bitcoinist.com

Bitwise CIO Matt Hougan says crypto’s near-term trajectory is being pulled by two very different macro forces: a breakout in gold that signals a deeper institutional trust problem, and a suddenly uncertain path for the Clarity Act that could determine whether the current pro-crypto regulatory posture becomes durable US law.

In a Jan. 26 memo titled “Gold Rising, Clarity in Suspense,” Hougan framed the moment as a split-screen. On one side is a traditional store of value repricing violently higher. On the other is a legislative process that—if it stalls—could shift crypto from expectation-driven markets to an adoption-driven proving ground.

Gold Above $5,000, And Crypto?

Hougan called gold’s move “staggering.” After rising 65% in 2025, gold is up another 16% in 2026 and is now trading above $5,000, he wrote, adding that it’s “pretty wild” to consider that gold “has gained half of its value (in dollar terms) in the last 20 months.”

For Hougan, the price action is less about commodity cycles and more about confidence. “I think the spiking price of gold says something profound about the world,” he wrote. “First, it says that years of money printing, debt, and debasement is catching up with fiat currencies. And second, it shows that people no longer want to keep all of their wealth in a format that relies on the good graces of others.”

That second point is the hinge to crypto. Hougan argued that the last few years have accelerated a global shift in how institutions think about sovereign risk and custody, tracing the inflection to 2022 when the US seized Russian treasury assets after Russia’s invasion of Ukraine. Central banks, he said, “doubled their annual purchases of gold” after that event, effectively deciding that some reserves need to sit outside any single power’s reach.

He pointed to recent examples as evidence the trend is widening: German economists publicly urging the government to withdraw gold stored at the New York Federal Reserve and bring it back to Germany, and a warning from a Norwegian government panel that its sovereign wealth fund may be “subject to increased taxation, regulatory intervention and even confiscation” in today’s geopolitical climate. “There is a global breakdown in trust among institutions, and it is accelerating,” Hougan wrote.

Crypto’s pitch, in this framing, is straightforward: systems designed to minimize reliance on centralized intermediaries. “To own bitcoin or other crypto assets, you don’t have to trust anyone,” he wrote, adding that “no single person can change the rules for how platforms like Ethereum and Solana operate.” The industry’s usual vocabulary—self-custody, censorship resistance, trustless—can sound abstract, Hougan acknowledged, but he argued it starts to look more concrete in a world that is increasingly skeptical about who ultimately controls assets and rules.

The Clarity Act’s Wobble

Hougan’s second focus was the Clarity Act, which he described as critical because it would “cement the current pro-crypto regulatory environment into law.” Without it, he argued, a future administration could reverse course—he illustrated the stakes by asking readers to “picture Senator Elizabeth Warren as the next chair of the SEC.” Earlier this month, he wrote, prediction markets were confident: Polymarket had the odds of passage around 80% in early January. After recent setbacks, including Coinbase CEO Brian Armstrong calling the current version “unworkable”, Hougan said those odds have fallen closer to 50%.

If Clarity fails, Hougan expects a multi-year reset in how markets price the sector. “If the bill fails, I believe crypto will enter a ‘show me’ period,” he wrote. “That means it will have three years to make crypto indispensable to the everyday lives of regular Americans and the traditional financial industry. If it succeeds, regulations will take care of themselves. If it fails, there could be real challenges.”

He compared the dynamic to technologies that forced legal accommodation by becoming unavoidable, citing Uber and Airbnb operating “on the edge of regulations” until usage made the old framework untenable. In crypto’s case, the proof would be unmistakable penetration into mainstream rails—Hougan’s examples were Americans “using stablecoins and trading tokenized stocks.” If that happens, he argued, supportive legislation becomes politically resilient regardless of who holds power. If it doesn’t, a shift in Washington could become “a huge setback.”

Hougan tied the legislative outcome directly to market structure. If a version of Clarity passes that the industry can support, he expects investors to treat stablecoin and tokenization growth as effectively guaranteed—and to price that future in quickly. If Clarity fails, the market may demand real-world adoption before rewarding valuations, because otherwise crypto would be “built on a regulatory foundation of sand.”

At press time, the total crypto market cap stood at $2.94 trillion.

Stablecoins could pose a significant challenge to the US banking system over the next several years, with as much as $500 billion in deposits potentially moving out of traditional banks by the end of 2028, according to a new analysis from Standard Chartered.

Stablecoins Could Pressure Bank Earnings And Deposits

The forecast, reported by Reuters and published Tuesday, suggests that regional US banks are likely to be the most vulnerable to deposit losses driven by the growing adoption of dollar‑pegged digital tokens. 

Geoff Kendrick, Standard Chartered’s global head of digital assets research, said smaller and mid‑sized lenders face greater exposure as stablecoins increasingly take on roles traditionally handled by banks, including payments and other core financial services.

Standard Chartered’s analysis focused on banks’ net interest margin income — the spread between what lenders earn from loans and what they pay out to depositors. 

As deposits leave the banking system, that income stream could come under pressure, particularly for institutions that rely heavily on consumer and commercial deposits as a funding source. 

Kendrick warned that US banks face mounting risks as payment networks and fundamental banking activities gradually migrate toward stablecoin‑based systems.

Banks And Crypto Firms Clash

While the country’s stablecoin bill, the GENIUS Act, presently prohibits issuers from paying interest on the tokens, banks are concerned that it would allow third parties, including cryptocurrency exchanges, to offer returns on stablecoin holdings. 

Over the past few months, banking industry groups have argued that this “stablecoin loophole” could intensify competition for deposits, potentially triggering large-scale outflows from banks and raising broader financial stability risks. They have called for changes to the bill regarding this matter.

Crypto companies have pushed back against those claims, arguing that prohibiting interest payments tied to stablecoins would limit competition and innovation in the financial sector, thereby delaying the anticipated markup of another key piece of legislation for the crypto market. 

Earlier this month, a Senate Banking Committee hearing to debate and vote on the anticipated crypto market structure legislation was postponed, in part because lawmakers could not agree on how to address banks’ concerns over deposit flight.

Kendrick noted that the ultimate scale of deposit losses will depend in part on how stablecoin issuers manage their reserves. If issuers hold a substantial portion of their backing assets within the US banking system, the impact on deposits could be less severe. 

The two biggest stablecoin issuers in the crypto market, Tether (USDT) and Circle (USDC), hold most of their reserves in US Treasuries rather than bank deposits, meaning little of the funds are recycled back into the banking system.

Featured image from OpenArt, chart from TradingView.com 

Bitcoin and Ethereum spot ETFs have continued to observe weak demand as their monthly average netflows have remained in the red.

Bitcoin & Ethereum Spot ETFs Have Been Observing Net Outflows

As pointed out by on-chain analytics firm Glassnode in a new post on X, the average netflow for both Bitcoin and Ethereum spot exchange-traded funds (ETFs) has remained negative recently. Spot ETFs are investment vehicles that allow investors to gain indirect exposure to an underlying asset. In the case of cryptocurrencies, this means that traders never have to interact with blockchain infrastructure themselves. Instead, the fund buys and custodies tokens on its behalf.

ETFs and similar investment vehicles for digital assets are available in various parts of the world, but currently, the most dominant funds are those based in the United States. The US Securities and Exchange Commission (SEC) first approved spot ETFs for Bitcoin in January 2024 and for Ethereum in July 2024. Since their establishment, ETFs have grown into a cornerstone of the market, tapping into demand from traditional institutional entities.

First, here is a chart that shows the trend in the 30-day simple moving average (SMA) of the Bitcoin spot ETF netflow over the last couple of years:

As shown in the above graph, the US Bitcoin spot ETFs saw their 30-day SMA netflow dip into negative territory back in November, suggesting net capital outflows began.

Since then, the indicator has mostly remained inside this territory, although the capital bleeding has slowed down recently. Earlier this month, the 30-day SMA netflow even flipped into the positive zone, but the net inflows lasted only briefly, with the indicator quickly returning to the red region.

A similar pattern has also been witnessed with Ethereum spot ETFs, as the chart below shows.

From the graph, it’s visible that the US Ethereum spot ETFs have also seen their 30-day SMA netflow return to the underwater zone after a brief wave of net capital inflows.

This means that interest in the digital asset market as a whole continues to be down among ETF users. “There is no sign of renewed demand,” noted the analytics firm. It now remains to be seen how long the wave of outflows will go on.

BTC Price

At the time of writing, Bitcoin is floating around $88,000, down 3.5% in the last seven days.

Bitcoin is struggling to regain momentum below the $88,000 level as fear and uncertainty continue to weigh on market sentiment. After a volatile selloff, price action remains compressed near key support, with buyers hesitant to step in aggressively and sellers pressing rallies at lower levels. While attention has largely focused on derivatives pressure and macro risk, on-chain signals are now adding another layer of concern to the current setup.

Top analyst Darkfost points to a critical indicator of Bitcoin’s underlying network health: the hashrate, which measures the total computing power securing the network and reflects overall mining activity. Under normal conditions, a sharp decline in hashrate suggests that miners are voluntarily shutting down machines, often due to unprofitability or stress—typically associated with miner capitulation phases near market lows.

That is exactly the type of move unfolding now. Over just two days, Bitcoin’s hashrate has dropped dramatically, falling from 1.133 ZH/s to 690 EH/s. Such a rapid contraction is highly unusual and immediately raises questions about its cause. Importantly, Darkfost notes that this episode does not fit the classic miner capitulation narrative driven by collapsing prices or shrinking margins.

Instead, the decline appears to be linked to external disruptions rather than economic pressure within the mining sector itself. This distinction matters. While price remains under pressure below $88K, the hashrate shock introduces a new variable—one that could influence short-term dynamics, miner behavior, and market psychology as conditions evolve.

Hashrate Shock Linked To US Ice Storm, Not Miner Capitulation

According to Darkfost, the sharp drop in Bitcoin’s hashrate appears to be driven by external disruptions, not by economic stress within the mining sector. A large number of ASIC machines have been shut down during the past few days, coinciding with a severe ice storm hitting the United States, a country that accounts for roughly one-third of global Bitcoin hashrate. The timing strongly suggests a weather-related shock rather than voluntary miner capitulation.

The cold wave has been especially disruptive in Texas, a key hub for industrial-scale mining operations. Major players such as MARA and Foundry Digital are heavily exposed to the region’s power grid. Darkfost highlights that MARA’s hashrate has fallen by roughly a factor of four over the last three days compared to its monthly average, underscoring how abrupt and severe the disruption has been.

Extreme cold places stress on power infrastructure, forcing grid operators to curtail non-essential loads, while electricity prices spike as demand surges. For miners, this combination makes continued operation temporarily unviable, leading to widespread shutdowns.

As a consequence, block times are likely to lengthen, and mining difficulty is expected to adjust lower, with the next adjustment already estimated near -4.54%. If the storm persists, Darkfost warns that some miners could be forced to sell BTC to cover fixed operating costs, adding another short-term pressure point for the market.

Bitcoin Medium-Term Structure Remains Under Pressure

Bitcoin is trading around $87,850 on the 3-day chart, sitting at a critical inflection zone after a prolonged corrective phase. The broader structure shows that BTC peaked near the $125K area in late 2025 before entering a sustained downtrend, marked by sharp selloffs and increasingly weaker rebound attempts. While price has managed to stabilize above the mid-$80K region, momentum remains fragile and conviction on the buy side is limited.

From a trend perspective, the moving averages outline the current market regime clearly. Bitcoin is trading below the 50-period moving average (blue), which has rolled over and is now acting as dynamic resistance near the low-$90K area.

The 100-period moving average (green) is flattening and beginning to turn lower, signaling a loss of medium-term trend strength and confirming that prior upside momentum has broken. Meanwhile, the 200-period moving average (red) continues to slope upward well below price, near the low-$90K to high-$80K region, acting as the last major long-term support reference.

Price action over recent candles suggests compression rather than capitulation. Volatility has contracted, and volume has declined compared to the November selloff, indicating reduced urgency from sellers. For bulls, holding the $86K–$88K zone is essential to avoid a deeper breakdown.

A decisive move back above $90K–$92K would be required to shift structure and signal early recovery, while failure here keeps downside risk open toward the low-$80K range.

Featured image from ChatGPT, chart from TradingView.com 

Bitcoin is moving into mainstream banking in small, steady steps. What once seemed unlikely is becoming routine as traditional banks test ways to hold, trade, or lend against Bitcoin. Reports say a sizable slice of the biggest US banks are now planning real customer offerings.

60% Of Top Banks Preparing Bitcoin Products: River Study

A study conducted by Bitcoin financial services firm River shows about 60% of the top 25 US banks are at some stage of building Bitcoin services, from custody to trading and client-facing products. This shift is not just talk; it shows up in boardroom plans and pilot projects across several large lenders.

Banks Moving From Caution To Practical Steps

For years, many banks kept their distance. But change came fast after clearer rules and big exchange-traded funds put Bitcoin on more mainstream radars. Spot ETF approvals and rising demand from big investors nudged banks to revisit their stance and to test practical, compliant ways to serve customers interested in digital assets.

60% of the top US banks are into bitcoin. pic.twitter.com/AqceDDfjDP

— River (@River) January 26, 2026

Some major names are already on the record with pilot projects or new services. Reports mention that JPMorgan Chase is looking at crypto trading, Wells Fargo has rolled out credit and custody-linked offerings to institutional clients, and Citigroup is exploring custody and payments tied to tokenized assets. Those moves signal a shift from theory to products customers can use.

How This Changes The Picture For Clients

Customers could get simpler access to Bitcoin without needing separate crypto accounts. That means an investor might see Bitcoin as another line on a bank statement, with custody and reporting wrapped into services they already use. Some banks plan to partner with specialists to avoid taking on all the technical work themselves, keeping risk and compliance squarely in focus.

Regulation, Risk, And The Role Of Policy

Regulatory moves earlier in the year reopened options that were closed when tight capital rules made custody costly. Reports note that a change in guidance helped some banks resume or rethink custody services, and that the current political climate under US President Donald Trump has been described as more favorable to broader crypto adoption. These shifts are nudging banks to act where they had hesitated.

Expect more pilot announcements and a slow roll of services into client offerings. Not every bank will move at the same speed. Some will stay cautious, others will move sooner. The practical test will be whether banks can offer secure custody, clear accounting, and easy reporting without taking on outsized risk.

Featured image from Pexels, chart from TradingView

XRP’s price action has been quiet in the past few days, with the majority of recent trading sessions spent trading just below and above $1.9. 

Interestingly, one analyst noted that the altcoin’s price action has already done most of the heavy lifting needed for a trend reversal after weeks of controlled downside and repeated reactions around descending resistance. The remaining question, according to the analysis, is whether price confirms what the structure is already suggesting.

Reset By Liquidations And Whale Activity

Technical view of XRP’s price action shared by a crypto analyst known as CW on the social media platform X begins with a reset in market positioning. Most of the long positions that were accumulated during its earlier rally to $2.40 in the first week of January have been cleared, and this has removed excess leverage.

Interestingly, that liquidation phase has coincided with the XRP price tagging the lower boundary of a descending channel structure on the 4-hour candlestick timeframe chart. Over the past 24 hours, the token’s price bounced from the lower trendline in the mid-$1.80 region and has since rotated higher to now retesting the upper boundary of the converging structure, which is around $1.90.

This move was accompanied by an increase in net buying, and according to the analyst, all that remains is a breakout of the upper line. From a structural standpoint, this outlook is important, as it reduces forced selling and allows spot demand to play a larger role in determining direction. 

A decisive break above the upper trendline would invalidate the current downtrend and begin an uptrend. In practical terms, this scenario will only come to pass if the altcoin is able to confirm that buyers have regained control by securing multiple candlestick closes above $1.90.

Breakout, Retest, And The Case For Continuation

A separate technical perspective, illustrated in the chart below, frames XRP’s current structure within a much longer price history stretching back to 2024. This analysis also shows how XRP is well advanced in a broader bullish setup and has already completed the majority of the conditions needed for an upward rally continuation. 

XRP first achieved a major structural shift when it broke above the long-term resistance line drawn from its late 2024 peak, a move that ultimately carried the price to a new peak of $3.65 in 2025. Following that breakout, XRP transitioned into an extended accumulation phase that has now lasted for more than a year. The only thing missing now is the upside continuation. 

According to crypto analyst ChartNerd, the only missing element is a sustained upside follow-through. Based on that structure, XRP is estimated to be about 90% of the way through the work needed for a rally continuation.

The XRP Ledger, a decentralized public blockchain developed by Ripple, has surpassed $1 billion in total on-chain assets, according to recent reports. This growth is apparently being fueled by Ripple’s stablecoin RLUSD, and other asset classes which continue to attract significant interest on the blockchain network. 

XRP Ledger Achieves Monumental Milestone

The XRP Ledger crossed a significant financial milestone this week, with reports confirming that more than $1 billion in tokenized assets are now held directly on its blockchain. This surge highlights the growing confidence in Ripple’s infrastructure as a platform for tokenized finance and Real-World Asset (RWA) integration. It also cements XRPL’s role as a core bridge between traditional finance and blockchain technology. 

Data from analytics firm RWA.xyz shows that stablecoins and tokenized instruments are driving much of this ledger growth. In particular, the RLUSD stablecoin has emerged as the most active asset on the blockchain, attracting increasing investment flows and a growing base of holders. 

At the time of writing, the XRP Ledger hosts approximately $338,005,246 in RLUSD, held across 33,105 addresses. Notably, both investment volume and holder count are at their highest levels ever recorded among other tokenized assets on the network. Beyond RLUSD, other stablecoins, including Circle’s USDC, Braza USDB, BBRL, and EURØP, have also contributed significantly to the overall rise in the value of tokenized assets on the ledger. 

Institutional participation is further accelerating this growth as banks and financial firms explore tokenizing funds, treasury products, and credit instruments on the XRP Ledger. On-chain data shows that the second-largest contributor the $1 billion tokenized asset milestone came from the private credit sector. 

The largest single private credit allocation on the network totaled approximately $108,740,785, issued through the Vert Capital platform and held by a single address. After private credit, other asset classes that have also fueled XRPL’s growth include US treasury debt, commodities, private equity, real estate, etc. 

Reasons Why Ripple’s Ledger Is Standing Out

Behind the scenes, several factors are driving the XRP Ledger’s growth and helping it stand out among the competing blockchain networks. Paul Barron, the founder of the Paul Barron Network, has suggested that XRPL’s fast settlement times, high scalability, and low transaction costs make it an incredibly attractive option for institutional users. 

The ledger’s compliance-focused architecture is another major catalyst for adoption. This design enables financial firms to tokenize funds, treasuries, and stablecoins while remaining aligned with regulatory standards. In addition, security enhancements on the blockchain network, including the integration of quantum-resistant Dilithium cryptography, are strengthening institutional trust and reinforcing XRPL’s long-term resilience. 

Barron has described the Ledger as “the world’s financial infrastructure,” suggesting that its evolving role in tokenized assets and institutional finance positions the network as a foundational layer for the future of global payments. 

Senator Roger Marshall moved to add a swipe fee rule to a crypto market structure bill last week, a step that briefly put card fees back in the spotlight as lawmakers weigh how to rein in rising costs for small sellers.

The change would push banks and payment networks to allow more than one route for processing card payments, giving merchants a choice that could drive down swipe fees. Some analysts also say it could have implications for crypto payment solutions in the US.

Marshall Files Swipe Fee Amendment

According to reports, the amendment filed by the Republican lawmaker would require large banks to let at least two unaffiliated networks handle debit and credit transactions.

That is meant to let merchants pick the cheapest route. Swipe fees, also called interchange fees, are usually in the 1.5%-3.5% range on most purchases.

Small stores say those charges add up fast. Reports say some retailers supported the idea because it could lower their costs and help them keep prices steady for shoppers. The amendment could even affect crypto debit card networks that process payments for digital currencies.

What The Measure Would Change

The plan echoes a long-running effort known as the Credit Card Competition Act. Under that law, the aim is to break the near-exclusive hold that a couple of big networks have on transaction routing.

Supporters argue that adding competition would force fees down. Banks and card firms warn that changing the rules might raise fraud risks and could make new rules costly to implement.

The tradeoffs are plain. Competition could mean savings for stores. It could also mean changes to how banks protect customers. Some lawmakers worry that forcing changes might unintentionally affect crypto platforms integrated with traditional payment networks.

On Crypto, Politics And Pushback

Reports have disclosed that the swipe fee idea did not make it onto the final agenda at a recent committee markup. Marshall reportedly agreed not to press the amendment at that stage, after talks with other senators and concerns from various groups.

Some lawmakers were wary of adding a high-stakes fight to a bill they want to keep moving. The White House and some senators were said to be uneasy that the swipe fee fight might derail broader market rules being debated. Support and opposition cross party lines, which makes any final outcome uncertain.

Who Stakes Claim

Merchants and retail groups are vocal. They want lower costs now. Consumer advocates back measures that aim to lower everyday prices.

On the other hand, banks, many credit unions, and card networks say their systems are finely tuned to stop fraud and that any forced changes risk weakening those safeguards. Reports note that smaller financial firms worry about compliance costs that could hit their customers.

Featured image from Pexels, chart from TradingView

Cardano’s price and the sentiment of investors are demonstrating a divergence that is crucial in the altcoin’s short-term and long-term performance. Despite the waning price action over the past few days, seasoned investors are showing robust interest in ADA as they continue accumulate the altcoin.

Big Brains Are Buying Back Cardano

Even with heightened volatility in the market, major Cardano investors are jumping into the market at a steady pace. Santiment, a leading market intelligence and on-chain data platform, reported that smart money seems to be quietly positioning itself in Cardano, with seasoned investors building up ADA at a steady and encouraging rate.

In the research shared on the X platform, the platform highlighted that the smart money wallet addresses have been accumulating ADA while the token’s price is being suppressed due to the current market state. Interestingly, these individuals are gradually increasing their exposure during times of muted emotion and low volatility rather than chasing short-term price movements.

Typically, such buying activity among smart traders signals conviction in the token’s long-term prospects since smart capital often moves ahead of the general market’s enthusiasm. With the ongoing bullish sentiment from key investors, there is a possibility that the underlying market structure of Cardano is getting stronger.

The cohort appears to have been quietly buying more ADA for several weeks. However, smaller holders, who are also regarded as retail investors, have been offloading their stash during this period. In the last 2 months, wallet addresses holding between 100,000 ADA and 100 million ADA have acquired an additional 454.7 million ADA, which is valued at more than $161.42 million. 

Meanwhile, retail investors, those holding 100 ADA or less, have dumped over 22,000 ADA, worth $7,810 over the past 3 weeks. When cryptocurrency markets start to stabilize, Santiment stated that whales adding and retail dumping have traditionally created the ideal conditions for an eventual resurgence.

A New Landmark In Terms Of Total Transactions

Despite ADA facing steady volatility that has capped its upward attempts, the Cardano network continues to wax strong. The leading network is experiencing significant adoption and interest as transactions carried out on the blockchain have increased exponentially. 

Cexplorer, the most featured OG blockchain, announced that the network recently hit a new record level in total transactions. Data shared by Cexplorer shows that the total transactions conducted on the network since its foray into the cryptocurrency market have surpassed 118,400,000. 

With more value and interactions resting on the network than ever before, the growth indicates a growing appetite for Cardano and its broader ecosystem. Furthermore, rising transaction counts frequently indicate ongoing demand from users, apps, and developers as opposed to transient increases caused by speculation.

At the time of writing, the ADA’s price was trading at $0.35, indicating a 0.77% increase in the last 24 hours. Its price may be slowly turning bullish, but trading volume has sharply declined by more than 28% over the past day.

On-chain sleuth ZachXBT has revealed the identity of a threat actor who stole over $40 million from the U.S. government’s crypto stash. The White House has confirmed that it is looking into the situation but has not yet said whether its Bitcoin holdings were affected by the theft. 

How This Threat Actor Stole Over $40 Million From the U.S. Government Crypto Wallets

In an X post, ZachXBT revealed that threat actor John Daghita, also known as Lick, stole over $40 million from the U.S. government’s seizure addresses, as his dad owns Command Services & Support (CMDSS), which has an active IT government contract. CMDSS was awarded a contract to assist the U.S. Marshals in managing and disposing of seized and forfeited crypto assets. However, the ZachXBT noted that it remains unclear how John obtained access from his dad. 

The CMDSS company X account, website, and LinkedIn were all deactivated following ZachXBT’s revelation. Meanwhile, the crypto investigator had first drawn attention to John in an earlier X post, stating that the threat actor had been caught flexing $23 million in a wallet address. 

He noted that this wallet was directly tied to over $90 million in suspected thefts from the U.S. Government in 2024 and multiple other unidentified victims from November 2025 to December 2025. John revealed this crypto wallet during a heated argument with another threat actor, Dritan Kapplani Jr., in a group chat about who had more funds in their crypto wallets.  

The Source Of The Funds

Following John’s messages, ZachXBT traced the source of the threat actor’s funds to a wallet (0xc7a2) that received $24.9 million from a U.S. Government address in March 2024 related to the Bitfinex hack seizure, which was a theft from the government. John’s wallet (0xd8bc), which he showed off during the heated argument, is also said to be tied to $63 million in inflows from suspected victims and government-seizure addresses in the fourth quarter of last year. 

John quickly removed all of the NFT usernames from his Telegram account and changed his screen name after ZachXBT’s post. Meanwhile, it is worth noting that the crypto investigator identified John as John Daghitia after rumors began circulating that the threat actor was the same person previously arrested in September 2025. However, it remains unclear for what John was arrested last year. 

Is The U.S. Government’s BTC At Risk?

White House crypto adviser Patrick Witt confirmed in an X post that they are investigating the theft and will provide an update soon. This development is also significant, as U.S. President Donald Trump has already signed an executive order that allocates all U.S. government Bitcoin holdings to the Strategic BTC Reserve. 

Based on the timeline of these thefts from the government’s seizure addresses, John looks to have stolen some of these crypto assets after Trump signed the executive order. Meanwhile, part of the theft occurred under the Biden Administration. There has yet to be confirmation from the government on how much BTC it holds. However, BiTBo data shows that the U.S. government currently holds 198,012 BTC.

SharpLink CEO Joseph Chalom, who previously led BlackRock’s digital assets strategy, framed the Ethereum-versus-Solana debate as a mismatch between narrative and actual institutional behavior: TradFi firms may praise speed and low fees, but the highest-value financial use cases are gravitating to networks optimized for trust, security, and liquidity.

Why Ethereum Beats Solana

Speaking with CoinDesk’s Jennifer Sanasie on Jan. 26, Chalom said he would avoid positioning his view as opinion and instead point to what he called observable market signals. “Maybe I’ll just share facts,” he said. “The fact is that Ethereum has been around for 10 years. It’s the secure, trusted, and liquid ecosystem. And I talk about both the layer 1 mainnet as well as the long set of layer 2s who help do that rollup strategy.”

That longevity, in his telling, matters because institutions aren’t selecting chains the way consumers pick apps. They’re selecting settlement rails for moving money, tokenizing assets, and representing ownership, workflows where operational failure and security assumptions are existential. Solana, Chalom acknowledged, has carved out a reputation for performance. But he drew a hard line on reliability. “Solana has been fast and cheap but it has not been secure. It has had downtime,” he said, arguing that downtime risk is disqualifying for “high value projects.”

Chalom’s thesis is that when the use case is “tokenizing assets” and “moving money,” the decision criteria compress into three buckets. “The real institutions who care only about three things,” he said, are “trust, security, and liquidity.” On that basis, he argued, “they’re building on Ethereum for high value projects,” adding: “It’s happening on Ethereum.”

He also anchored the comparison in stablecoin and tokenized-asset activity, citing a sharp share gap as evidence of where the market is allocating serious volume. “More than 65% of stablecoins and tokenized assets are happening there,” Chalom said, describing that as “10x what you see on Salana.” He reinforced the directional claim immediately after: “Ethereum leads in high quality assets in DeFi, tokenization, and stable coins by a factor of 10 to one over Salana. And that gap is only getting larger.”

Still, Chalom did not argue for a single-chain world. Instead, he mapped Ethereum and Solana to different product surfaces based on security tolerance. “I do think there’s a role for cheap, fast, less secure chains,” he said, and suggested Solana’s comparative advantage shows up where finality speed and cost trump institutional-grade assurances. “I think Solana will win in the memecoin, maybe the gaming space where actually security matters a lot less and speed matters more.”

The subtext is a segmentation story: Ethereum as the default rail for high-value, regulated, reputation-sensitive flows; Solana as the venue for high-throughput consumer and speculative activity where users accept different risk tradeoffs. Chalom insisted this is not about persuasion so much as migration patterns. “It’s not my perspective,” he said. “People are voting with their feet.”

Notably, SharpLink Gaming (Nasdaq: SBET) has emerged as one of the largest corporate ETH holders, with public trackers putting its holdings at roughly 864,840 ETH (about $2.5B at recent marks).

At press time, ETH traded at $2,921.

As Bitcoin’s price continues to face downside pressure and performance, speculation about BTC’s price bottom has grown significantly within the sector or community. However, to accurately determine whether BTC has reached a bottom is highly dependent on on-chain data from several metrics, which are now showing that the bottom is not yet in.

Bitcoin May Not Be Done Correcting

Determining the Bitcoin price bottom has become quite difficult in the ongoing market cycle. In the meantime, several key on-chain metrics are flashing caution and showing data that suggests that the flagship cryptocurrency asset may not have fully found its bottom yet for this market cycle.

After an on-chain analysis, Alphractal, an advanced investment and on-chain data platform, outlined that the BTC market is witnessing steady bleeding, but the true bottom has not been achieved yet. The platform’s analysis is focused mainly on two key metrics, which include the BTC Net Unrealized Profit/Loss (NUPL) and the BTC Delta Growth Rate (Market Cap vs. Realized Cap).

These indications suggest that the market may still be dealing with excess supply and uncertainty, as evidenced by the ongoing pullback in BTC’s price. With the bearish signal from the two indicators, it is clear that the confirmation of a true bottom could need extended data-driven validation or more time.

As seen on the chart, the Net Unrealized Profit/Loss metric has started to drop, suggesting that unrealized gains across the network are starting to compress. In spite of the decline, the metric is still in positive territory. This implies that market participants continue to remain in profits rather than losses.

Alphractal highlighted that the true cycle bottom historically only unfolds once the metric flips negative, entering full capitulation mode. Meanwhile, the BTC Delta Growth Rate is already demonstrating negative movement, signaling the end of speculative activity and the start of the fundamental accumulation phase.

Bearish Outlook Has Intensified Along With BTC’s Price Drop

Following a pullback last weekend, the Bitcoin price is now trading below the $90,000 mark again. According to Swissblock, an investment pioneer, recent price action has reinforced the bearish outlook of the market. 

As the crypto king loses key support at the $89,200 level, the Bitcoin Risk Index is seeing a steady climb, heightening the general bearish sentiment. However, the platform noted that Bitcoin bulls are persistently holding a critical line of defense at the $84,500 mark, which is currently serving as the immediate target for the downside. Swissblock has outlined two separate scenarios that could play out in the upcoming sessions. 

For the bullish case, the platform predicts that if the $84,500 support holds, a liquidity sweep could occur at this point. At the same time, the Risk Index begins to cool off, channeling a high-conviction entry for long positioning. Breaking down the bearish scenario, Swissblock noted that a decline and consolidation below the $84,500 level would likely spark a deeper correction, targeting new lows below the November levels with a primary target at $74,000.

Blockchain technology is beginning to absorb traditional government assets at an alarming pace, with Ripple’s XRP Ledger (XRPL) now hosting US Treasury debt in digital form. The latest reports have revealed a massive increase in tokenized treasuries on the ledger, reflecting not just rising governmental interest in the blockchain but also growing institutional adoption. 

US Treasury Debt Skyrockets On Ripple’s XRPL

Over the past year, tokenized US Treasury debt on the XRP Ledger has skyrocketed to more than $150.19 million. Data from the tokenized asset analytics platform RWA.xyz shows that digital platforms such as OpenEden Digital, Zeconomy, Ondo, and Archax have been the primary drivers behind this latest surge in activity and volume. 

XRPL data also shows that US Treasury debt has not been the only asset class to experience growth on the network. Recent reports revealed that the XRP Ledger achieved a significant milestone, surpassing $1 billion in total tokenized assets. While tokenized US treasury debt contributed significantly to this growth, other asset classes, including stablecoins, private credit, commodities, and private equity, have also recorded substantial volume, reflecting the network’s expanding role in global digital finance. 

Stablecoins recorded the highest volume of over $338 million within the $1 billion tokenized asset growth, representing approximately 160% more than US Treasury debt. In comparison, private equity accounted for $55.2 million, reflecting less than 33% of tokenized treasuries. 

Across all networks, tokenized US Treasury holdings have now reached about $10 billion. While the percentage held by the XRP Ledger is impressive, it still represents just 1.4% of the total. Nonetheless, the growth rate of US Treasury debt on XRPL is striking, showing a more than 2,900% increase from the roughly $5 million on the network in 2025. 

The recent surge in tokenized US Treasury debt on the XRP Ledger underscores the expanding integration of traditional finance with blockchain technology. It also reflects the rising demand for Real-World Asset (RWA) tokenization, which has become a fundamental aspect of Ripple and XRPL’s utility and key driver of the network’s growth and expansion into broader markets. 

Why This Is A Big Deal

Historically, US Treasury debt was tracked and recorded through conventional banking and government systems. As a result, trading relied heavily on intermediaries, transactions and settlements were slow, and most retail investors had limited access. At the same time, Paper records and centralized systems dominated the market, making processes less transparent and tedious.

However, the introduction of blockchain technology has significantly improved how debt is represented and managed. On the XRP Ledger, Treasury debt can now be tokenized, allowing near-instant settlement and real-time verification on a public network. This reduces the reliance on intermediaries and introduces a new level of transparency and security compared to traditional methods. 

The rise of tokenized Treasury debt also signals changes in investor behavior and broader market dynamics. It shows that blockchain-based assets can now compete with traditional markets, offering faster, more efficient, and accessible alternatives for institutions and governments.

Crypto traders are watching quietly. Prices are moving, but not in the way many bulls expected. According to Fundstrat managing partner Tom Lee, during an interview on CNBC’s Power Lunch Monday, the surge in gold and silver has pulled a lot of cash away from riskier bets. That shift has been strong enough to slow the momentum that might otherwise have lifted digital assets sooner.

Precious Metals Steal The Spotlight

Gold has surged to record territory, and silver has climbed sharply, drawing interest from investors seeking a safe place to park money. Reports note gold topped $5,100 after a strong run that added close to 8% since the start of the year, while silver hit about $110 following a 57% gain. Geopolitical stress, tariff fears, and a weaker dollar are cited as reasons for that move. In plain terms: a lot of nervous money went to metal, not crypto.

Lee pointed to the large deleveraging event in October as another drag. Many firms and market makers were hit hard, and margin-driven upside is much smaller now. That means rallies take more time to appear.

Based on reports, parts of the industry are recovering, but some players remain fragile. BitMine, an Ether treasury firm tied to Lee, added 20,000 ETH in a fresh buy, which shows belief is still there at institutional levels.

It seems that Tom Lee(@fundstrat)’s #Bitmine bought another 20,000 $ETH($58.22M) from #FalconX 6 hours ago.https://t.co/OYqF48eaXX pic.twitter.com/GB6DT0HUid

— Lookonchain (@lookonchain) January 27, 2026

Bitcoin Price Action And Market Mood

Bitcoin traded in a tight band around $87,000–$88,000 after recent swings tied to global headlines. It tested support at about $86,000 and failed to push above $95,000 in recent attempts.

Buyers are stepping in on dips rather than chasing gains, and volumes have been mixed. ETF flows have been negative, which points to short-term caution. Still, holding those levels without a sharp drop keeps the story alive.

Risk Appetite Matters More Than Dollar Moves

Reports from CryptoQuant contend that dollar weakness alone won’t send Bitcoin higher if the move is fear-driven. When people flee the dollar because they are scared, they pick the most traditional hideouts — like gold.

For crypto to rally strongly, the dollar needs to weaken because investors are willing to take on risk, not because they are panicked. That difference is subtle but crucial. And that’s precisely what Tom Lee means — that Bitcoin and Ethereum usually jump when gold and silver pause.

What Could Trigger A Shift

A pause or pullback in precious metals could free up capital and change investor focus. Easing from the Fed, or clearer signs that geopolitical tensions are cooling, might push some money back toward digital assets.

Institutional interest in smart contract platforms was highlighted at recent finance events, and some firms are building on Ethereum and similar chains. Those longer-term moves are being made quietly, even while spot prices wander.

Featured image from Unchained, chart from TradingView

Cardano founder Charles Hoskinson used the opening of a Midnight workshop in Sapporo (Japan tour) on Jan. 25 to frame Midnight as Cardano’s “crown jewel” and a missing primitive for mainstream crypto adoption, arguing the privacy layer is positioned to outpace incumbent privacy-focused networks within 12 months.

Why Cardano’s Midnight ‘Eclipses’ All Privacy Projects

Hoskinson told attendees that while crypto spent the past decade perfecting transparent ledgers, it never built a first-class “private side” that real businesses and regulators can work with. “When you have the yin and yang, well, we only built one side of the yin and yang. We only built the transparent side. We didn’t build the private side,” he said. “So the challenge is that blockchains, every single one of them, they’re missing something. They’re missing a component that’s required for real-life business.”

In his telling, the gap sits at the intersection of privacy-enhancing technology (PET), compliance, and an emerging “abstraction” stack aimed at making crypto usable without forcing consumers to learn how blockchains work. Hoskinson argued that regulated activity like KYC/KYB/AML requires selective disclosure, but public chains force a tradeoff between compliance and privacy. “If you share information about yourself on a public network, everyone in the world, everywhere in the world, gets to see that,” he said. “That doesn’t make any sense. That doesn’t make sense to do commerce.”

He extended the same logic to intent-based execution and account abstraction-style UX, where users describe outcomes and a solver network routes liquidity and settlement across chains. “If I know your intentions, I can trade against you,” Hoskinson said, warning that revealing price bounds or execution constraints invites adverse selection. “Never tell me your intention because I can use it against you. So, intentions also require privacy.”

Midnight, he said, is designed to supply those primitives without demanding wholesale migration to a new Layer 1. Hoskinson described the network as built for “hybrid applications” across multiple ecosystems, claiming Midnight’s launch architecture connected it to “eight different ecosystems, seven different blockchains,” so users can stay on chains like Solana, Cardano, Bitcoin, or Ethereum while invoking Midnight’s privacy features.

He also positioned Midnight as a catalyst for Cardano’s DeFi ambitions, acknowledging a participation gap between staking and on-chain application usage. “There’s 1.4 million people staking, but only about 50,000 people participating on a monthly basis in our DeFi ecosystem,” Hoskinson said, adding that the next phase is to upgrade a subset of leading Cardano dApps so they can tap Midnight and market privacy-native products—such as private DEXs, prediction markets, or stablecoins—to users from other ecosystems.

On rollout, Hoskinson said the first stage of Midnight launched in December and that the first mainnet is “very soon” to follow. He highlighted what he characterized as an unusually retail-heavy distribution: “We never sold a single token. We just gave it away,” he said, claiming ADA holders received more than 50% of supply and that early trading activity surpassed $9 billion in volume and more than $1 billion in value.

Hoskinson closed with his boldest projection: “Within a year, Midnight is going to eclipse anybody in the privacy space because we know how to solve these problems,” he said, attributing the edge to the depth of Cardano’s research bench.

“Because we hired 168 scientists, and they happen to have spent the last four decades of their life chasing this. One of the guys working on this wrote the first computer game online. He was at Stanford when they were building the internet, […]. He wrote Pong, and it was the first online game. That’s the legacy we have. Now, 40 years later, he’s a fellow in the Royal Society, the same society that Sir Isaac Newton was a member of. He’s working on this, as is that 22-year-old graduate student, as is the developer here in Japan, and everyone in between, and that’s why we’re going to win. It’s not a US cryptocurrency. It’s global,” Hoskison said.

At press time, ADA traded at $0.3512.

Bitcoin treasury company Strategy has unveiled its latest purchase of the cryptocurrency, this time tokens worth a total of $264.1 million.

Strategy Has Expanded Its Bitcoin Treasury By 2,932 BTC

In a new post on X, Strategy co-founder and chairman has shared the details related to the latest Bitcoin acquisition from the company. In total, the new purchase has added 2,932 tokens to the firm’s treasury at an average price of $90,061 per token.

According to the filing with the US Securities and Exchange Commission (SEC), the buy took place between January 20th and 25th. Strategy funded the $264.1 million acquisition using proceeds from its STRC and MSTR at-the-market (ATM) stock offerings.

In the last two weeks, the company has made purchases involving a substantial size. Last week, the company added Bitcoin worth $2.13 billion, while the week before that, it spent $1.25 billion on the cryptocurrency. Compared to these, the latest buy isn’t too big, but nonetheless showcases continued resolve for accumulation from Saylor’s firm.

Following the latest purchase, Strategy’s Bitcoin reserves have grown to 712,647 BTC, equivalent to about 3.57% of the asset’s total circulating supply. Currently, these holdings are worth around $62.23 billion, up nearly 15% over the company’s investment of $54.19 billion.

Strategy is the largest digital asset corporate holder in the world, with its closest competition being Bitmine, a BTC mining company that pivoted to an Ethereum treasury strategy last year.

According to a Monday press release, Bitmine has also participated in accumulation during the past week, adding 40,302 ETH ($116.5 million) to its holdings. The firm’s total treasury reserve has now risen to 4,243,338 ETH ($12.24 billion), corresponding to a supply share of 3.52%.

Recently, Bitmine has been putting its Ethereum toward staking to earn a passive interest on its holdings. In the past week, the company has increased its locked stake by 171,264 ETH, taking total staked supply to more than 2 million tokens. “Bitmine has staked more ETH than other entities in the world,” said Tom Lee, Bitmine chairman.

In some other news, Bitcoin spot exchange-traded funds (ETFs) saw a high amount of net outflows in the past week, according to data from SoSoValue.

As displayed in the above graph, the weekly Bitcoin spot ETF netflow measured at -$1.33 billion last week. This is the highest outflow that these investment vehicles have witnessed since the end of February 2025.

Just a week prior, the market situation was the complete reverse, as spot ETFs saw net inflows amounting to $1.42 billion. The latest streak of outflows, however, have nearly entirely retraced this growth.

BTC Price

At the time of writing, Bitcoin is floating around $88,000, down more than 5% in the last seven days.

The cryptocurrency market is facing renewed pressure as a sharp contraction in stablecoin supply raises fresh concerns about Bitcoin (BTC) and overall market liquidity. 

Over the past week, the total market capitalization of ERC‑20 stablecoins has dropped by roughly $7 billion, a move analysts say could signal deeper structural weakness rather than a temporary correction.

Bitcoin Outlook Darkens

According to market analyst Darkfost, who shared the data on social media platform X (previously Twitter), this is the first time in the current cycle that the stablecoin market has experienced such a steep weekly decline from approximately $162 billion to $155 billion in just seven days. 

Darkfost described this drop as a clearly negative signal, suggesting that investors are increasingly choosing to exit the crypto market altogether instead of rotating capital within it.

The mechanics behind the trend are relatively straightforward. When demand for stablecoins falls, it typically means investors are converting their holdings back into fiat currency rather than keeping capital parked on-chain. 

As a result, stablecoin issuers burn excess tokens that are no longer needed, leading to a decline in overall supply. For this reason, a shrinking ERC‑20 stablecoin market cap is widely viewed as a bearish indicator.

Importantly, the same pattern is beginning to appear on other blockchain networks, reinforcing concerns that the trend is not isolated to Ethereum-based assets. 

Darkfost also pointed to historical precedent, noting that a similar contraction in stablecoin supply in 2021 coincided with Bitcoin’s transition into a bear market, although the Terra Luna collapse also played a role during that period.

Analyst Warns Of Potential Crypto Liquidity Crunch 

At the same time, macroeconomic risks are resurfacing. Crypto analyst Crypto Rover has warned that the likelihood of a US government shutdown by January 31 has surged to nearly 80%, up dramatically from estimates of just 10% to 15% one day earlier. 

According to his analysis, a government shutdown could pose serious challenges for Bitcoin and crypto markets due to its impact on liquidity. Historically, when shutdowns begin, the US Treasury rebuilds its Treasury General Account (TGA) by pulling cash out of financial markets. 

During the last shutdown cycle, the TGA increased by roughly $220 billion, effectively draining that amount of liquidity from the system. Crypto markets, Rover argues, are particularly vulnerable to such conditions.

In the previous episode, markets initially rallied briefly before liquidity dried up. That was followed by sharp declines, with Bitcoin and Ethereum (ETH) falling between 20% and 25%, while altcoins suffered even deeper losses.

This time, the setup appears even more fragile, according to Rover’s view. Liquidity in the market is already thin, investor confidence is weak, and institutional capital is largely concentrated in equities and gold rather than digital assets.

Furthermore, Rover notes that volatility is elevated, and crypto prices are reacting sharply to relatively small capital flows. Under these conditions, a shutdown-driven liquidity drain could be especially damaging, potentially triggering another severe market sell-off.

At the time of writing, Bitcoin was trading at $88,183, having erased all the gains seen in the first week of the year. It is now down 5% over the past seven days, with the cryptocurrency sitting 30% below the all-time high of $126,000 reached last October. 

Featured image from OpenArt, chart from TradingView.com 

Japan is reportedly likely to approve and list its first wave of crypto-based exchange-traded funds (ETFs) in the next two years as the country’s financial authorities work on rule changes that allow the investment products.

Japan To Join Global Crypto ETF Race In Two Years

On Monday, news media outlet Nikkei Asia reported that Japan’s first crypto ETFs could be listed as early as 2028, offering retail investors easier access to Bitcoin (BTC) and other digital assets.

This would mark a major shift in the country’s regulatory approach to digital asset-based products. Japanese regulators have been cautious about crypto funds, with the Financial Services Agency (FSA) repeatedly expressing its reservations about the investment products.

The FSA plans to amend the Investment Trust Act’s enforcement order to include cryptocurrencies in the list of specified assets for ETFs. Additionally, the agency will propose stronger safeguards to protect investors, Nikkei added without detailing its sources.

Ahead of the regulatory changes, Japanese giants Nomura Holdings and SBI Holdings are preparing to develop the country’s first crypto ETFs. In August, SBI filed to launch an ETF linked to both BTC and XRP, as well as a Digital Gold Crypto ETF, which would allocate 51% to gold and 49% to digital assets to mitigate investment risks.

As reported by Bitcoinist, Japan’s Minister of Finance Satsuki Katayama highlighted earlier this month that US crypto ETFs have expanded as “a means for citizens to hedge against inflation.”

In her New Year’s address at the Tokyo Stock Exchange’s (TSE) Grand Opening Ceremony, Katayama supported a potential launch of crypto-based investment products, suggesting that similar initiatives to those of the US would be pursued in Japan.

Notably, the US approved the first wave of spot crypto ETFs in 2024, based on Bitcoin and Ethereum (ETH), leading pension funds, endowment funds for major universities such as Harvard, and government-affiliated investors to include them in their portfolios.

As of January 23, BTC funds’ total net assets amount to approximately $115.8 billion, according to SoSoValue data. Nikkei noted that Japan’s asset management industry has estimated that Japanese crypto ETFs could eventually reach 1 trillion yen, worth around $6.4 billion.

Authorities Prepare For Japan’s ‘Digital Year’

Japanese authorities have been reviewing their regulatory system over the past few years to develop customer fund safety policies and allow innovation in a more reliable environment.

Last year, the Liberal Democratic Party and the Japan Innovation Party published their upcoming FY2026 Tax Reform. The tax reform is set to introduce significant changes to the existing taxation system, addressing the categorization and regulation of crypto assets, and reclassifying them as financial products.

The reform signals a shift from the regulators’ previous treatment of digital assets as speculative. Moreover, authorities are also exploring introducing a separate taxation system for crypto income, with a flat 20% tax similar to the stock system.

During her New Year’s address, Finance Minister Katayama also recognized the country’s efforts to integrate digital assets and blockchain technology into the local financial markets. She expressed her support of Japan’s development as an asset management nation, affirming that “there is still room for growth.”

Katayama declared that 2026 would be the “Digital Year” for Japan, asserting that this year “is a turning point” in overcoming deflation. Ultimately, she emphasized the importance of stock exchanges in supporting the transition to a growth-oriented economy that opens public access to crypto assets.

The Senate’s effort to advance the crypto market structure bill (CLARITY Act) has hit another delay, as severe winter weather disrupts congressional scheduling and deepens uncertainty around the bill’s path forward.

Following the stalled and ultimately delayed markup of the bill by the Senate Banking Committee, attention had shifted to the Senate Agriculture Committee, which oversees digital asset markets through its jurisdiction of commodities. 

That committee had planned to move ahead with its own markup earlier this week, but the vote has now been postponed to January 29 due to weather-related disruptions.

Snowstorm And Partisan Gridlock Stall Crypto Bill’s Markup

Journalist Eleanor Terrett of Crypto In America reported on Monday that heavy snowfall and icy conditions prompted the Senate to preemptively cancel Friday’s voting session. As a result, committee members are not expected to return to Washington until Tuesday afternoon. 

Although the markup is currently scheduled for 3 p.m., widespread flight delays and cancellations across the country raise questions about whether all members will be able to arrive in time for the vote, which adds to existing political uncertainty surrounding the bill. 

Despite two additional weeks of bipartisan negotiations—which had already pushed back an earlier planned markup from January 15—the legislation remains divided along party lines. At this stage, only Republican members of the committee have publicly voiced support for the bill.

Nevertheless, Terret reported that the broader crypto industry responded positively to the latest draft of the bill released by the Agriculture Committee last Wednesday, January 21, ahead of the scheduled vote. 

Optimism Grows Around Senate Ag’s Draft  

Industry participants have praised the bill’s draft for offering clear protections to noncustodial software developers and blockchain infrastructure providers. The language narrowly targets intermediaries, rather than protocols or end users, a distinction many in the sector view as critical to preserving innovation. 

The draft also notably excludes provisions regulating stablecoin yields, a choice that carries particular significance after Coinbase withdrew its support for the Senate Banking Committee’s version of the bill last week over that very issue.

Despite lingering disagreements with Democrats over key policy elements, the Agriculture Committee’s chair, John Boozman, emphasized last week that progress should not be stalled indefinitely. 

Acknowledging the lack of a final agreement, the chair said the collaborative process had strengthened the legislation and stressed the importance of advancing the bill, expressing optimism about proceeding with the markup in the coming week.

However, even as optimism builds around the Agriculture Committee’s version of the crypto market structure framework, the overall legislative timeline remains unclear. 

Bloomberg has reported that the Senate Banking Committee is expected to delay consideration of its portion of the bill, a move that could push broader negotiations into late February or even March.

Featured image from OpenArt, chart from TradingView.com 

Data shows Foundry USA, the biggest Bitcoin mining pool in the world, has lost a significant portion of its Hashrate to the US winter storm.

Foundry USA Has Seen A Bitcoin Hashrate Decline Of 200 EH/s

The United States is currently experiencing an extreme weather event, with a powerful winter storm sweeping across much of the country. The Arctic air accompanying the storm has brought with it a severe drop in temperatures, causing widespread disruptions to travel and power infrastructure.

Thousands of flights have been canceled nationwide, while the strain on the power grid has left more than 800,000 homes without access to electricity, according to a report from the BBC. Amid all this chaos, the Bitcoin blockchain has also faced a noticeable blow; the cryptocurrency’s Hashrate has sharply gone down as American miners have curtailed power consumption to ease pressure on the grid.

A mining pool that has been significantly affected by the storm is Foundry USA. On Friday, the pool had a total computing power of around 340 exahashes per second (EH/s), while as of Monday, that figure has reduced to just 139 EH/s, according to data from MiningPoolStats.

Before the storm disruption, Foundry’s pool was the largest in the world by some distance, but after the Hashrate drop of almost 60%, its power has come in line with the second-largest Antpool. Due to Foundry being so big, its miners pulling back on power has had a real effect on the total network Hashrate, as data from CoinWarz shows.

Before the weekend, the Bitcoin Hashrate was floating around 1,118 EH/s, but on Sunday it dropped to a low of just 668 EH/s. The metric has seen a rebound on Monday, but its latest value of 776 EH/s is still down more than 30%. The result? The blockchain is processing each block in an average interval of 12.28 minutes, which is 2.28 minutes slower than the expected rate of 10 minutes.

While the storm has impaired Bitcoin for now, the network won’t take long to bounce back. Even in the scenario that Foundry USA’s downtime remains prolonged, BTC will correct for the absence of American miners in the next Difficulty adjustment. Satoshi Nakamoto programmed BTC so that the network always targets a block time of 10 minutes. If miners diverge from this rate, the network adjusts a metric known as the “Difficulty” just enough that miners get back to the desired speed.

Given the scale of the latest Hashrate drop, a sustained disruption would mean that the Bitcoin blockchain would be forced to ease up its Difficulty by a significant factor. Currently, the next network adjustment is estimated to reduce Difficulty by 18%.

BTC Price

At the time of writing, Bitcoin is trading around $87,700, down 5.7% in the last week.