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XRP has broken above the $2.10 price level, but on the surface, the chart is not comfortable. Red candles, falling sentiment, and growing chatter about weakness are still dominating conversation. 

According to a crypto analyst on X, that reaction may be exactly what larger players are counting on, especially because a closer look at on-chain data shows a very different story is quietly unfolding below the price action.

Price Weakness And Retail Capitulation On Center Stage

XRP started the year on a good note, with a break above $2 and then pushing as high as $2.41 before facing rejection. This rejection, in turn, caused the altcoin to fall to as low as $2.05. The analyst pointed to the loss of the $2.23 level during the breakdown as the moment retail confidence began to crack. 

As XRP’s price action trended lower to $2.05, fear-based selling increased, and this was shown on the charts that appeared increasingly bearish. From a short-term perspective, the move looked like confirmation that sellers quickly took control from buyers. 

Behind that visible decline, there are activities from institutional participants that do not show up on standard price charts. When retail participants were selling, XRP-related ETFs recorded a net inflow of $4.9 million in a single day. 

The lower panel of the chart below shows this divergence, showing total holdings of Spot XRP ETFs climbing steadily even as the price moved lower. This contrast can be described as a transfer of wealth in plain sight, showing how institutional buyers were using the pullback to add exposure when retail traders were selling.

Supply Shock Shows Quiet Accumulation

The message is that what looks like weakness on the surface may be setting the stage for a very different outcome once selling pressure from retail participants fades. 

However, another detail raised by the analyst is the movement of the token off exchanges. Roughly $22 million worth of tokens reportedly left trading platforms in the past 24 hours, reducing readily available supply. 

The pattern extends back to late 2025, when balances held on crypto exchanges began a steady decline. Data from Glassnode shows that total exchange-held XRP has now fallen below 2 billion tokens, which is a notable decline from levels above 4 billion XRP recorded around January 2025.

This reduction in exchange supply has not yet translated into an extended upside move in the altcoin’s price since it started correcting from its July all-time high, but it does point to quiet accumulation taking place below the surface. 

As some holders sell into weakness, a smaller group of market participants appears willing to absorb supply. That divergence is why several analysts have cautioned the XRP community against panic selling and getting shaken out.

As the Senate Banking Committee prepares to mark up the newly proposed draft of the crypto market structure bill, the DeFi Education Fund has released a list of amendments it strongly urges senators to oppose. 

In a recent post on social media platform X (formerly Twitter), the organization expressed concerns that the descriptions of the draft indicate potential harm to decentralized finance (DeFi) and could negatively impact software developers.

Red Flags Emerge From Crypto Market Structure Bill Draft 

In its message, the DeFi Education Fund emphasized the importance of safeguarding the integrity of the emerging DeFi landscape and called on senators to consider the far-reaching consequences of these proposed changes. 

Among the amendments highlighted were Amendment #42, proposed by Senators Reed and Kim, which seeks to authorize the Treasury to sanction smart contracts and centralized platforms involved in illicit activities. 

This amendment raised significant red flags for advocates who worry about its implications for innovation and operational flexibility within the decentralized finance ecosystem.

Another amendment of concern, Amendment #45 by Senator Reed, aims to create a specific definition for digital assets under the Bank Secrecy Act. 

Similarly, Amendment #47, also from Senator Reed, intends to remove a provision related to federal criminal offense concerning unlicensed money transmission. 

These changes, according to the DeFi Education Fund, loom dangerously over the operational landscape for developers and financial institutions that interact with digital assets.

Stifling DeFi Growth

Additionally, Senators Cortez Masto’s proposed amendments, specifically #72 and #73, aim to narrow the definition of non-controlling developers and expand the authority of the Financial Crimes Enforcement Network (FinCEN) alongside the Treasury for blockchain-enabled platforms. 

Amendments #74 and #75 further seek to strengthen existing laws related to money transmission and prohibit transactions involving unlawful DeFi protocols, which the Fund suggests could stifle the industry’s growth.

Amendment #104, proposed by crypto-skeptic Senator Elizabeth Warren, also drew attention by striking a key distribution carve-out for crypto offerings. 

This follows similar calls by Summer Mersinger, CEO of the Blockchain Association, who recently claimed that the “Big Bank Lobby” is pushing Congress to change key provisions of the already enacted GENIUS Act concerning stablecoin rewards, further highlighting the current state of the future of crypto in Congress. 

Featured image from DALL-E, chart from TradingView.com 

As the price of Ethereum slowly picks up pace following a brief rebound, a significant portion of the leading altcoin is currently being locked away in staking activity. Many institutions, such as Bitmine Immersion, have ventured into ETH staking, demonstrating the growing faith and interest in the investment method.

Bitmine’s Ethereum Staking Gets A Boost

In the burgeoning cryptocurrency market, Bitmine Immersion, a leading public company, continues to make decisive steps into the growing Ethereum ecosystem. Bitmine Immersion’s step into the ecosystem is evidenced by the company’s rising participation in ETH staking.

The public firm keeps extending its staking operations and reinforcing its commitment to on-chain yield generation following its latest move. This move was reported by Lookonchain, a popular on-chain data analytics platform, in a recent post on the X platform. Furthermore, the move coincides with staking’s continued development from a specialized tactic to a fundamental element of institutional cryptocurrency involvement, providing both recurrent benefits and a closer alignment with network security.

As seen in the report, the firm, led by industry leader and billionaire Tom Lee, has staked another 154,208 ETH valued at a staggering $478.77 million. Interestingly, the massive ETH staking was carried out within a 6-hour time frame, reflecting the firm’s robust conviction in the altcoin’s long-term prospects.

After the latest staking operation, the company has now staked a total of 1.344,224 ETH worth approximately $4.17 billion. By increasing its ETH stake, Bitmine Immersion is demonstrating its interest in Ethereum, from scaling upgrades to the ongoing expansion of DeFi and tokenized assets. 

SharpLink Deepens Exposure With Expanded Staking Efforts

Another company making waves in the Ethereum staking is SharpLink Gaming, a move that was initiated alongside the launch of its ETH treasury since June 2. According to a report from the firm’s official page on X, they recently generated over 500 ETH in staking rewards last week.

SharpLink ETH staking rewards underscore its expanded participation in on-chain yield and increasing interest in the altcoin and its ecosystem. This growth highlights a larger trend as more businesses are moving from passive holding to active network participation, making Ethereum staking a key component of their business strategy.

With this additional ETH, SharpLink’s total cumulative staking rewards are now sitting at 11,157 ETH since it was launched. By dedicating more of its ETH holdings to validators, the firm is indirectly contributing to Ethereum’s security and decentralization while reaping the benefits of a constant flow of rewards.

Prior to the development, SharpLink deployed $170 million in ETH with a first-of-its-kind enhanced yield on Linea. Specifically, this move integrates native ETH yield, restaking rewards from Eigencloud, and direct incentives from Linea and Etherfi within an institutional-grade qualified custodian with the help of Anchorage. SharpLink has declared this the most productive way to hold ETH with institutional-grade infrastructure.

Famous legal expert Bill Morgan has highlighted how Ripple was unable to promote XRP over the past few years due to its former legal battle against the U.S. Securities and Exchange Commission (SEC). 

Why Ripple Was Unable To Promote XRP In The Past

In an X post, Bill Morgan stated that Ripple could not promote XRP or the XRP Ledger in the past for fear of being sued by the SEC for promoting and offering an unregistered security. He noted that despite that, the company was still sued by the regulator. The lawyer’s response followed XRPL stakeholder Wietse’s comments about how the XRPL has a track record of regularly being too early and also being too late. 

Wietse made this comment after XRP community member Crypto Eri pointed out that the XRP Ledger has supported tokenized gold since, though it hasn’t received enough publicity. Wietse added that the network is too early for people to notice and realize how great certain things are, and too late for others, causing too little, too late catch-up. 

However, Bill Morgan believes that XRP and XRP Ledger would have gotten more publicity if Ripple had been able to actively promote the altcoin in the past. He noted that during the SEC lawsuit, the crypto firm barely mentioned XRP. Meanwhile, the lawyer noted that Bitcoin, Ethereum, and other cryptos were promoted with impunity and that former SEC official Bill Hinman effectively promoted ETH while in office.  

The lawyer added that, to this day, Ripple’s promotion of XRP and the XRP Ledger remains muted. He stated that the company does it by stealth under the cover of acquisitions and RLUSD. Morgan believes that this is nothing compared to how Michael Saylor actively talks about and promotes Bitcoin. 

XRP Is Still At The Centre Of Ripple’s Vision

Ripple has, in recent times, reiterated that XRP is at the centre of its vision. In his New Year’s message, the firm’s CEO, Brad Garlinghouse, stated that the altcoin has been and will continue to be the heartbeat of that vision. This came as he noted that their two major acquisitions last year, Ripple Prime and GTreasury, will greatly accelerate and expand their ability to deliver on their vision, which is to enable the Internet of Value. 

He added that building and using crypto infrastructure, updating their global financial plumbing, and rethinking legacy systems don’t happen overnight. As such, they will continue to take the long view of what crypto-based assets such as XRP and RLUSD can do rather than chasing cycles and hype. 

At the time of writing, the XRP price is trading at around $2.16, up over 5% in the last 24 hours, according to data from CoinMarketCap.

United States President Donald Trump’s family-backed crypto firm has applied for a national trust bank charter, and one of the Senate’s most vocal financial critics wants regulators to stop the process until the President severs his financial ties to the venture.

According to filings and public statements, the firm aims to use the charter to issue and manage a dollar-pegged stablecoin called USD1, which has grown quickly since launch.

Warren Raises Conflict Concerns With The OCC

US Senator Elizabeth Warren sent a formal letter to Comptroller Jonathan Gould asking the Office of the Comptroller of the Currency (OCC) to pause its review of the application until Trump divests and fully eliminates financial links to World Liberty Financial, reports say.

The senator wrote that approving a federally chartered bank while the sitting President retains ties to the business could create serious government ethics problems.

The Company’s Plan And Its Scale

World Liberty Financial wants a national trust bank that would offer stablecoin issuance, custody and conversion services.

The stablecoin USD1 has reached more than $3.3 billion in circulation since its launch, a figure regulators and lawmakers are watching closely as the firm seeks federal oversight.

The move would place certain crypto activities under the same kind of supervision given to traditional trust banks.

Pushback And Political Risk

Reports note that Warren’s demand is rooted in a concern about the public’s trust in regulators. She asked the OCC for a written reply by January 20, highlighting the urgency of the matter for lawmakers who oversee banking rules.

Other Democrats have signaled similar worries about the optics and legal questions that could follow if a regulator reviews a bank linked to the incumbent President.

Industry Context And Reaction

Several crypto firms have recently sought national charters or conditional approvals, prompting a broader debate over how stablecoins should be regulated. Supporters of bank charters say federal oversight can protect customers and bring clarity.

Critics argue that when a highly political figure is connected to an applicant, extra caution is required so that regulatory independence is preserved. Reporting on this case has focused on both the bank application and the potential effect on trust in federal agencies.

Other Developments Around The Firm

World Liberty and related affiliates have been active on multiple fronts, including new product launches and international talks. Some outlets noted a newly announced partnership with external parties to explore broader payment uses for USD1, an effort that underlines how quickly the stablecoin has spread.

Featured image from Inc/Getty Images, chart from TradingView

With the latest bounce on Tuesday, the Bitcoin price has moved back above the $94,000 level, which appears to have reignited bullish sentiment across the market. A confirmed indication of the renewed bullish sentiment is the recent drop in selling pressure from investors and the futures market.

Futures Market Sellers Are Stepping Back

The cryptocurrency market is showing upward strength with Bitcoin reclaiming resistance levels that previously halted its upside attempts. While the price of BTC is trending upwards once again, selling pressure on the flagship asset from the futures market is declining sharply.

Following weeks of aggressive short positioning and high funding rates that exacerbated downward movements, indicators currently reflect a substantial cooling of sell-side activity. As outlined by Darkfost, a market expert and author at CryptoQuant, the selling pressure has now divided by 10 after reaching a monthly average peak of $489 million in the BTC Net Taker Volume metric.

This shift in sentiment is a sign that open interest is returning to normal, liquidations have slowed, and traders are reducing rather than increasing their negative wagers. Although this does not guarantee an immediate rise in BTC’s price, it alleviates one of the biggest headwinds that has affected prices in recent sessions.

The Bitcoin Net Taker Volume metric provides a net volume, which aids in determining who is controlling the futures order books. Furthermore, it is simpler to identify changes in trend and trading activity when the data is smoothed using a monthly average. Currently, Darkfost highlighted that sellers are still slightly dominating the orders, with over $51 million worth of trades. 

While the metric has not yet flipped into positive territory, the data shows that it is gradually approaching it. According to the expert, it is quite encouraging when traders begin to change their approach, especially considering the significant impact futures volumes have on price action.

It is worth noting that the BTC price action has experienced a stable trend since the decline in selling pressure kicked off. Thus, if Net Taker Volume were to turn positive once more, it would undoubtedly set off a bullish reversal for Bitcoin.

Is Bitcoin Volatility Heading For Rock Bottom?

As the bullish sentiment returns to the market, the ongoing volatility is starting to fade, leading to a period of low risk. Axel Adler Jr., another author at CryptoQuant, has shared an update revealing that BTC’s realized volatility has compressed significantly, reaching approximately 23%, a level that statistically rarely persists for long.

In the past, these compression regimens have resulted in a dramatic range expansion. With realized volatility now sitting at 23.6%, compression has reached a critical threshold, bringing BTC to a crucial stage that could play a role in its next move. 

At the time of writing, the price of BTC was trading at $94,890, indicating a more than 3% increase in the last 24 hours. Its trading volume has also increased significantly, rising by nearly 61% over the past day.

The broader crypto market is seeing an unexpected uptick, with the Bitcoin, Ethereum, and Dogecoin prices among the top coins recording gains. This sharp increase in value follows the release of US economic data, which indicates positive trends in unemployment and consumer spending. Additionally, potential regulatory changes stemming from a proposed bill are also fueling market momentum and boosting investor confidence across the sector. 

Bitcoin, Ethereum, And Dogecoin Prices Rally Amid Positive Economic Data

After consolidating for days following their last rebounds, Bitcoin, Ethereum, and Dogecoin are surging again amid a series of recent US data reports. The US Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) for all urban consumers earlier on Tuesday, January 13, covering December 2025. 

The CPI report revealed that prices rose 0.3% on a seasonally adjusted basis last month, with the year-over-year all items index up 2.7% unadjustment. The shelter index increased 0.4% in December, making it the largest contributor to the overall rise. Meanwhile, food prices rose 0.7% both at home and away, and energy rose 0.3%. This increase in CPI data tends to affect cryptocurrency price movements, as moderate inflation often reduces fears of aggressive rate hikes by the US Federal Reserve (FED), encouraging investors to allocate funds to alternative stores of value like BTC and higher risk assets like ETH and DOGE. 

In addition to the CPI data, the US jobs report, released on January 9, showed that 50,000 jobs were added in December 2025. Although this was below the revised 56,000 in November and lower than the initial forecast of 60,000, it was still a significant and positive result for investors. While changes in job reports do not directly affect cryptocurrency price action, they can influence investor sentiment by increasing the likelihood of an interest rate cut. 

The crypto market has also been bullish ahead of the US Senate Banking Committee’s vote on the CLARITY Act on January 15, 2026. If passed, the bill is expected to provide clearer legal frameworks for digital assets in the US. Subsequently, the regulatory progress will reduce uncertainty and encourage more institutional participation in the crypto market.

Overall, the combination of the US CPI release, jobs report, and potential regulatory clarity is what’s driving the market. Traders are responding favorably to these developments, reflecting renewed optimism. 

How Much BTC, ETH, And DOGE Rose Today

Fueled by positive economic data, Bitcoin’s price has increased by over 3% so far today, rising from around $91,000 to over $94,000 at the time of writing. CoinMarketCap data also shows that Ethereum has seen even stronger gains, surging more than 6% to trade above $3,300. Meanwhile, Dogecoin has risen by over 6%, reaching $0.148.

A top policy official at crypto firm Paradigm warned this week that a broad overhaul of US crypto rules could take years of agency work to finish.

Justin Slaughter, Paradigm’s vice president for regulatory affairs, said the law itself would only begin a longer process of writing dozens of detailed rules that agencies must draft, publish for comment, and finalize.

Lawmakers Unveil Draft Bill

On January 13, 2026, US senators released a draft bill meant to clarify which tokens are securities or commodities and to set who regulates spot crypto trading.

The draft would give the Commodity Futures Trading Commission authority over many spot markets and includes measures aimed at limiting how stablecoins are used to pay interest, among other provisions.

Rulemaking Could Stretch For Years

Slaughter pointed out that the bill would require about 45 separate, detailed rules to be written by regulators before its goals could be fully enforced.

That is a heavy technical lift. He compared the likely timeline to rules written after the Dodd-Frank law, which took roughly three to eight years to be finalized for many parts of the financial system.

Ok, so here are the main takeaways I have.

First, this bill is still missing a lot of things. There’s nothing at all on ethics (which is going to be a big hang-up for people) nor is there anything on a quorum requirement for the Commissions. The Dems won’t sign a bill that… https://t.co/2ckoCO6QlW

— Justin Slaughter (@JBSDC) January 14, 2026

That comparison matters because it shows how slow the work can be even when lawmakers act quickly. Agencies must draft proposals, take public comments, revise drafts, and then publish final rules. Each step can be delayed by legal challenges, staffing limits, or political shifts.

Industry Groups Prepare For Phased Change

Exchanges, banks, and stablecoin firms have already begun drafting compliance plans. Some industry players say they prefer the bill’s tilt toward the CFTC for spot oversight, believing it could ease certain market practices.

Others worry that long rulemaking windows will leave uncertainty for months, or even years, while firms try to follow shifting guidance.

What Could Slow Things Down

Among the likely bottlenecks: fights over who enforces which rules, debates on how decentralized finance fits under old statutes, and political turnover.

Slaughter warned that parts of the rulemaking might span two presidential terms before everything is settled. That would leave the sector operating under a mix of new guidance and legacy rules for a long time.

Lawyers And Regulators Step Into The Fray

Regulatory staff at the SEC and CFTC have already ramped up work on crypto issues. The SEC has signaled plans to update long-standing securities rules to better address tokenized instruments.

At the same time, the CFTC is preparing market-structure and custody guidance tied to its growing role. These agency moves will shape the final form of the technical rules required by whatever law, if any, becomes binding.

Featured image from Unsplash, chart from TradingView

The Cardano Foundation is backing an on-chain “info action” that would route up to $75 million from Cardano’s treasury into a new, Draper Dragon-managed ecosystem fund targeting a total $80 million raise, with a mandate to invest in Cardano-native startups while sending proceeds back to the treasury over time.

If approved, the vehicle, dubbed the Cardano x Draper Dragon Ecosystem Fund (the “DDC Fund”), would run for at least six years, deploy venture-style capital across early-stage teams and ecosystem growth programs, and report performance via a public dashboard and quarterly disclosures, the Foundation said in a forum post published roughly a day before the announcement.

Cardano Moves To Turn Its Treasury Into A VC Engine

The proposal is designed as a budget info action that would authorize three treasury withdrawal tranches over 438 epochs: a fixed $15 million first tranche, followed by two tranches targeting $30 million each in years two and four. The withdrawals are denominated in ADA and capped at 175 million ADA in aggregate, with per-tranche caps of 50 million ADA for the first and 85 million ADA for the second and third.

The remaining $5 million to reach the $80 million headline size is expected to come from qualified external limited partners (eLPs), a structure the post frames as both incremental capital and a way to “prov[e] the value proposition of Cardano investments to a larger audience.”

Cardano’s pitch is that the fund turns the treasury from a passive pool into a compounding capital vehicle. “The goals of this proposal are straightforward and ambitious: Deliver a return multiple back to the Treasury; make Cardano self-sustaining while increasing the ecosystem’s total value locked (‘TVL’), on-chain activity, and developer participation; and transform the Treasury from a passive reserve into an active growth engine that compounds Cardano ecosystem value,” the post said.

Under the proposed structure, Draper Dragon acts as general partner and controls investment decisions. An affiliate adviser, described as an “exempt reporting adviser regulated by the Securities Exchange Commission”, would provide due diligence and advisory support. The Cardano Foundation positions itself as an enabler rather than an investment decision-maker, taking responsibility for orchestrating the legal setup and administering the proposal under the Cardano constitution.

To route economics back to the treasury, the plan creates a Cayman Islands special purpose vehicle (SPV) that would serve as the fund’s limited partner on behalf of the treasury. The SPV is described as “ownerless” and intended to exist solely for the economic benefit of the treasury, with an initial three-director setup that includes an independent director, a Foundation director, and a community-elected “Community SPV Director.”

Targets Of The DCC Fund

The DDC Fund’s financial targets are framed in institutional VC terms: a roughly 3x gross multiple on invested capital and a 25%+ IRR, benchmarked against institutional blockchain and crypto venture funds, with the post stressing projections are illustrative and not performance guarantees.

On the ecosystem side, the ambition is explicit: contribute to increasing Cardano TVL from “the current $300M to $3B+,” split between $1.5B+ in RWA and $1.5B+ in DeFi, while also pushing higher on-chain usage, network revenue, and developer participation.

The treasury-funded $75 million would be allocated across direct investments, growth capital, and educational support, plus fund and administration costs. Direct investments are slated to take the largest share ($50 million), while growth capital ($11.5 million) and educational support ($6 million) fund marketing, liquidity initiatives, exchange introductions, and Draper University programming such as accelerators and hacker houses.

Because withdrawals are voted through governance over time, the plan bakes in a 20% buffer for ADA price fluctuations, and allows the GP discretion to time conversions to USD or stablecoins and to defer capital calls for up to six months. Excess value from a rising ADA price is meant to reduce later tranches; shortfalls can be handled via the buffer, deferrals, top-up governance actions, or adjustments within the tranche and aggregate caps.

The post also outlines failure modes. If treasury withdrawals repeatedly fail, specifically, “at least three successive Treasury withdrawals fail to pass within a calendar year”, the GP may wind the fund down and liquidate assets in a controlled process.

Transparency is promised via a public KPI dashboard and quarterly fund reports, plus AMAs and roundtables, but with a clear boundary: deal terms, valuations, and certain portfolio information would remain confidential, consistent with “standard” venture fund practice.

At press time, ADA traded at $0.4215.

Impersonation scams exploded in 2025, growing by about 1,400% and driving some of the biggest losses seen in crypto fraud to date. According to analysis by Chainalysis, scammers used AI tools, voice cloning and fake customer-support schemes to scale up attacks, pushing total scam losses on chain into the low-double-digit billions.

Impersonation Scams Jump Dramatically

Reports have disclosed that the rise was not just in the number of cases but in how much each case cost victims. The average amount taken in impersonation schemes rose by over 600% compared with the prior year, a jump that turned many small cons into large heists. Chainalysis highlights the role of automated tooling and commercially available phishing services that let scammers run scams like factories.

Criminals Used AI And Deepfakes

Fraudsters leaned heavily on AI techniques in 2025. Based on reports, AI-generated voice and face clones, paired with very believable messages, helped criminals impersonate exchange staff, celebrities or close contacts. These methods increased both reach and success rates. Industry writeups and analysts show that AI-enabled scams were several times more profitable than older approaches.

A High-Profile Example Shows The Risk

One public example involved scammers posing as a major exchange and clearing nearly $16 million from victims in a single operation. That case became a headline because it showed how quickly an impersonation scam can turn into a mass theft when it uses polished fake identities and coordinated social engineering. Financial news outlets and industry trackers used that case to illustrate the shift in tactics.

Operations Became Industrialized

Based on Chainalysis data, scam groups now resemble small businesses. They outsource parts of the fraud chain — writing scripts, buying deepfake clips, and hiring money movers. This setup made fraud more efficient and harder to disrupt. One analysis found AI-assisted schemes were about 4.5 times more profitable than traditional scams, a gap that attackers exploited to level up operations quickly.

Estimates of total crypto scam losses for 2025 vary by outlet, but multiple sources put the number well into the billions. Some trackers reported $14 billion in funds stolen on chain, while Chainalysis noted the figure could be as high as $17 billion once more data is tallied. The difference reflects how quickly new incidents were discovered and how some thefts moved off public rails.

Featured image from Unsplash, chart from TradingView

On-chain data shows the Bitcoin Sell-Side Risk Ratio has plummeted recently. Here’s what this could suggest for the cryptocurrency.

Bitcoin Sell-Side Risk Ratio Has Fallen To Multi-Year Lows

In a new post on X, Glassnode analyst Chris Beamish has talked about the latest trend in the Bitcoin Sell-Side Risk Ratio, an on-chain indicator that keeps track of the ratio between the sum of all profits and losses realized on the network and the cryptocurrency’s Realized Cap.

The Realized Cap here refers to a capitalization model that calculates BTC’s total value by assuming that the value of each coin in circulation is equal to the price at which it was last transacted on the blockchain.

The last transfer price of any token is likely to represent its cost basis, so the Realized Cap measures the sum of the cost bases of the total BTC supply. In other words, it represents the total amount of capital that the investors have put into the cryptocurrency.

As such, the Sell-Side Risk Ratio tells us about how the amount of profit and loss that Bitcoin investors are realizing compares against the total capital stored in the asset.

Now, here is the chart for the indicator shared by Beamish that shows how its value has changed over the last few years:

As displayed in the above graph, the Bitcoin Sell-Side Risk Ratio shot up to a notable value with the price crash in November. This suggests that investors took a large amount of profit and loss alongside the volatility.

Since this high, the indicator’s value has seen a steep drop and has returned to the lowest level since October 2023. The analyst has noted that this points to “subdued conviction behind distribution at current price levels.”

Typically, market volatility tends to be low when these conditions form, so it only remains to be seen how the price of the cryptocurrency will develop in the near future.

In some other news, demand from the Bitcoin retail investors has been missing recently, as CryptoQuant author IT Tech has pointed out in an X post. The indicator cited by IT Tech is the 30-day change in the Retail Investor Demand, measuring the percentage change in the volume associated with the small hands (transactions valued at less than $10,000).

As is visible in the chart, the 30-day change in the Bitcoin Retail Investor Demand has been declining inside the negative zone recently, implying that the activity of the retail entities has been going down. The indicator’s trend hasn’t changed even after the recent recovery surge.

BTC Price

At the time of writing, Bitcoin is trading around $94,300, up more than 3% over the last 24 hours.

As the Senate Banking Committee unveiled the updated draft of the crypto market structure bill, known as the CLARITY Act, another critical battle is unfolding surrounding the GENIUS Act, which focuses on stablecoin regulations. The banking lobby is pressing for significant changes, particularly regarding stablecoin rewards.

Are Big Banks Disrupting Stablecoin Competition?

Summer Mersinger, CEO of the Blockchain Association and a prominent advocate for the crypto industry in Congress negotiations, took to social media platform X (formerly Twitter) to highlight the current state of discussions following the bipartisan passage of the GENIUS Act. 

She claimed that the “Big Bank lobby” is pushing Congress to revisit settled legislation concerning stablecoin rewards, not due to emerging risks but rather to suppress competition that benefits consumers. 

Mersinger stated, “When Big Banks face competition, they don’t improve services. They lobby to handicap alternatives. And the consumer suffers.”

The firm’s CEO pointed out that the average American savings account currently yields only 0.39%, while checking accounts offer an even lower rate of 0.07%. In contrast, the Federal Funds rate hovers between 3.50% and 3.75%. 

She argued that this discrepancy is not merely a product of market forces but stems from a substantial barrier that the major banks have constructed, preventing customers from accessing better returns. 

Mersinger emphasized that the dominance of the six largest US banks, which control assets equivalent to 60% of the country’s Gross Domestic Product (GDP), only reinforces this trend. 

She further stressed that when new technologies arise that can provide consumers with superior returns, the banks’ immediate response is to invoke claims of “systemic risk” while lobbying against these advancements.

Ultimately, Mersinger and her colleagues are advocating for policies that prioritize consumer options. “We urge Congress to listen,” she implored, signaling the importance of the ongoing debate between the two sectors.

Expert Advocates For Fair Returns 

Market expert Omid Malekan also weighed in, criticizing the notion that stablecoin holders should not earn yields, arguing that the interest revenue generated from taxpayer-backed Treasury bills should be directed to average Americans rather than lining the pockets of bank executives and shareholders. 

Malekan called for a broader discussion on capping credit card interest rates and swipe fees, along with the implementation of a windfall profit tax on the net interest margins of banks. He asserted, “An industry this anti-competition and consumer choice should suffer the consequences.”

Support for Malekan’s view was reinforced by recent earnings reports from major banks. This morning, JPMorgan Chase announced $25 billion in net interest income, illustrating the profits generated by not providing higher returns to savers. Malekan dismissed claims that stablecoins paying interest would harm lending as unfounded.

Featured image from DALL-E, chart from TradingView.com

While a senator presses the Securities and Exchange Commission (SEC) against Bitcoin (BTC) and other cryptocurrencies in 401(k) plans, Bitwise’s CEO has defended the Trump administration’s push to allow digital assets’ inclusion in retirement funds.

Hougan Slams Bitcoin Restrictions In 401(k)s

On Monday, Bitwise CIO Matt Hougan discussed whether 2026 will be the year investors can own Bitcoin and other cryptocurrencies in 401(k) plans, as the inclusion of digital assets is becoming more common in individual retirement accounts (IRAs).

In an interview, the executive argued that providers are “slow to move,” but noted that the Trump administration’s pro-crypto shift, which removed “what was effectively a ban on Bitcoin from 401(k)s,” has opened the doors.

Hougan pointed out that large firms like Vanguard had strong restrictions but have recently relaxed their stance on Bitcoin investments. He argued that these bans are “ridiculous,” calling BTC “just another asset” that is no more volatile than stocks, such as those of Nvidia.

Does it go up and down? Absolutely. Is there risk in it? Absolutely. But it’s actually less volatile over the last year than Nvidia stock. And you don’t see any rules about banning 401k providers from offering Nvidia stock. That’s not that would seem ridiculous.

Recent K33 Research data showed that Bitcoin recorded the least volatile year in the asset’s history in 2025. Notably, BTC registered its lowest volatility level last year, with just 2.24%.

“So, I don’t know if the 401(k) providers will get all the way to the point of actually putting it in this year. These are very slow moving institutions, but we’re moving in that direction and eventually it’ll be normalized like other assets, which is how it should be treated,” he concluded.

Senator Warren Issues New Warning

Bitwise CEO’s remarks came as Democratic Senator Elizabeth Warren reached out directly to SEC chairman Paul Atkins to question how the Commission intends to protect investors from potential financial risks now that crypto investments are allowed in retirement plans.

As reported by Bitcoinist, the Department of Labor (DOL) rescinded in May a 2022 guidance that discouraged fiduciaries from including cryptocurrency investments in 401(k) retirement plans.

Months later, US President Donald Trump signed an Executive Order (EO) that aimed to allow more private equity, real estate, cryptocurrency, and other alternative assets in 401(k) retirement accounts.

The EO, signed on August 7, 2025, directed the DOL and the SEC to reduce regulatory barriers that prohibited investments in alternative assets in their defined contribution retirement plans.

In a new letter, the anti-crypto senator shared her concerns, cautioning that allowing Bitcoin and other crypto assets into these accounts could enable significant risks. She listed the “volatility associated with cryptocurrencies, the lack of market transparency, and potential conflicts of interest” as reasons to be cautious about introducing these assets into retirement plans.

She also emphasized that 401(k) plans are a vital source of retirement security for most Americans. Therefore, they should not be treated as a “playground for financial risk” that could put investors in vulnerable positions.

Despite Warren’s warnings, multiple US lawmakers have supported the Trump Administration’s efforts. In September, nine House members asked Atkins to provide “swift assistance” in implementing the president’s executive order and work with the DOL to protect workers.

Later, House of Representatives member Troy Downing proposed a bill to codify Trump’s directive, giving “the force and effect of law” and making it easier for investors to access Bitcoin and other alternative assets in their 401(k) retirement plans.

As the Senate Banking Committee prepares for the markup of the anticipated crypto market structure bill, known as the CLARITY Act, an updated draft has been released following extensive negotiations. 

This new version aims to provide a clearer regulatory framework for digital assets, defining oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

Major Takeaways From The Crypto Bill’s Draft

The latest draft released on Monday night, includes critical provisions recognized as gains for the industry. Notably, Paul Barron, a market expert, pointed out that the bill now defines “Custodial and Ancillary Staking Services” as a recognized activity, emphasizing that such services are considered “administrative or ministerial.” 

As a result, registered intermediaries will be allowed to facilitate staking for customers while ensuring that individual assets are segregated from the platform’s own funds. However, assets can be pooled with others for efficiency, such as through an omnibus account.

The bill also reinforces the existing status quo concerning anti-money laundering (AML) and know-your-customer (KYC) regulations. Exchanges and brokers will still be required to comply with the Bank Secrecy Act, perform KYC checks, and monitor for any illicit financial activities.

Key wins for consumers include an explicit right to self-custody. Section 105(c) of the bill grants US individuals the right to maintain a hardware or software wallet for their own lawful custody of digital assets. 

Additionally, this section protects the ability to engage in direct peer-to-peer (P2P) transactions using self-custody wallets without the need for financial intermediaries.

Furthermore, the legislation aims to safeguard wallet developers. Section 109 ensures that non-controlling blockchain developers or providers of hardware or software facilitating customer custody will not be classified as money transmitters. 

This provision of the crypto market structure bill protects developers of wallets, such as those from Ledger, Tangem, and MetaMask, from being regulated as financial institutions solely based on their coding efforts.

Critical Insights On DeFi Provisions

Another significant aspect of the bill is its provisions regarding decentralized finance. The Act establishes exclusions that help protect DeFi protocols and developers from being classified as centralized exchanges (CEXs) or brokers. 

Specifically, Section 309 states that individuals will not be subject to the Securities Exchange Act solely for activities such as developing DeFi trading protocols, publishing user interfaces for blockchain systems, or operating nodes.

For consumers using DeFi products and protocols, the Act creates a legal “safe harbor,” allowing continued use of decentralized finance without the imposition of forced intermediaries. However, it is important to note that this does not provide immunity for any illicit financial activities.

Pro-crypto Senator Cynthia Lummis, who led the Republican Party’s negotiations to achieve the best possible results for digital asset growth in the country, sent the following message to her Democratic colleagues on social media: 

After months of hard work, we have bipartisan text ready for Thursday’s markup. I urge my Democrat colleagues: don’t retreat from our progress. The Digital Asset Market Clarity Act will provide the clarity needed to keep innovation in the U.S. & protect consumers. Let’s do this!

As for the crypto bill’s likelihood of passing, Barron suggests a medium-high probability, estimating a 60-70% chance it could become law in early 2026. 

However, the expert asserted that the outcome may hinge on either removing or softening the “Anti-CBDC” provisions or making concessions to banks regarding stablecoin reserves to meet the Senate threshold.

Featured image from DALL-E, chart from TradingView.com 

On-chain data shows tokens aged between 3 and 5 years old have just moved on the Bitcoin network with two large transactions.

3 To 5 Years Old Bitcoin Supply Has Seen Movement Recently

As pointed out by CryptoQuant community analyst Maartunn in a new post on X, two transactions involving old tokens have just occurred on the Bitcoin blockchain. The on-chain metric of interest here is the “Spent Output Age Bands,” which tracks how many tokens that the various coin age groups or “age bands” are moving on the network.

In the context of the current topic, the age band of interest is the one containing coins that have been dormant for between three and five years. Here is the chart for the Bitcoin Spent Output Age Bands shared by Maartunn that shows the data specifically for this cohort:

As is visible in the above graph, the Bitcoin Spent Output Age Bands have captured two large transactions from the 3 to 5 years age band during the past couple of days. The first of these involved 539 BTC, while the second moved 1,566 BTC.

The 3 to 5 years age band corresponds to coins that were purchased between January 2021 and January 2023, essentially covering the cycle spanning over the 2021 bull market and 2022 bear market. Thus, the tokens that have just been moved were held by investors who had been sitting silent since buying in the previous cycle.

“Dormant supply waking up is often a signal—either smart money rotating or early holders exiting,” explained the analyst. It now remains to be seen whether these transactions were a temporary deviation or if long-term holder whales will make more such moves in the near future.

In some other news, CryptoQuant has shared its 2025 review of digital asset exchange activity. One interesting finding is that stablecoins are heavily concentrated on Binance, with the exchange holding a combined $47.6 billion in USDT and USDC reserves. This is equivalent to 72% of the stablecoin holdings across the ten largest exchanges.

Binance also dominated 2025 in spot trading activity, recording close to $7 trillion in volume.

Binance’s dominance of trading volume wasn’t quite as stark as that of its stablecoin reserves, however, as it made up for 41% of the total spot volume among the top 10 platforms. The exchange’s share of the futures trading volume was similar, coming out at 42%.

Overall spot and futures trading volume in the cryptocurrency sector grew during 2025 compared to the end of 2024, but the yearly growth rate declined.

BTC Price

Bitcoin has been moving sideways recently as its price is still trading around the $92,200 level.

Bitcoin has spent several weeks struggling around a pivotal price range, frustrating traders and reinforcing bearish narratives across the market. After failing to reclaim key resistance levels, a growing number of analysts are calling for a broader bear market to unfold. Price action has been choppy, momentum has faded, and volatility has compressed—conditions that often amplify pessimism. Yet beneath the surface, some analysts argue that Bitcoin is no longer behaving as it did in previous cycles.

According to this view, the market structure itself is changing. Long-term holders appear less reactive, sell-side pressure has moderated, and on-chain activity suggests a slower, more deliberate market. Rather than a reflexive risk asset, Bitcoin is increasingly traded and held with a longer time horizon. This shift becomes especially relevant as the policy backdrop evolves in the United States.

The US Senate Banking Committee is scheduled to mark up the crypto market structure bill known as the CLARITY Act on January 15, 2026. This event should not be interpreted as a short-term price catalyst. Instead, it represents a potential inflection point in how Bitcoin is positioned within the US regulatory framework.

While prices remain relatively stable, on-chain data already hints at a market adapting to a more institutional, regulated environment. The implication is clear: Bitcoin may be entering a structurally different phase, even as sentiment remains divided.

On-Chain Signals Point to Patience, Not De-Risking

A report by CryptoQuant, authored by XWIN Research Japan, highlights that Exchange Netflow remains a critical signal in the current environment. Historically, periods of regulatory uncertainty tend to push Bitcoin into exchanges as investors prepare to sell or reduce exposure.

Ahead of the upcoming CLARITY bill discussions, however, this behavior has not materialized. Exchange inflows have stayed relatively muted, suggesting that market participants are not positioning defensively or treating the legislative process as an immediate threat.

SOPR (Spent Output Profit Ratio) reinforces this interpretation. The metric, which measures whether moved coins are sold at a profit or a loss, is hovering around or slightly below the 1.0 threshold. This indicates subdued profit-taking activity. More importantly, it implies that on-chain spending itself remains low. In simple terms, Bitcoin is not being moved aggressively, either to realize gains or to exit positions.

Together, Exchange Netflow and SOPR point to a market posture that is patient rather than defensive. Investors appear willing to hold through uncertainty instead of rotating capital or rushing to de-risk. The time horizon is clearly lengthening.

From this perspective, the CLARITY Act represents more than a policy debate. It marks a potential step toward integrating Bitcoin into the U.S. financial framework as a regulated digital commodity. On-chain data already reflects this shift: before any major price move, Bitcoin is becoming increasingly “sticky,” signaling a transition away from speculative trading and toward institutional-grade holding behavior.

Bitcoin Price Consolidation Continues

Bitcoin price action remains constrained within a well-defined consolidation range, following the sharp correction that began in November. After rejecting from the $120K–$125K region, BTC experienced an impulsive sell-off that found a local bottom near the mid-$80K zone, where demand visibly stepped in. Since then, price has been carving a higher low structure, suggesting that downside momentum is gradually weakening.

On the daily chart, Bitcoin is now attempting to stabilize above the $92K area, which aligns closely with a former support-turned-resistance level. This zone has acted as a pivot throughout the current range and remains critical for short-term direction. A sustained hold above it would strengthen the case for a broader recovery toward the $98K–$100K region, where the declining short-term moving averages converge.

However, the broader trend remains technically fragile. Price is still trading below the 100-day and 200-day moving averages, both of which are sloping downward. This indicates that the medium-term structure has not yet shifted back to bullish. Volume also remains relatively muted, reinforcing the idea that this move is corrective rather than impulsive.

As long as Bitcoin remains trapped between roughly $88K and $95K, the market is likely to remain range-bound. A decisive break above resistance or a loss of current support will be required to resolve this consolidation phase and define the next directional move.

Featured image from ChatGPT, chart from TradingView.com 

A crypto analyst has just identified a distinct Cup and Handle formation on the Bitcoin price chart that closely mirrors the pattern Silver displayed just before its historic 2017 rally. At the time, the analyst said Silver’s breakout from this key structure had triggered a violent reprice as buyers flooded the market. With BTC now tracing a similar pattern, he suggests the leading cryptocurrency could soon break out of its Cup and Handle structure and experience an explosive move.

Bitcoin Mirrors Pre-Rally Silver Pattern From 2017

Since the 2021 bull cycle, Bitcoin has been forming a Cup and Handle pattern that has extended into 2025 and now looks ready to explode in 2026. Crypto analyst Merlijn the Trader has shared a video chart analysis comparing Bitcoin’s current pattern to the long-term Cup and Handle structure Silver formed before its legendary rally in 2017. 

The analyst noted that Silver spent nearly a decade building a broad base, which caused many investors to lose interest, before the price finally cleared the $54 level and surged higher. Merlijn the Trader recalled a 2017 conversation in which someone predicted that Silver would jump to $80, while he argued that a break above $54 would open the door to a move toward a lower target range of $70-$75.  

At the time, Silver’s chart formed a rounded bottom between 2011 and 2023, with a flat resistance level near its previous high. After breaking through that level, a handle formed, which quickly led to a violent repricing that pushed Silver beyond the range it had been stuck in for years. 

Merlijn the Trader said Bitcoin is showing the same long base and slow climb that Silver had before its big move in 2017. On the chart, the BTC price bottomed during the 2022 bear market and has been steadily rising toward its previous highs, forming a rounded “cup” that matches the structure seen on the Silver. The chart also highlights a resistance zone around $70,000, where BTC was repeatedly rejected before finally breaking through. Once it cleared that level, the cryptocurrency formed a rising handle that resembles the final consolidation Silver made before its explosive move higher. 

According to Merlijn the Trader, Bitcoin’s pattern reflects sellers’ exhaustion after a long period of sideways trading. He explained that once the last sellers in the market are gone, BTC is free to reprice just as dramatically as Silver did in 2017. 

Possible Target For BTC Repricing

In classical technical analysis, traders often use the height of the cup in a Cup and Handle pattern to predict the breakout trajectory of a coin. For BTC, this suggests a potential repricing target of $120,000-$140,000 if the handle resolves like Silver’s did in 2017. At the time of writing, the cryptocurrency is trading near $92,000, so reaching that range would require a gain of more than 30%. 

Bitcoin is pressing above the $92,000 level after an eventful start to 2026 marked by intensified geopolitical and political developments. In early January, the United States launched a military operation in Venezuela, resulting in the capture of President Nicolás Maduro and significant upheaval in regional politics and energy markets. This action formed part of a broader US campaign against illicit networks and pressure on Caracas, with implications for global oil flows and uncertainty in macroeconomic sentiment across markets.

Simultaneously, tensions between Federal Reserve Chair Jerome Powell and US President Donald Trump over monetary policy and institutional independence have added another layer of volatility. In a rare and pointed statement, Powell framed the situation as a direct consequence of central bank independence, saying: “The threat of criminal charges is a consequence of the Fed setting rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”

Despite these headline risks, Bitcoin’s price action has entered a period of calm, with realized volatility compressing to historically low levels. Such low-volatility regimes typically reflect a temporary balance between supply and demand.

In past cycles, extended calm like this has often preceded periods of significant volatility and range expansion, as accumulated imbalances resolve with sharp directional moves. This sets the stage for a potentially decisive breakout as participants await clearer catalysts while price hovers near the critical $92K threshold.

Volatility Compression Signals A Market Near Inflection

A recent analysis by Axel Adler highlights a critical shift in Bitcoin’s market structure: realized volatility has compressed to 23.6%, placing it near the lower end of this cycle’s historical range. Rather than signaling direction, this drop in volatility reflects a market that has temporarily lost momentum, with price swings narrowing and impulse strength fading. In past cycles, similar conditions have rarely persisted for long.

From a structural standpoint, this environment suggests that Bitcoin is in a classic compression phase. As volatility contracts, underlying imbalances between supply and demand tend to build quietly beneath the surface. When these imbalances reach a tipping point, price typically transitions from stability into expansion—often abruptly.

This view is reinforced by Bitcoin’s 30-day high–low range. The gap between recent rolling highs and lows continues to tighten, confirming that price is coiling within an increasingly narrow band. Both intraday and multi-day fluctuations have diminished, and neither buyers nor sellers have been able to assert sustained control.

Historically, breakouts from such compressed ranges tend to attract algorithmic and trend-following capital, amplifying follow-through once price escapes the range. While this setup does not guarantee an upside or downside resolution, it does suggest that the probability of a decisive move is rising. With volatility and range metrics aligned, Bitcoin appears to be approaching a moment where consolidation gives way to renewed directional conviction.

Bitcoin Price Reclaims $92K as Structure Slowly Improves

Bitcoin is attempting to reclaim the $92,000 level after several weeks of consolidation following the sharp November drawdown. On the daily chart, price has formed a clear base in the $86K–$88K region, where aggressive selling pressure was previously exhausted. Since then, BTC has printed a sequence of higher lows, signaling a gradual shift from distribution into short-term accumulation.

The recent push above the descending short-term moving average reflects improving momentum, although the broader structure remains mixed. Price is still trading below the declining mid-term trendline and well under the longer-term moving averages, which continue to act as overhead resistance near the $98K–$105K zone. This suggests that, while downside pressure has eased, Bitcoin has not yet re-entered a strong bullish trend.

Volume remains relatively muted during the rebound, indicating that the move is driven more by reduced selling than by aggressive new demand. This aligns with a market transitioning into stabilization rather than immediate expansion. The $92K area now represents a critical pivot: holding above it would confirm acceptance at higher levels and open the door for a broader range rotation toward $96K–$100K.

Failure to sustain this breakout, however, would likely keep BTC trapped in a consolidation range, with downside risk returning toward the $88K support. For now, price action suggests cautious recovery rather than trend reversal.

Featured image from ChatGPT, chart from TradingView.com 

US Senators Cynthia Lummis and Ron Wyden introduced a standalone measure that would protect blockchain developers and other non-custodial infrastructure providers from being treated as money transmitters solely for writing code or maintaining networks. The bill is being filed as the Blockchain Regulatory Certainty Act, a name that also appears in earlier House paperwork filed last year.

Crypto: Bill Aims To Protect Non-Custodial Developers

The draft would create a safe harbor for developers who do not control user funds, making liability turn on actual custody or control of assets rather than on the act of creating software. That change would mean node operators, protocol maintainers, and many open-source coders could avoid money-transmitter rules so long as they do not hold or direct users’ tokens.

Writing code is not the same as controlling money and developers who build blockchain infrastructure without touching user funds shouldn’t be treated like banks. @RonWyden and I are ensuring that won’t happen. pic.twitter.com/9zIgh07e0b

— Senator Cynthia Lummis (@SenLummis) January 12, 2026

Industry Pressure And A History Of Concern

Reports have disclosed months of lobbying from exchanges, developer groups, and advocacy coalitions that urged lawmakers to clarify this point. Those groups warned that without clear language, developers could face licensing and enforcement risks that would chill US-based development. The House version of the measure first appeared in May last year and set out similar safe-harbor text.

Senate Markup Delayed As Negotiations Continue

Lawmakers have paused a larger Senate market-structure push while they work through a range of open issues, including stablecoin policy and yield rules. With that broader package pushed later into the month, sponsors moved the developer protections into a standalone bill to give that issue its own spotlight. Reports suggests the pause means Congress may act on the developer language sooner than the full market bill.

What Developers And Advocates Are Saying

Some protocol teams and industry lawyers welcomed the step as a much-needed clarification, saying it would reduce legal uncertainty for projects that do not custody funds.

Others urged care, noting that clear definitions will be crucial to prevent loopholes and to make sure bad actors cannot hide behind the safe harbor. Coverage indicates sponsors emphasized the bill’s goal is narrow: protect those who build and maintain, not those who handle other people’s assets.

The proposal for a separate law is being introduced while there are still many uncertainties surrounding how cryptocurrencies will be regulated in the US. In the latter part of 2025 and into 2026, the crypto sector has demonstrated that it has a great deal of clout within political circles in Washington D.C.

There has been a significant increase in lobbying by large crypto-related businesses as legislators review various options for regulating this industry. Several reports have linked the current political environment to the legislative actions taken to regulate crypto in Congress, as well as how interest in legislative action has increased due to Trump’s administration.

Featured image from Unsplash, chart from TradingView

Bitcoin, Ethereum, Solana, and XRP are at the center of a clear capital rotation unfolding across the crypto market, as investors scale back exposure to the largest assets while reallocating capital into selective alternatives. The latest CoinShares Digital Asset Fund Flows Weekly Report (Volume 268) captures this shift through hard fund-flow data, highlighting deliberate institutional repositioning.

Bitcoin And Ethereum See Heavy Withdrawals As Capital Rotates

Digital asset investment products recorded $454 million in net outflows over the latest reporting week, a move linked to weakening expectations for near-term US Federal Reserve rate cuts. As macro conditions tightened, capital moved defensively, pressuring risk assets across the board.

Bitcoin accounted for the overwhelming share of redemptions. BTC investment products saw $405 million in outflows, reinforcing the idea that investors are reducing exposure where liquidity is deepest and allocations are largest. Ethereum followed with $116 million in outflows, confirming that selling pressure remains concentrated in core holdings rather than across the entire asset class.

The regional breakdown sharpens this picture. The United States recorded $569 million in outflows, making it the dominant source of capital withdrawal during the week. In contrast, other regions remained selectively constructive. Germany posted $58.9 million in inflows, while Canada added $24.5 million and Switzerland recorded $21 million, pointing to regional divergence rather than a synchronized global retreat.

Flows by product and provider further reinforce this trend. Multi-asset investment products saw $21 million in outflows, indicating reduced appetite for broad crypto exposure. Binance-linked products lost $3.7 million, while Aave-related products recorded $1.7 million in outflows, showing that pressure extended beyond just Bitcoin and Ethereum-linked vehicles.

Solana And XRP Capture Inflows Amid Market Repositioning

While headline flows were negative, capital did not exit crypto entirely. Instead, it rotated. XRP led alternative asset inflows with $45.8 million, standing out as the strongest performer during the week. Solana followed closely with $32.8 million in inflows, continuing a pattern of steady institutional accumulation.

These inflows are notable because they occurred during a week of broad net outflows, suggesting intentional reallocation rather than indiscriminate risk-off behavior. Investors appeared willing to maintain crypto exposure, but only where they perceived stronger relative upside or differentiated fundamentals. Solana’s inflows reflect confidence in its ecosystem growth and transaction throughput, while XRP’s gains point to improving sentiment around its positioning and use-case clarity.

Smaller assets also saw selective interest. Sui recorded $7.6 million in inflows, reinforcing the theme that capital is being redeployed with precision rather than withdrawn wholesale.

The numbers draw a clear conclusion. Bitcoin and Ethereum are increasingly treated as macro-sensitive anchors within crypto portfolios, absorbing most of the downside when conditions tighten. Solana and XRP, by contrast, are emerging as tactical allocation targets. If this rotation persists, market leadership could shift away from incumbents toward assets perceived to offer better capital efficiency, reshaping short-term market structure without undermining crypto’s broader institutional footprint.