Crypto Market
|
Crypto |
BTC |
ETH |
|
Weekly High |
$ 93,252 |
$ 3,222 |
|
Weekly Low |
$ 86,319 |
$ 2,802 |
BTC and ETH Market Insight
The cryptocurrency market remained under pressure, extending its period of consolidation, driven by escalating geopolitical developments—namely, reports of U.S. President Donald Trump reiterating threats to acquire Greenland and proposing 10% tariffs on Denmark and seven other European nations that opposed the plan. Compounding this, Japan’s 40-year government bond yield reached an all-time high of 4% following intense selling pressure. The surge in yields reflected market concerns that a potential early election could lead to more expansionary fiscal policy, heightening fears of a widening budget deficit and raising the prospect of official intervention.
The implied probability of a 25 basis-point rate hike by the Bank of Japan remained in the 24–30% range, indicating persistent trader caution regarding a rapid unwinding of yen carry trades.
Even after factoring in the lingering carry-trade effects, the aforementioned factors continued to overshadow market sentiment. Conditions remained volatile and choppy, with capital rotating into safe-haven assets such as gold, silver, and select commodities, while high-beta assets faced sustained selling. Bitcoin briefly fell below $90,000 and has since entered a consolidation phase following the early-week decline. Ethereum and most major altcoins mirrored and exhibited similar weakness, breaching key support levels before testing overhead resistance in search of a modest recovery.
The impact of the above events still looming the market. Sentiment was choppy along with high volatility and risk-off moves towards safe heaven asset like Gold and Silver and other commodities rather than high beta assets. Bitcoin (BTC) dipped below $90,000 and current in consolidation stage after an early week sell off. Ethereum (ETH) and other major alt coins mirrored and followed suit, slipping just under key support levels and now probing resistance as they look for a modest bounce to rebuild momentum.
In summary, the week was characterised by heightened volatility and an absence of convincing bullish catalysts, fostering a cautious outlook as January draws to a close.
Upcoming Macro Calendar - Source: Trading Economics
Options Market
ETF netflows reversed sharply into heavy outflows, totaling over $1B for BTC and ~$580M for ETH Jan 20-23, signaling reduced institutional demand and rotation pressure. BTC and ETH options markets exhibited cautious, range-bound activity amid accelerating ETF outflows, with BTC Implied volatility holding slightly above Realised Volatility indicating modestly rich pricing, while ETH short-term IV dipped below RV suggesting near-term compression. Put skew sharpened on the pullback, reflecting defensive hedging in both assets. Long protective put spreads for BTC $85k-$88k or ETH $2.8k dips amid outflow risks; alternatively, long strangles to capture potential IV rebounds if macro headlines trigger breaks from $88k-$92k pinning.
Altcoins and Blockchain News
- South Korea delays the second phase of the “Virtual Asset Act” due to disputes over stablecoin-related provisions.
- Japan may lift its ban on crypto ETFs by 2028, with SBI and Nomura actively developing related products.
- Blockchain security audit firm CertiK is exploring a potential IPO, targeting a valuation of around $2 billion.
- Binance is considering relaunching tokenized stock trading, allowing investors to purchase fractional shares.
- U.S. lawmakers propose multiple amendments to the crypto market structure bill, including a ban on digital asset trading by the President and other officials.
- The CFTC Chair announces the launch of the "Future Proof" initiative to upgrade the agency’s approach to crypto regulation.
- U.S. Treasury Secretary states that seized Bitcoin will be included in the government’s digital asset reserves.
- According to validatorqueue, the number of ETH waiting to join Ethereum’s PoS network has been growing since December 26, 2025, now exceeding 3 million—an all-time high.
- The New York Stock Exchange announces it is developing a tokenized securities platform.
Macro
The major benchmarks finished the week lower with the increasing geopolitical uncertainty: the DJIA lost 0.5%, the S&P 500 dropped 0.4%, and the Nasdaq shed 0.1%. The Chinese stock market finished a mixed week: the Shanghai Composite Index rose 0.84%, the CSI 300 lost 0.62% and the Hang Seng index shed 0.36%.
