeissi Letter/X

Kobeissi suggested that the threat of another US government shutdown, which it described as “likely,” was “adding fuel to the fire” across precious metals.

Van de Poppe captured the pro-crypto mood around BTC versus gold.

“Bitcoin vs. Gold is the cheapest it has ever been. At least, the gap between the two has never been this big in terms of fair value. The 2-Week RSI is the lowest ever. Lower than in 2022, lower than in 2018,” he wrote Sunday. 

“It doesn't make sense to be valuing an asset like Bitcoin against the dollar, it makes sense to value Bitcoin against other assets, in this case Gold. In that aspect, Gold is expensive, Bitcoin is super cheap.”

BTC/USD vs. gold two-week chart with RSI, volume data. Source: Michaël van de Poppe/X

At the same time, Van de Poppe revealed an unprecedented potential bullish divergence on BTC/XAG.

“What does this say? This does say that the coming week is going to be extremely volatile and could indicate a bottom on this metric and therefore, Silver is likely to peak and money is likely rotating towards other assets,” he commented.

BTC/XAG three-day chart with RSI, volume data. Source: Michaël van de Poppe/X

Short-term holders panic at a loss

BTC price action may be rangebound, but onchain activity shows that newer investors are as sensitive as ever to sudden moves.

Uploading data to X from onchain analytics resource Checkonchain, the analytics account named after famous economist Frank Fetter wrote that loss-making trades were making history.

“Short-term holders are realizing losses at historic levels on the bitcoin CRASH to $86k,” it stated.

The data showed the realized profit/loss ratio for Bitcoin’s short-term holder (STH) cohort — the group of wallets holding a given amount of BTC for six months or less.

The proportion of transactions from STH wallets in which BTC is moving at a lower price than that at which it last moved is now higher than ever. The ratio is lower than during the 2022 bear market bottom, when BTC/USD hit $15,600 after a near 80% drop from its old 2021 all-time highs.

Bitcoin STH realized profit/loss ratio. Source: Frank A. Fetter/X

Continuing, onchain analytics platform CryptoQuant confirms that the overall BTC supply has crossed a bearish profit threshold of its own.

Supply in profit currently stands at 62% — the lowest level since September 2024, when Bitcoin traded at around $30,000.

“When Bitcoin Supply in Profit drops below 70% and fails to recover above 80%, it is historically a sign of a potential further decline and often a confirmation of a bear market,” contributor El Crypto Tavo wrote in an accompanying “Quicktake” blog post.

BTC supply in profit. Source: CryptoQuant

Bitcoin selling “genuine but controlled”

Discussing the weekend’s drop to $86,000, CryptoQuant appeared unalarmed.

Analyzing volume delta on exchange order books, contributor Arab Chain argued that the market was not experiencing a rush for the exit.

Volume delta reached a relatively modest $59.6 million on Binance during the dip, indicating only slight dominance of sellers over buyers.

“Numerically, this represents significant selling pressure; however, its true significance becomes apparent when compared to price action,” Arab Chain explained. 

“Despite this large negative figure, no sharp price collapse was observed, indicating strong liquidity absorption within the order book.”

Bitcoin buy-side pressure vs. BTC/USD (screenshot). Source: CryptoQuant

Volume delta z-score readings, it added, represented “short-term tactical selling pressure rather than a phase of panic or widespread forced liquidation.”

Last week, Cointelegraph reported on split intentions among the professional Bitcoin investor base amid unclear price trends heavily influenced by external factors.

“These values reflect genuine but controlled selling pressure, characterized by elevated selling liquidity, limited imbalance, and moderate statistical deviation,” Arab Chain concluded. 

“This combination often defines rebalancing phases, during which momentum temporarily weakens without a breakdown in market structure.”

Tokyo‑listed Bitcoin treasury company Metaplanet raised its 2025 revenue and operating income forecasts and flagged a large non‑cash Bitcoin write‑down, while sharply increasing guidance for 2026.

The company now expects 2025 revenue of 8.905 billion Japanese yen (approximately $58 million) and operating income of about $40 million, according to a Monday notice.

Despite an improved operating outlook, Metaplanet forecasts an ordinary loss of roughly $632 million and a net loss of about $491 million. Both figures are driven by a Bitcoin impairment loss of around $680–700 million, which is a non‑cash write‑down of the value of its Bitcoin (BTC) holdings at year‑end prices.

That leaves Metaplanet on track to post a deep annual loss for 2025 despite stronger underlying operating performance when it files its full‑year results on Feb. 16, 2026.

Notice Regarding Revision of Full-Year Earnings Forecast. Source: Metaplanet

Metaplanet management said that Q4 2025 revenue from its Bitcoin Income Generation business “is expected to significantly exceed initial projections,” lifting full‑year revenue in that segment to around $55 million, up from roughly $40 million previously announced.

Bitcoin impairment and BTC yield

The filing explains that the impairment stems from quarter‑end mark‑to‑market accounting and is a “non‑cash accounting adjustment reflecting period-end price fluctuations and has no direct impact on the Company's cash flows or operations.” 

At the same time, Metaplanet’s Bitcoin Treasury business continued to grow. BTC holdings rose from 1,762 BTC at the end of 2024 to 35,102 BTC at the end of 2025, with BTC yield per diluted share reaching 568% for the year. In other words, the amount of Bitcoin backing each diluted share increased by 568% over 2025, a metric the company uses to track BTC growth on a per share basis.

Because of the difficulty of forecasting Bitcoin prices, the company does not provide guidance for ordinary income or net income for 2026.

2026 guidance and spending

For 2026, Metaplanet forecasts revenue of around $103 million and operating income of about $73 million, with almost all that revenue expected from the Bitcoin Income Generation business alone, and selling, general and administrative expenses of roughly $29 million.

Metaplanet publishes daily data on its BTC holdings, unrealized gains and losses and related metrics.

Big questions: Would Bitcoin survive a 10-year power outage?

Decentralized exchange (DEX) aggregator Matcha Meta suffered a security breach on Sunday through one of its primary liquidity providers, SwapNet, in the latest cyberattack tied to exploiting smart contract vulnerabilities.

Matcha Meta disclosed the breach in a post on X on Sunday, warning that users who had disabled one-time token approvals may be at risk. The protocol urged users to immediately revoke all approvals granted to SwapNet’s router contract to prevent further losses.

Estimates of the stolen funds vary. Blockchain security company CertiK said roughly $13.3 million was taken, while PeckShield estimated at least $16.8 million in funds stolen on the Base network.

“So far, ~$16.8M worth of crypto has been drained. On Base, the attacker swapped ~10.5M USDC for ~3,655 ETH and has begun bridging funds to Ethereum,” wrote PeckShield in a Monday X post, urging users to revoke all approvals related to the protocol.

CertiK said the exploit stemmed from an “arbitrary call in @0xswapnet contract that let attacker to transfer funds approved to it.”

Matcha Meta said the exposure was linked to SwapNet rather than its own infrastructure. Cointelegraph has contacted Matcha Meta for comment on the cause of the vulnerability and any plans to compensate affected users or strengthen safeguards, but had not received a response by publication.

Source: Matcha Meta

The incident comes two weeks after another smart contract exploit resulted in $26 million in losses from the offline computation protocol Truebit and a 99% crash for the Truebit (TRU) token, Cointelegraph reported on Jan. 8.

Related: Bitcoin investor loses retirement fund in AI-fueled romance scam

Smart contracts the largest target for crypto hackers

Smart contract flaws have emerged as the leading cause of crypto losses. Smart contract vulnerabilities accounted for 30.5% of all the crypto exploits in 2025, with 56 cybersecurity incidents, according to SlowMist’s year-end report.

Account compromises and hacked X accounts accounted for 24% in second place.

Distribution of causes for security incidents in 2025. Source: SlowMist

Related: Fake MetaMask 2FA security checks lure users into sharing recovery phrases

Security researchers say advances in artificial intelligence are also reshaping how vulnerabilities are identified.

In December, commercially available generative AI agents uncovered $4.6 million worth of smart contract exploits in existing protocols, through Anthropic’s Claude Opus 4.5, Claude Sonnet 4.5 and OpenAI’s GPT-5.

Magazine: Meet the onchain crypto detectives fighting crime better than the cops

Coinone, one of a handful of regulated South Korean cryptocurrency exchanges, is reportedly up for sale, with both local financial institutions and foreign exchanges among the rumored bidders.

The company has begun a process to sell the stake held by Chairman Cha Myung-hoon, who controls 53.4% of the company, the local news agency Seoul Economic Daily reported on Sunday.

“We are discussing partnerships, including equity investments, with overseas exchanges and domestic financial institutions,” Coinone confirmed to the outlet, adding that no final decision has been made.

The reported sale comes amid a wave of consolidation in South Korea’s crypto industry, with major mergers and acquisitions involving Binance, Naver, Dunamu and Mirae Asset.

South Korea is one of the largest crypto markets globally

Apart from Cha’s 53% stake, Coinone’s potential sale reportedly involves an additional share sale by local game dev company Com2uS, which acquired a 38.4% stake in the exchange between 2021 and 2022.

Com2uS’s book value in Coinone fell to 75.2 billion won ($52 million) by the end of the third quarter of 2025, far below the 94.4 billion won ($65 million) it paid for the stake, the report notes.

Coinone ranks third in South Korea by crypto trading volume, with $168.7 million, behind Upbit and Bithumb. Source: CoinGecko

South Korea is the second-largest crypto market in the Asia-Pacific by total value received, according to Chainalysis, making it one of the world’s key digital asset hubs.

In March 2025, the country had 16.29 million crypto investors, or nearly 32% of the population, surpassing the 14.23 million stock investors reported at the time.

Speculation grows over possible Coinbase investment

Coinbase, the largest US crypto exchange by trading volume, has been widely speculated to be interested in acquiring a stake in Coinone, given the strategic importance of the South Korean market.

The Seoul Economic Daily reported that Coinbase plans to visit South Korea this week to discuss potential equity investment and cooperation with Coinone and local firms.

Source: Wu Blockchain

While Coinbase says it operates in more than 100 countries, it has not formally launched or operated a dedicated exchange under South Korean regulation.

Coinbase declined to comment to Cointelegraph on the reported visit or on whether it is considering entering the South Korean market, saying it does not comment on rumors or speculation. Coinone did not immediately respond to a request for comment.

The news comes amid a wave of deals in South Korea’s crypto exchange sector, including September 2025 reports that Naver would acquire Upbit, the country’s largest crypto exchange.

Mirae Asset Group, a major South Korean financial services firm, said it planned to buy Korbit, one of the country’s largest exchanges, in late 2025 in a deal worth up to $100 million.

Binance, the world’s largest crypto exchange by trading volume, reportedly completed a majority stake acquisition in local exchange Gopax in October 2025 as part of its return to the market.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Japan is weighing whether to allow its first cryptocurrency exchange-traded funds (ETFs), potentially as early as 2028, in a move that would mark a significant shift in how the country regulates digital assets for mainstream investors.

According to a report by Nikkei, citing people familiar with the matter, Japan’s Financial Services Agency plans to amend its regulatory framework to allow crypto to be included as eligible ETF assets alongside stronger investor-protection mechanisms. 

Major financial groups, including Nomura Holdings and SBI Holdings, are among the first companies expected to develop crypto-linked ETF products, Nikkei reported.

If implemented, the changes would lower barriers for Japanese retail investors aiming for regulated exposure to Bitcoin (BTC) and other digital assets through traditional brokerage accounts. The move would also bring Japan closer to markets like the United States and Hong Kong, which approved spot crypto ETFs in 2024. 

Japan sends another policy signal, not an approval

The discussions reflect regulatory intent rather than a finalized policy shift. The FSA has not publicly confirmed a timeline, and any change would likely require formal consultations and revisions before crypto ETFs could be approved under Japan’s existing rules.

At the time of writing, crypto ETFs remain unavailable in Japan due to current policies that restrict ETF-eligible assets. While the regulator refined its approach to crypto, ETFs tied directly to digital assets have so far remained outside the framework. 

Nikkei estimated that Japanese crypto ETFs could eventually reach 1 trillion yen, worth about $6.4 billion, in assets. However, the estimates are speculative and depend on market conditions, investor demand and finalized regulations. 

Related: Japan’s finance minister backs exchanges as gateway for digital assets

Industry positioning already underway

SBI Holdings has previously outlined plans to launch a crypto ETF in Japan. On Aug. 6, 2025, the company revealed plans to launch a Bitcoin-XRP dual ETF and a gold-crypto ETF structure. 

At the time, SBI said discussions with authorities were ongoing and that these plans depended on regulatory approval. 

On Jan. 5, Japan sent a clear welcome signal to digital assets through remarks by its Finance Minister Satsuki Katayama. In a speech, Katayama said that Japan must also push advanced fintech initiatives, citing ETFs being used as inflation hedges in the US.  

“In the US, crypto assets are increasingly used via ETFs as inflation hedges, and Japan must also pursue advanced fintech initiatives,” she said in an English translation of the speech. 

Magazine: A ‘tsunami’ of wealth is headed for crypto: Nansen’s Alex Svanevik

Binance co-founder Changpeng Zhao has ruled out returning to the crypto exchange, despite a pardon from US President Donald Trump opening the door for it to be possible.  

Zhao told CNBC’s Squawk Box on Sunday that it’s his understanding that the pardon means the former restrictions “are completely lifted,” but shot down any suggestions of going back to Binance.

“I haven't really needed to go back. I didn't really want to. I thought it was a pretty good way for me to step down, away from Binance after seven years,” he said.  

“At the time, it was very painful. I didn't like it. But after, you get used to it. I don't think it's good for me to go back. I think we should leave room for other strong leaders to grow,” Zhao added. 

A candid conversation from Davos - on prison, pardon, and what freedom means going forward.

Full interview on @CNBC with @andrewrsorkin. Focused on building what’s next. pic.twitter.com/x94llJFac2

— CZ 🔶 BNB (@cz_binance) January 25, 2026

Zhao pleaded guilty in November 2023 to failing to maintain an effective Anti–Money Laundering program at Binance and was later sentenced to four months in prison along with being prohibited from working at the exchange.

Trump pardoned Zhao in October, which drew scrutiny from some US lawmakers over Binance’s ties to Trump-linked crypto ventures, but Trump denied knowing who Zhao was.

Binance doesn’t need a “backseat driver”

Zhao said that Binance hasn’t missed a beat since he stepped down, with “two capable CEOs” at the helm, and increases to several growth metrics, including users and market share.

In a December open letter last year, the exchanges' leadership, Richard Teng and Zhao’s long-term partner, Yi He, announced the Binance user base had climbed to over 300 million, and the total product trading volume for the year was $34 trillion.

“I just thought, look; they don't need a backseat driver today. I'm still a shareholder,” Zhao said, adding that he is “just a pretty passive shareholder, and today when I want to give them advice, I just write it on Twitter.”

Bitcoin super cycle on the cards for 2026

Coming into the new year, crypto prices and sentiment have been in decline. However, Zhao predicts Bitcoin (BTC) could experience a super cycle in the next 12 months, and along with others in the space, has speculated its four-year cycle might be dead.

Related: US Bitcoin ETFs bleed $1.72B in five-day outflow streak

In economics, a supercycle is an extended period of outsized growth, indicating a major shift underpinned by strong fundamentals over many years, according to CoinMarketCap.

“Normally, Bitcoin follows four-year cycles, if you look at historic data every four years there's an all-time high, and then there's a drop,” Zhao explained. “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.”

Magazine: A ‘tsunami’ of wealth is headed for crypto: Nansen’s Alex Svanevik

The UK’s financial watchdog is entering the final stages of its consultation process for a host of key proposed crypto regulations as the agency continues to work on the government’s crypto roadmap. 

The Financial Conduct Authority said on Friday that it is now seeking feedback on 10 crypto regulatory proposals, marking the “final step” of its consultations on potential rules for the sector.

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

“At the same time, risks remain, and we want a market where innovation can thrive, but where people understand the risks. But regulation can’t — and shouldn’t try — to get rid of all risk. We want those interested in investing in crypto to understand that risk.” 

The FCA’s crypto proposals cover a range of aspects of the market, including business standards of conduct, credit-based crypto purchases, regulatory reporting, asset safeguarding, and retail collateral treatment for borrowing crypto, among other things. The deadline for feedback has been set for March 12.

This package of proposals was initially outlined in December, with the FCA expressing an intent to regulate the crypto market similarly to traditional finance. 

Package of rules up for consultation. Source: FCA

Related: UK mulls under‑16 social media ban amid rising online ID push

The FCA stated it has made “significant progress” in ironing out the regulatory details as part of the government’s roadmap. Earlier this month, the FCA announced a timeline for crypto asset service providers to register as part of its new licensing regime.

“We expect the application period will open in September 2026,” the FCA noted, adding that the timeline will be confirmed in due course.

The licensing regime puts tighter oversight and constraints on crypto firms, and requires them to have FCA authorization to operate in the UK. 

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

The Ethereum treasury company ETHZilla has purchased two jet engines after selling off some of its crypto stash and increasing its focus on asset tokenization.

ETHZilla said in a regulatory filing on Friday that it purchased two aircraft engines through a newly formed subsidiary, ETHZilla Aerospace LLC, for $12.2 million in cash.

The engines, which are used in large commercial planes, came with existing lease agreements with a major airline, enabling the firm to begin earning yields from them.

The purchase comes after ETHZilla chairman and CEO McAndrew Rudisill said in December that it aims to “build an operating business to bring real-world assets (RWA) on-chain through tokenization,” moving away from just buying and holding Ether (ETH).

Today we are launching our updated website to better reflect our mission - modernizing capital markets through real-world asset tokenizationhttps://t.co/QvGkqgccDg pic.twitter.com/DuXJgWoFAR

— ETHZilla (@ETHZilla_ETHZ) January 21, 2026

Rudisill said in December that ETHZilla will “initially focus on aerospace assets such as aircraft engines and airframes to tokenize.”

“Members of our leadership team and board have deep relationships in the aerospace industry, which we are leveraging to build an initial pipeline of assets to tokenize without the need for additional partnerships,” he added. 

Related: EthZilla liquidates $74.5M in Ether to redeem convertible debt

ETHZilla stock slides 95% from peak  

The company is among several crypto treasury companies that saw their share prices surge in 2025, only to slump as crypto markets started heavily retreating later in the year.

Shares in ETHZilla (ETHZ) jumped to a peak of over $100 in August, but have since fallen 95% to trade at $5.24 at the close of market on Friday, according to Google Finance. 

Ether prices have also been falling, with the token 40% down from its August high of nearly $5,000 to trade at $2,800 on Sunday. EthZilla holds 69,802 ETH worth $198.5 million, according to CoinGecko.

Magazine: GameStop ‘likely to sell’ Bitcoin holdings, Ethereum preps for quantum: Hodler’s Digest

Around 70% institutional investors believe Bitcoin is undervalued when priced between $85,000 to $95,000, as it continues to underperform against precious metals and the stock market, Coinbase has found.

Coinbase said in its Charting Crypto Q1 2026 report that its survey of 75 institutional investors and 73 independent investors was taken between early December to early January, found 71% of institutions and 60% of independent investors “feel that [Bitcoin] is undervalued.” 

A quarter of institutional investors said Bitcoin (BTC) was fairly valued, with its price almost entirely staying within the $85,000 to $95,000 range during the survey period, while the remaining 4% said Bitcoin was overvalued.

Survey on whether Bitcoin is undervalued, fairly priced, or overvalued. Source: Coinbase

Bitcoin is currently priced at $87,600, down over 30% from its $126,080 all-time high in October, CoinGecko data shows. Crypto prices have mostly trended sideways and downward since a major market crash on Oct. 10 wiped out more than $19 billion worth of leveraged positions.

Crypto market sentiment hasn’t improved since, with prices struggling to regain momentum amid renewed tariff threats from the Trump administration and intensifying tensions between the US and the Middle East.

Coinbase said this trend could continue, saying that “geopolitical tensions have flared up in several parts of the world, and any escalation of unrest, particularly one that disrupts energy markets, could negatively impact investor sentiment.”

Meanwhile, gold and silver have soared, with gold hitting a record high above $5,000 on Monday and silver doubling in market value since October, while the Standard & Poor's 500 stock market index has risen a modest 3%.

Institutions to hold, buy dips if price falls further

Of the institutional investors surveyed, 80% said they would either hold their crypto positions or buy more in response to another 10% crypto market fall, signaling long-term conviction in the asset class.

Institutional and independent investor responses to a scenario where crypto market prices fall 10% or more. Source: Coinbase

More than 60% said they have either held or increased their crypto positions since October, when Bitcoin set its current high.

Related: US Bitcoin ETFs bleed $1.72B in five-day outflow streak

The institutional investors also see more opportunity ahead, with 54% viewing the current crypto market cycle as either in an accumulation phase or a bear market.

Potential economic tailwinds ahead for crypto

Although monetary policy remains uncertain, Coinbase expects the Federal Reserve to deliver two rate cuts (50 basis points) in 2026, potentially providing a tailwind for risk-on assets like crypto.

More broadly, Coinbase said the “economy looks to be on solid footing,” potentially playing into the crypto market’s favor,  with consumer inflation holding steady at 2.7% in December and the real gross domestic product growing at over 5% in the fourth quarter.

Magazine: A ‘tsunami’ of wealth is headed for crypto: Nansen’s Alex Svanevik

Gold prices have topped $5,000 amid rising geopolitical and global trade tensions, while Bitcoin has fallen toward $86,000 as the divergence between the two assets widened. 

Gold surged to a record high of $5,080 on Monday following a 17% gain so far this year, according to Gold Price, with traders flocking to the precious metal amid fears of a potential US government shutdown and uncertainty over the Trump administration’s escalated tariff threats.

“A likely government shutdown just added fuel to the fire for precious metals,” the Kobeissi Letter said on Monday.

Trade tensions have also increased with another weekend round of tariff threats as US President Donald Trump threatened Canada with a 100% tariff over a China trade deal.

Gold beat Ether (ETH) to the $5,000 milestone, closing out a Polymarket bet placed in early October on which asset would reach it first. ETH prices tanked below $2,800 on Sunday and are now more than 40% down from their August all-time high of $4,946. 

Silver has also surged above $107 per ounce for the first time in history and is up 48% so far in 2026.

Bitcoin and gold correlation crumbles

Bitcoin (BTC) has lost 1.6% on the day, erasing all the gains it made so far this year as it fell to a five-week low just below $86,000 on Coinbase late on Sunday, according to TradingView.

Bitcoin is now 30% below its October peak of $126,000 as the divergence between the digital asset and gold continues to expand. 

Gold prices have surged 83% since the same time last year, while Bitcoin has declined 17%. Source: Google Finance

Investors more interested in gold than treasuries 

Gold is rallying, and cryptocurrencies are down because of the increasing likelihood that the US government will face a shutdown at the end of the month, says Jeff Mei, chief operations officer at the BTSE exchange.

“Additionally, markets are pricing in the likelihood that the Fed will maintain current interest rate levels, given that the economy has been showing stronger growth and employment numbers,” Mei told Cointelegraph. 

“Normally, in uncertain times, capital moves towards safe-haven assets such as US Treasuries and gold, but because of the potential government shutdown and Trump’s recent tariff threats over Greenland, global investors are less inclined towards Treasuries and more towards gold,” he added.

Magazine: GameStop ‘likely to sell’ Bitcoin holdings, Ethereum preps for quantum: Hodler’s Digest

Crypto start-up Entropy is closing down and handing funds back to investors, citing issues with scaling and struggling to find product-market fit.

Entropy founder and CEO Tux Pacific posted to X on Saturday that the crypto automations platform doesn’t have a viable path forward after years of operation.

“After four years, several pivots, and two rounds of layoffs, I’ve decided to wind-up Entropy and return capital to our investors,” Pacific said. 

Source: Tux Pacific

Entropy launched in late 2021 initially as a decentralized self-custody solution, with crypto venture capital giant Andreessen Horowitz backing it alongside Coinbase Ventures as part of a $25 million seed funding round in June 2022.

Pacific said that over the second half of 2025, Entropy was developing a crypto automations platform integrated with artificial intelligence, in a similar fashion to mainstream workflow platforms such as Zapier. 

Related: How AI crypto trading will make and break human roles

However, Pacific said that “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.”

“After four hard years working in crypto, I decided that the best I could do has already been done: it was time to close up shop.”

Another a16z project hands back funding 

Entropy’s wind-up comes after the  a16z-backed decentralized social networking protocol Farcaster said on Thursday it would return $180 million in capital to investors amid a takeover by infrastructure provider Neynar.

Farcaster co-founder Dan Romero quashed rumours that the platform was shutting down via X, noting Neynar would steer the project in a more developer-focused direction, with Farcaster still having strong usage metrics. 

Magazine: ‘If you want to be great, make enemies’: Solana economist Max Resnick 

Around $100 billion was wiped from the crypto market late on Sunday, as uncertainty around another potential partial US government shutdown caused traders to sell off.

Senate Democrats threatened to block a funding package if it included money for the Department of Homeland Security, which oversees Immigration and Customs Enforcement, after federal agents shot and killed a man in Minneapolis on Saturday.

“Democrats sought common sense reforms in the Department of Homeland Security spending bill, but because of Republicans’ refusal to stand up to President Trump, the DHS bill is woefully inadequate to rein in the abuses of ICE. I will vote no,” said Senate Democrat Leader Chuck Schumer.

“Senate Democrats will not provide the votes to proceed to the appropriations bill if the DHS funding bill is included,” he added.

TradingView data shows the crypto market cap dropped from $2.97 trillion to $2.87 trillion in six and a half hours by Sunday at 9:30 pm UTC, pushing Bitcoin (BTC) down 3.4% over the last 24 hours.

Altcoins were hit even harder, with Ether (ETH) down 5.3% in the last day.

Over $360 million worth of leveraged crypto positions have also been flushed in the past day, with $324 million worth of long positions liquidated, Gate data shows.

Odds of shutdown by end of January rise

Bettors on prediction markets Kalshi and Polymarket have backed up to 80% odds of the US government shutting down by Saturday, Jan. 31.

Kalshi odds on a government shutdown by Jan. 31 surged from below 10% on Saturday to 78.6% on Sunday, while Polymarket odds showed a similar surge to 80%.

Odds of a US government shutdown by Saturday, Jan. 31, are at 80% on Polymarket. Source: Polymarket

Adding to traders' fear of a downturn was US President Donald Trump threatening to raise tariffs on Canada to 100% if the country strikes a deal with China, and the US military deploying warships to the Middle East amid rising tensions with Iran.

Crypto prices fell during the last shutdown

Crypto investors have a fresh memory of how market prices fare during US government shutdowns.

During the record 43-day US government shutdown spanning from Oct. 1 to Nov. 12, Bitcoin fell from its all-time high of $126,080 to below $100,000, driven in part by prolonged disagreements in Washington but also the Oct. 10 crypto market crash, which was in part sparked by Trump’s tariff threats with China.

Bitcoin’s change in price during the last US government shutdown. Source: CoinGecko

Related: US Bitcoin ETFs bleed $1.72B in five-day outflow streak

Since Oct. 10, gold has strongly outperformed Bitcoin, suggesting that most investors continue to favor traditional safe-haven assets during heightened geopolitical and macroeconomic uncertainty.

Meanwhile, the Crypto Fear & Greed Index, tracking Bitcoin and crypto market sentiment, fell five points on Monday to 20 out of 100, marking six days straight stuck in the “Extreme Fear” zone.

Magazine: A ‘tsunami’ of wealth is headed for crypto: Nansen’s Alex Svanevik

The hashrate of FoundryUSA, a digital asset advisory firm with the world’s largest Bitcoin (BTC) mining pool, has curtailed its hashrate by about 60% since Friday in response to the severe winter storm impacting large swaths of the United States.

“Bitcoin hashrate on FoundryUSA alone is down by nearly 200 exahashes per second (EH/s), or 60%, since Friday amid continued curtailment. Temporary block production has slowed down to 12 minutes,” according to TheMinerMag. 

FoundryUSA still commands about 198 (EH/s) of hashing power, accounting for about 23% of the global mining pool hashrate, data from Hashrate Index shows. 

A breakdown of hashing power controlled by different Bitcoin mining pools. Source: Hashrate Index

The Bitcoin network’s hashrate is the total amount of computing power deployed by Bitcoin mining operators to secure the proof-of-work protocol.

The curtailment has affected other mining pools serving users in the US, including Luxor, TheMinerMag reported on Saturday, as winter storm Fern sweeps through the US and forces miners to adjust their energy usage to remove stress from grid infrastructure. 

Related: Tennessee city clears path for crypto mining, data centers with new zoning rules

Bitcoin miners can balance the energy grid in times of emergency

Bitcoin miners act as a controllable load resource for public electrical grid infrastructure, adjusting their energy needs to balance the grid during times of peak demand and low consumer usage.

Too much energy within an electrical grid system can damage energy infrastructure during times of low demand, and must be safely dumped to prevent harm to grid components and individuals.

Bitcoin miners can power their mining machines on when demand is too low, siphoning otherwise dangerous levels of power away from the grid. Conversely, they can turn their machines off during times of peak demand to allow energy to flow to consumers.

Winter storm Fern is impacting large swaths of the US. Source: The Weather Channel

The current winter storm in the US features a mix of snow, ice and freezing rain throughout the Southeastern US, the Northeast, and parts of the Midwest, according to radar forecasts from The Weather Channel.

The storm is projected to extend about 1,800 miles, with widespread power outages affecting more than 1 million residents, The Weather Channel reported. 

Magazine: AI may already use more power than Bitcoin — and it threatens Bitcoin mining

GameStop moves entire Bitcoin stash, signaling potential sale: CryptoQuant

GameStop has transferred its entire Bitcoin holdings to Coinbases institutional trading platform, sparking speculation that the video game retailer may be reconsidering its Bitcoin treasury strategy.

GameStop throws in the towel? blockchain intelligence platform CryptoQuant asked in a post to X on Friday after noticing that GameStop moved its entire 4,710 Bitcoin stash worth more than $422 million to Coinbase Prime.

CryptoQuant said the transfer was likely to sell the holdings, noting that a sale with Bitcoin at $90,800 would mean GameStop realizing around $76 million in losses from its Bitcoin bet.

GameStop accumulated 4,710 Bitcoin across several investments in May at an average purchasing price of $107,900. 

Ethereum prepares for quantum era with new security team and funding

The Ethereum Foundation has made post-quantum security a central focus of the networks long-term roadmap, announcing the formation of a dedicated Post Quantum (PQ) team.

The new team will be led by Thomas Coratger, a cryptographic engineer at the Ethereum Foundation, with support from Emile, a cryptographer closely associated with leanVM, according to crypto researcher Justin Drake.

After years of quiet R&D, EF management has officially declared PQ security a top strategic priority, Drake said in a Saturday post on X. It’s now 2026, timelines are accelerating. Time to go full PQ.

The researcher described leanVM, a specialized, minimalist zero-knowledge proof virtual machine, as a core building block of Ethereum post-quantum strategy.

UBS weighing crypto trading for private banking clients: Report

The worlds biggest global wealth manager, UBS, is reportedly exploring a move to open crypto trading to its wealthiest clients. 

Bloomberg reported Friday, citing a person familiar with the matter, that the Swiss banking giant aims to let select private banking clients in Switzerland trade Bitcoin and Ether first, with a possible rollout to the AsiaPacific region and the United States later.

The person also reportedly said that UBS was currently selecting partners for its crypto offering, although the bank has not publicly confirmed the details.

UBS already runs tokenization pilots such as the uMINT tokenized US dollar money market fund on Ethereum and a Swift-UBS-Chainlink tokenized fund settlement trial, experimenting with putting traditional fund products on blockchain rails even before considering offering spot crypto trading.

CertiK keeps IPO on the table as valuation hits $2B, CEO says

Blockchain security company CertiK is keeping the door open to a future initial public offering, according to co-founder and CEO Ronghui Gu.

Speaking in an interview with Acumen Media on Thursday at the World Economic Forum in Davos, Switzerland, Gu said CertiKs valuation stands at about $2 billion and that pursuing a public listing would be a natural step for the company. However, the CEO said the company would need investment, lots of strategic partnerships to achieve this goal.

We still do not have a very concrete IPO plan, but this is definitely the goal we are pursuing, said Gu, adding that CertiK going public would represent a significant step for Web3 infrastructure companies: 

Many people want to see the success of CertiK, want to see the successful IPO of CertiK, because they view [it as] important not only for CertiK but also for the industry.

SEC dismisses civil action against Gemini with prejudice

The US Securities and Exchange Commissions civil lawsuit against Gemini Trust Company and Genesis Global Capital in the Earn-related unregistered securities case has been dismissed with prejudice.

Court filings show the parties submitted a joint stipulation to dismiss the action on Friday in the US District Court in the Southern District of New York, effectively ending the SECs claim over Geminis crypto lending program with Genesis.

A federal judge still needs to sign off on the joint stipulation to dismiss.

The dismissal comes about nine months after the SEC paused the civil action in April 2024 when then-acting chairman Mark Uyeda was leading the agency.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $88,864 Ether (ETH) at $2,964 and XRP at $1.89. The total market cap is at $3.23 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Kaia (KAIA) at 38.21%, Canton (CC) at 33.% and MYX Finance (MYX) at 32.06%.

The top three altcoin losers of the week are Ethena (ENA) at 20.52%, Arbitrum (ARB) at 18.65%, and ether.fi (ETHFI) at 18.25%. For more info on crypto prices, make sure to read Cointelegraphs market analysis.

Most Memorable Quotations

They need an economic system. They need a financial system. They need a payment system. There is no other alternative, in my view, other than stablecoins to do that right now.

Jeremy Allaire, CEO of stablecoin issuer Circle

Now, Congress is working very hard on crypto market structure legislation Bitcoin, all of them which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom.

Donald Trump, US President

What stands out is that 2024 and 2025 record the highest annual revived supply from long-term holders in Bitcoins history.

Kripto Mevsimi, CryptoQuant contributor

Im talking with probably a dozen governments about tokenizing some of their assets, because this way the government can actually realize the financial gains first and use that to develop those industries.

Changpeng CZ Zhao, former CEO of Binance

650 million people dont have access to a bank account in Africa. With a smartphone you have access to stablecoins, so you can save in a currency that is not exposed to fluctuations of inflation and making you poor.

Vera Songwe, a former UN under-secretary-general

While crypto networks are borderless, adoption is not.

PricewaterhouseCoopers

Top FUD of The Week

Bitcoin trade is over, Bloomberg strategist says in 2026 macro outlook

Bloomberg Intelligence strategist Mike McGlone said he has reversed his long-term outlook on Bitcoin and the broader crypto market, arguing that investors should sell the rallies across risk assets in 2026.

Read also

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In McGlones view, the conditions that once made Bitcoin compelling have changed fundamentally. What began as a scarce, disruptive asset has become part of a crowded and highly speculative ecosystem, increasingly correlated with equities and vulnerable to the same macro forces that drive traditional markets.

He draws parallels with past market peaks, pointing to excessive speculation, the approval of exchange-traded funds and historically low volatility as warning signs. Bitcoin, he argues, has gone from being a hedge against the system to being firmly inside it, and that changes everything.

BitGos IPO pop turns volatile as shares slip below offer price

Shares of digital asset custodian BitGo Holdings have swung sharply since the companys public debut on the New York Stock Exchange on Thursday, with early gains quickly reversing as initial IPO enthusiasm cooled and investors moved to lock in profits.

BitGo priced its initial public offering at $18 a share and it jumped about 25% in its first day of trading, reflecting strong early demand. While the stock closed only modestly higher in its first full session, the rally proved short-lived.

Shares have since fallen below their IPO price, declining as much as 13.4% on Friday, according to Yahoo Finance data.

French authorities investigate data breach of crypto tax platform

Authorities in France have started a preliminary investigation into a breach of cryptocurrency tax platform Waltio that could have compromised users personal data.

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According to a Thursday notice by French cybersecurity authorities, the Paris Public Prosecutor’s Office and the countrys National Cyber Unit were investigating the nature of the stolen data and identities of Waltio users.

The notice warned that users affected by the breach could be targeted in an attempt to move their digital assets under the guise of legitimate security concerns.

According to a Friday report from Le Parisien, a group of hackers called ShinyHunters sent a ransom demand to Waltio following the attack. The hackers obtained personal data from about 50,000 Waltio users, the majority of whom were based in France.

Top Magazine Stories of The Week

A tsunami of wealth is headed for crypto: Nansens Alex Svanevik

Nansen co-founder Alex Svanevik reveals why he thinks “crypto is fundamentally inevitable” and predicts trillions are set to enter.

The critical reason you should never ask ChatGPT for legal advice

ChatGPT can be a source of inexpensive legal advice, but the chat logs can also be used against you in court.

If you want to be great, make enemies: Solana economist Max Resnick

Max Resnick can be controversial, but Ethereum did refocus on L1 scaling after his campaign, and hes making Solana better by reducing MEV.

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The biggest threat to the Bitcoin network is “ambitious opportunists” who want to push through protocol changes, according to Michael Saylor, the co-founder of Bitcoin (BTC) treasury company Strategy.

Saylor’s comments sparked a debate online. Bitcoin maximalist Justin Bechler said the comments were directed toward software developers pushing for non-monetary use cases on Bitcoin, such as non-fungible tokens (NFTs) and onchain images in blocks.

Source: Michael Saylor

“The greatest risk to Bitcoin is quantum,” investor Fred Krueger said, while others like Mert Mumtaz, the CEO of remote procedure call (RPC) node provider Helius, disagreed with Saylor. Mumtaz said:

“Absolute cancer of a mindset. ‘Ambitious people wanting to evolve this technology are our biggest risk.’ Nothing is infallible. certainly not Bitcoin, which has had tons of bugs until now, like all other software — perhaps let's let those bugs stay instead of patching them.”

Several users, including Mark of Bitcoin, cited the ongoing spam wars and Bitcoin Improvement Proposal 110 (BIP-110), a temporary soft fork aimed at filtering out non-monetary data from the Bitcoin ledger.

Saylor’s post inflamed the debate between Bitcoiners who want to ossify the protocol and software developers advocating for expanded features on Bitcoin, like quantum-resistant wallet addresses and onchain file storage. 

The Bitcoin community continues to debate the quantum threat

Quantum computing continues to be a subject of intense debate among the Bitcoin community. Nic Carter, the founding partner of venture firm Castle Island, has repeatedly warned that the protocol needs to move to post-quantum standards as soon as possible.

However, Adam Back, the CEO of digital asset infrastructure company Blockstream, rebuffed Carter’s claims, calling them “uninformed.”

“Bitcoiners and developers are not in denial about defensively doing the research and development to prepare for future quantum computers. But they are just quietly doing research while you make uninformed noise,” Back said.

Source: Adam Back

Bitcoin market analyst James Check said that quantum computing fears are not affecting Bitcoin’s market price, and he attributed the recent market downturn to long-term Bitcoin holders dumping their coins onto the market. 

Magazine: Quantum attacking Bitcoin would be a waste of time: Kevin O’Leary

Bitcoin (BTC) saw multiday lows into Sunday’s weekly close as bulls faced a week of macro uncertainty.

Key points:

Bitcoin heads lower as market nerves about upcoming macroeconomic volatility catalysts boil over.

Downside risks firmly outweigh the odds of upside, BTC price analysis says.

A potential bullish divergence against silver offers a glimmer of hope.

Bitcoin sags into big macro week

Data from TradingView tracked 1.6% losses for BTC/USD, which reached $87,471 on Bitstamp.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Long positions made up the majority of 24-hour crypto liquidations, which passed $250 million, per data from CoinGlass.

Crypto liquidations (screenshot). Source: CoinGlass

Trading resource The Kobeissi Letter attributed market weakness to the prospect of another US government shutdown in the coming days.

BREAKING: Bitcoin falls below $88,000 as $60 million worth of levered longs are liquidated in 30 minutes.

A government shutdown is now expected and President Trump has threatened 100% tariffs on Canada.

US stock market futures will open in less than 7 hours. pic.twitter.com/40GxrMdRTI

— The Kobeissi Letter (@KobeissiLetter) January 25, 2026

“Buckle up for a huge week ahead,” it told X followers, further highlighting President Donald Trump’s tariff threats on Canada, macroeconomic data releases and the Federal Reserve’s decision on interest rates.

The latter, due Jan. 28, was seen as yielding no change to current rates despite pressure from Trump to cut them further.

The latest estimates from CME Group’s FedWatch Tool put the odds of a minimum 0.25% cut at just % at the time of writing.

“Earnings season has arrived and headwinds are mounting on multiple fronts,” Kobeissi added.

Fed target rate probabilities for Jan. 28 FOMC meeting (screenshot). Source: CME Group

BTC price pumps “potential short opportunity”

Among traders, the low time frame BTC price trading range was first on the list of issues to deal with.

“Now, price is currently losing the mid-range which is a bearish sign for continuation to the downside, to the range lows,” trader CrypNuevo wrote in his latest X analysis.

Eyeing exchange order-book liquidity, CrypNuevo put bulls’ line in the sand at $86,300.

“Based on Bitcoin losing the mid-range; HTF liquidations to the downside; and the possible US Gov. shutdown, we still think that the most likely scenario is that Bitcoin drops back to low $80s in the coming weeks,” he concluded. 

“Any short-lived pump this week is a potential short opportunity.”

BTC liquidation heatmap. Soruce: CrypNuevo/X

Others drew attention to a marked increase in open interest into the weekly close.

That's a serious open interest increase... On a Sunday... Right before we have a lot of major macro events...

You guys are nuts.$BTC pic.twitter.com/G14wHhyBbb

— Byzantine General (@ByzGeneral) January 25, 2026

A note of optimism, meanwhile, came from crypto trader, analyst and entrepreneur Michaël van de Poppe.

After both gold and silver printed record highs, Van de Poppe eyed a potential bullish divergence on BTC/XAG.

“For the first time in the history, $BTC might print a bullish divergence against Silver on the 3-Day Timeframe,” he announced on the day.

“What does this say? This does say that the coming week is going to be extremely volatile and could indicate a bottom on this metric and therefore, Silver is likely to peak and money is likely rotating towards other assets.”

BTC/XAG three-day chart with RSI, volume data. Source: Michaël van de Poppe/X

Tezos, a layer-1 proof-of-stake blockchain network, implemented its latest protocol upgrade, Tallinn, on Saturday, which reduced block times on the base layer to 6 seconds.

The latest upgrade is the 20th update to the protocol, which reduces block times, slashes storage costs and reduces latency, resulting in faster network finality times, according to an announcement from Tezos.

Tallinn also allows all network validators, known as “bakers”, to attest to every single block, rather than a subset of validators attesting to blocks, which is how validators verified blocks in previous versions of the protocol, Spokespeople for Tezos explained:

“This is achieved through the use of BLS cryptographic signatures, which aggregate hundreds of signatures into just one per block. By lightening the load on nodes, it also opens the door to further block time reductions.”

The upgrade also introduced an address indexing mechanism that removes “redundant” address data, reducing storage needs for applications running on Tezos.

Spokespeople for Tezos said the address indexing mechanism improves storage efficiency by a factor of 100.

Tezos’ latest upgrade showcases the push for faster and higher-throughput blockchain networks that can handle more transactions per second and reduced settlement times to accommodate a growing number of use cases. 

Related: The 5 busiest blockchains of 2025 and what powered their growth

Block times have come a long way since the first generation of blockchains

The first generation of blockchain networks, like Bitcoin and Ethereum, had speeds of about seven transactions per second (TPS) and 15-30 TPS, respectively.

The Bitcoin protocol produces blocks about every 10 minutes, which presents a challenge for everyday payments and commercial transactions on the base layer.

The Bitcoin protocol produces blocks about every 10 minutes, on average. Source: Mempool

These slow network speeds have prompted both protocols to scale through layer-2 (L2) networks, which handle transaction execution. 

In the case of Bitcoin, this is done through the Lightning Network, payment channels opened between two or more parties that handle a series of transactions off-chain, posting only the net balance to the base layer once the payment channel is closed.

The Ethereum network relies on an ecosystem of layer-2 networks to scale, and takes a modular approach, separating the execution, consensus and data availability layers.

Monolithic blockchain networks, like Solana, combine all these functions into a single layer, instead of scaling through L2’s.

Magazine: Ethereum’s Fusaka fork explained for dummies: What the hell is PeerDAS?

Cathie Wood’s ARK Invest has increased its exposure to crypto-linked equities, adding shares of Coinbase, Circle and Bullish as prices slid across the sector.

According to ARK’s daily trade disclosures for Friday, the ARK Innovation ETF (ARKK) purchased 38,854 shares of Coinbase Global Inc., while the ARK Fintech Innovation ETF (ARKF) added another 3,325 shares, acquiring a total of  $9.4 million worth of the exchange shares. Coinbase shares closed down 2.77% on the day at $216.95.

ARK added a combined 129,446 shares of Circle Internet Group across ARKK and ARKF, a position worth roughly $9.2 million. The firm also added 88,533 shares of Bullish across the same ETFs, investing about $3.2 million. Circle shares were little changed on the day, slipping 0.03% while Bullish shares declined 2% during the session, closing at $35.75.

Alongside the crypto buys, ARK trimmed positions elsewhere in the portfolio, including Meta Platforms, selling 12,400 shares valued at roughly $8.03 million.

Coinbase shares dropped 2% on Friday. Source: Google Finance

Related: Cathie Wood says ARK’s $1.5M Bitcoin bull price hasn’t changed as markets eye rally

Crypto pullback weighs on ARK ETFs

As Cointelegraph reported, the downturn in crypto markets during the fourth quarter of 2025 weighed heavily on several of Cathie Wood’s ARK ETFs. In its quarterly report, ARK pointed to crypto-linked equities as a major source of weakness across its flagship products.

Coinbase emerged as the largest detractor during the quarter, dragging on performance at the ARK Next Generation Internet ETF (ARKW), ARKF and ARKK. ARK said Coinbase shares fell more sharply than Bitcoin (BTC) and Ether (ETH) as spot trading volumes on centralized exchanges declined 9% quarter-on-quarter following October’s liquidation event.

Roblox was the second-largest drag on ARK ETFs, despite posting strong third-quarter bookings growth. Shares fell after the company warned of declining operating margins in 2026 and faced additional pressure following Russia’s ban of the platform.

Related: Cathie Wood still bullish on $1.5M Bitcoin price target: Finance Redefined

ARK Invest sees crypto market reaching $28T by 2030

ARK’s continued interest in the crypto market comes as the firm expects the digital asset market could grow to $28 trillion by 2030, driven largely by rising Bitcoin adoption and price appreciation. In its Big Ideas 2026 report, ARK projected the crypto market would expand at a 61% compound annual growth rate, with Bitcoin accounting for roughly 70% of the total market value.

ARK said that if about 20.5 million Bitcoin have been mined by 2030, the forecast implies a Bitcoin price in the $950,000 to $1 million range. The firm cited growing institutional participation, noting that Bitcoin ETFs and corporate holders increased their share of total supply in 2025.

Magazine: Bitget’s Gracy Chen is looking for ‘entrepreneurs, not wantrepreneurs’

Colombia’s second-largest private pension and severance fund manager, AFP Protección, is preparing to launch an investment fund with exposure to Bitcoin.

Juan David Correa, president of Protección SA, confirmed the initiative during an interview with local outlet Valora Analitik. According to Correa, access to the product will be limited and granted only through a personalized advisory process designed to assess each investor’s risk profile. Only clients who meet specific criteria will be able to allocate a portion of their portfolios to Bitcoin (BTC).

Nifty Gateway, one of the earliest and most recognizable NFT marketplaces, is set to shut down operations next month, marking another high-profile exit amid the sector’s prolonged downturn.

“Today, we are announcing that the Nifty Gateway platform will be closing on February 23, 2026,” the Gemini-owned platform wrote in a Saturday post on X, adding that it has already entered withdrawal-only mode, giving users roughly one month to move any remaining NFTs or funds off the site.

A shutdown notice is now displayed on Nifty Gateway’s homepage, and users can withdraw assets either through a linked Gemini Exchange account or directly to their bank via Stripe.

Nifty Gateway said customers with NFTs, ETH or US dollar balances would receive email instructions on withdrawing their assets. The company urged users to complete the process ahead of the February deadline.

Nifty Gateway announces closure. Source: Nifty Gateway

Related: What the NFT Paris cancellation says about the current state of the NFT market

Nifty Gateway topped $300 million in sales at its peak

Launched in 2020, Nifty Gateway played a central role in bringing NFTs to a mainstream audience. Unlike many crypto-native platforms at the time, it allowed users to purchase digital collectibles using credit cards, lowering the barrier to entry. The marketplace became known for curated “drops” from high-profile artists and creators, including Beeple and Grimes.

At the height of the NFT frenzy in mid-2021, Nifty Gateway facilitated more than $300 million in sales. That momentum faded as the broader NFT market cooled. In April 2024, the company stepped away from operating a traditional marketplace and rebranded as Nifty Gateway Studio, shifting its focus toward onchain creative projects and brand partnerships.

Gemini, which acquired Nifty Gateway in 2019, said the closure would allow the crypto exchange to concentrate on its broader product strategy. “This decision will allow Gemini to sharpen its focus and execute on the vision of building a one-stop super app for customers,” the company said, adding that it will continue to support NFTs through the Gemini Wallet.

Related: US prosecutors drop OpenSea NFT fraud case after appeals court reversal

Animoca acquires Somo as NFT market shows signs of life

Earlier this month, Animoca Brands acquired gaming and digital collectibles firm Somo, bringing its playable and tradable collectibles into Animoca’s wider blockchain ecosystem. The company plans to integrate Somo using shared infrastructure and partnerships, positioning the deal as a strategic extension of its existing gaming and NFT portfolio.

The acquisition came as the NFT market showed a short-term rebound at the start of 2026. Total NFT market capitalization rose about 20% in the first two weeks of the year, climbing from roughly $2.5 billion to over $3 billion, with a sharp $300 million jump occurring in a single 24-hour period alongside higher trading volumes.

Magazine: Bitget’s Gracy Chen is looking for ‘entrepreneurs, not wantrepreneurs’