A startling claim has resurfaced across the crypto community that all Ethereum private keys are technically “public.” Analyst Laxo highlighted a website called Keys.lol, which generates every possible private key. In theory, anyone could find your key and access your assets. However, the practical reality makes this almost impossible. 

Ethereum has so many possible addresses—2¹⁶⁰ in total—that the chance of randomly finding someone’s working key is unimaginably tiny. So, even though your key technically exists among all possible combinations, actually finding it is basically impossible.

you private keys are leaked!

..well, technically, yes. there's a website called keyslol and it stores all private keys that ever been (or could be) generated.

yes, all your private keys are stored there. and ANYONE could find it and steal all your assets.

or could not? the… pic.twitter.com/D72nycKSHl

— Laxo (@0xLaxo) February 2, 2026

Keys.lol does not actually save every private key in a database. Instead, it creates pages with 128 keys at a time for the entire key range. This smart method lets people check balances or browse keys without needing an impossible amount of storage space. 

“Yes, your private key is on this website too, but don’t worry, nobody will ever find it,” the site assured. Even if you open a random page, the chance of finding an active wallet is tiny. So, the site shows just how huge Ethereum’s keyspace is, without posing any danger.

Understanding Ethereum key generation

Ethereum addresses come from private keys through a specific process. First, a private key is just a random 256-bit number. Then, this key creates a 512-bit public key using a type of math called elliptic curve multiplication. Finally, the Ethereum address comes from the last 20 bytes of this public key and is what controls the account. 

Security expert Vic Genin explained, “Even though a lot of people call the address the public key, it’s actually not the case in Ethereum. There is a separate public key that acts as a middleman.

Private keys need to be generated using strong random numbers. If a key is weak or predictable, it can be at risk. The infamous Blockchain Bandit took advantage of this; as cited by Chainalysis, it targeted weak Ethereum private keys in 2015 and 2016. Using a method called “Ethercombing,” the Bandit emptied over 10,000 wallets and stole about 51,000 Ether. This shows that the risk comes from poor randomness, not from the fact that all possible keys exist.

Public keys in transactions

Ethereum also lets you recover a public key from a transaction, but only in a limited way. Each signed transaction has r, s, and v values, which can be used to rebuild the public key without needing the private key. However, this procedure doesn’t put accounts at risk, because finding the private key is still impossible. 

Additionally, the chance of randomly creating a private key that already exists is about 1 in 1.15×10⁷⁷—far more than grains of sand across countless planets. Hence, even trying hard to guess a key is purely theoretical, not practical.

Risks beyond mathematics

Besides the extremely low chances of cryptographic collisions, losing or mismanaging private keys is a real danger. Fireblocks’ 2021 custody dispute shows this. The company lost two key shares needed to withdraw Ethereum, making over 38,000 staked ETH inaccessible. 

In the same way, losing money due to improper storage is more serious than these hypothetical mathematical problems. The user should be concerned with properly securing keys in their hardware wallets or personal wallets, rather than the abstract probabilities.

Websites like Keys.lol and PrivateKeys.pw can show if a wallet has money, had money before, or was never used. While this highlights potential risks, actually guessing someone’s active wallet by brute force is basically impossible.

Also Read: Crypto Users on MacOS Targeted in Sneaky Token Vesting Malware Scam

Global asset manager VanEck has announced a partnership with ING Germany, the country’s third-largest bank, to offer retail customers seamless access to cryptocurrency-linked investment products. Beginning February 2026, ING Germany’s retail clients can trade VanEck’s suite of Exchange-Traded Notes (ETNs) directly through their existing “Direct Depot” brokerage accounts.

This integration allows investors to gain exposure to digital assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) without the complexities of managing private keys or digital wallets. The firm already has a history of moving in asset classes, which include gold investment, emerging markets, and EFTs, and is now expanding into digital assets. 

Lowering the barrier to entry

The partnership aims to bridge the gap between traditional finance (TradFi) and the digital asset economy. By utilizing familiar banking infrastructure, ING Germany is positioning itself as a primary gateway for regulated crypto exposure.

Under the new arrangement, ING Germany customers can trade 11 VanEck crypto ETNs with reduced or zero execution costs:

• Orders of €1,000 or more: No execution fees
• Orders below €1,000: Flat fee of €3.90
• Savings plans: Executed free of charge

The pricing model is designed to make crypto investments more accessible for long-term and retail investors using traditional brokerage accounts.

“Many investors want a solution that fits into their existing portfolio structures and also offers transparent costs. This partnership delivers exactly that—it brings crypto exposure to where investors are already investing: in their securities accounts,” says Martijn Rozemuller, CEO of VanEck Europe.

List of VaEck crypto ETNs available

The 11 crypto ETNs offer both single-asset and diversified exposure:

• DE000A28M8D0 VanEck Bitcoin ETN
• DE000A3GPSP7 VanEck Ethereum ETN
• DE000A3GWEU3 VanEck Crypto Leaders ETN
• DE000A3GWNE8 VanEck Algorand ETN
• DE000A3GV1T7 VanEck Avalanche ETN
• DE000A3GXNV0 VanEck Chainlink ETN
• DE000A3GSUC5 VanEck Polkadot ETN
• DE000A3GV1U5 VanEck Polygon ETN
• DE000A3GXNT4 VanEck Smart Contract Leaders ETN
• DE000A3GSUD3 VanEck Solana ETN
• DE000A3GSUE1 VanEck TRON ETN

These products allow investors to participate in the crypto market via regulated securities traded on traditional exchanges.

VanEck’s “altcoin” ETFs

The partnership with ING Germany follows VanEck’s recent move in the U.S. market. Earlier this year, VanEck launched the first Avalanche exchange-traded fund on Nasdaq, listed under the ticker VAVX, giving investors regulated exposure to AVAX without directly holding the token. The ETF tracks AVAX’s price and incorporates staking rewards into its net asset value, offering a yield of about 5.6% as of January 23.

While early trading activity was modest, the launch reflects a broader shift toward using familiar ETF vehicles to gain exposure to blockchain infrastructure. It also serves as a test of investor appetite for crypto assets beyond Bitcoin and Ethereum. Institutions are increasingly seeking to diversify their exposure within regulated market structures.

Further, traditional banks are also increasingly adopting crypto-linked products. The distinction between traditional finance and digital assets is becoming increasingly hazy. The VanEck-ING Germany partnership signals increasing institutional acceptance for crypto ETNs in Europe, offering regulated low-cost access to digital assets through established banking platforms. 

Also Read: Who Bought 49% of Trump-Linked Crypto Platform for $500M?

In the wild, unpredictable world of cryptocurrency, chaos isn’t just a bug—it’s the main feature. One day you will be vibing and the very next; prices swing like pendulums on steroids, projects rug-pull overnight, and regulatory hammers fall with the subtlety of a sledgehammer. 

But nothing embodies this madness quite like Binance and its enigmatic founder, Changpeng Zhao (better known as CZ). Just when you thought the drama had peaked with accusations on Binance over its alleged role in the October 10 crash, the exchange dropped another bombshell, which seems to be an industry-friendly move but it is actually a camel’s nose. 

On January 30, Binance announced that it is converting the $1 billion Secure Asset Fund for Users (SAFU) from stablecoins into Bitcoin, right as BTC slumps to multi-month lows! Is this a savvy hedge against fiat volatility, or a cynical play to profit from the dip at users’ expense? 

SAFU Funds moving into Bitcoin: Why now?

As someone who’s watched this space evolve from Bitcoin’s early days to today’s prediction markets frenzy, I’ll say it straight: this move reeks of opportunism, and it’s emblematic of the deeper rot in centralized exchanges like Binance. 

If we look at it historically, the funds were first sitting majorly in BNB, partly in BUSD and Bitcoin. Later, the team decided to move it all to USDC in April 2024, following community criticism. Now, adjusting for the third time, the exchange is moving all of it (nearly $1 billion) into Bitcoin—just when the broader market crash appears—”opportunistically” as we reported intentionally. 

What’s SAFU though?

Launched in July 2018, this emergency fund was Binance’s way of assuring users that their assets were protected in case of hacks or operational failures. It is regularly funded by a slice of trading fees, now growing into a $1 billion buffer, mostly in stablecoins like USDC for stability. 

The idea was simple: “Funds are SAFU,” as CZ famously tweeted during a system outage, turning it into a meme that reassured millions. But here’s the kicker—despite its noble purpose, SAFU has been tapped only once, in a minor incident years ago, leaving questions about its real utility. 

Now, with Bitcoin trading at depressed levels, Binance announces a full conversion to BTC over 30 days, starting with an initial $100 million batch. They promise to rebalance if BTC’s value dips below $800 million, but let’s be real: this isn’t about protection; it’s about positioning Binance to ride the next bull wave while users foot the volatility risk.

Why now? Crypto markets are in turmoil, with Bitcoin down 40% from its all-time high. At this time, converting stable assets to BTC when it’s “down” screams bottom-fishing. Binance claims it’s for long-term resilience, but skeptics—and there are plenty—see it as a way to juice profits. 

After all, if BTC rebounds, that $1 billion becomes a windfall for the exchange, not directly for users. And if it tanks further? Well, SAFU’s there to cover losses, but the optics are terrible. 

This comes amid a chorus of X posts lambasting CZ and Binance for everything from market manipulation to enabling scams. One viral thread calls CZ “calculated” in scamming everyday people, while another ranks him atop a “crypto crime tier list.” It’s not just noise; it’s a symptom of eroding trust in the platform that handles more volume than anyone else. 

Crypto Crime Tier List

Number One: Keep Building @cz_binance pic.twitter.com/nlHPMi7y0g

— Foxy 🦊 (@Foxyyeth) January 27, 2026

The history of CZ: a wolf in sheep’s clothing?

CZ’s “hideous history,” as some call it, only amplifies the skepticism. Born in China and raised in Canada, Zhao built Binance from a Shanghai startup in 2017 into the world’s dominant exchange, amassing a fortune estimated to be around $80 billion. But, as any billionaire, his success came with shadows. 

In 2023, CZ pleaded guilty to violating U.S. anti-money laundering laws, admitting Binance allowed terrorists, drug traffickers, and ransomware gangs to launder billions. Prosecutors in the U.S. highlighted how the platform welcomed criminals, with one compliance officer reportedly joking about “washing drug money.” 

Zhao served four months in prison, though merely a slap on the wrist compared to Sam Bankman-Fried’s 25 years for FTX’s fraud. Then, in October 2025, President Trump pardoned him, citing no “identifiable victims” and framing it as Biden-era overreach. 

Critics called it “disgusting” pay-to-play, especially after reports of Binance’s $2 billion investment in Trump’s World Liberty Financial stablecoin, but well that’s a whole another story. 

Zhao’s post-pardon life? Back to influencing crypto from his Dubai base, a hub for the ultra-rich and, if not all, some shady figures. Dubai’s allure for CZ isn’t hard to see. No extradition treaty with the U.S. made him a flight risk during his trial and judges twice blocked his return there. 

The emirate’s lax regulations and crypto-friendly vibe attract everyone from Russian oligarchs evading sanctions to alleged fraudsters. CZ’s residence there fueled suspicions of criminal associations, though he denied any wrongdoing. 

Binance’s alleged role in Money Laundering

While CZ’s story speaks of his personal quests, Binance’s past speaks of volumes with the U.S. Treasury officials confirmed in the past that the exchange funneled money to Hamas, Al-Qaeda, and ISIS. 

A 2025 lawsuit by Oct. 7 Hamas attack victims accuses Binance of aiding over $1 billion in terrorist transactions, even after U.S. warnings. Zhao’s lawyers argue no “special relationship” with groups like Hamas, but the allegations stick: Binance prioritized growth over compliance, becoming a “conduit for illicit funds.” 

CZ Vs Crypto People 

Then there’s the drama reel. CZ’s feud with FTX‘s Sam Bankman-Fried (SBF) was legendary back then. In November 2022, CZ tweeted about dumping $500 million in FTT tokens, triggering a bank run that collapsed FTX and wiped out $8 billion in user funds. He signed a non-binding acquisition letter, only to back out after “due diligence,” leaving SBF to face fraud charges. 

Fast-forward to Hyperliquid: As the decentralized exchange surged in 2025, eating Binance’s perps market share, CZ launched and promoted rival Aster, which was backed by his family office YZi Labs. Hyperliquid’s founder accused Binance of underreporting liquidations during crashes, while CZ touted Aster’s privacy features as superior. Competition? Sure. But whispers of sabotage linger, especially after reports Circle was buying Hyperliquid’s token before Aster’s push. 

The WazirX saga is another black mark. Binance announced acquiring the Indian exchange in 2019, but in 2022, CZ denied it ever happened, citing incomplete docs. When WazirX suffered a $234 million hack in 2024, Binance washed its hands, claiming no control—despite WazirX’s insistence on legal ties. Users lost big, and the feud escalated to litigation by 2025. This denial game eroded trust, painting Binance as evasive when convenient. 

Binance’s alleged role in October 10 crash

All these stories sound dramatic enough but nothing captures the current backlash like the October 10 crash. This “10/10 nightmare” wiped out over $19 billion in liquidation cascade. The embryonic point of this largest ever crash was said to be a technical glitch on Binance. 

Apparently, Binance is the largest crypto exchange with highest liquidity, and such occurrences on the platform will definitely shake the broader crypto market. 

OKX CEO Star Xu blamed it squarely on Binance’s “irresponsible” USDe APY campaign, which looped leverage without limits, turning a minor shock into systemic failure. Xu called it worse than FTX’s collapse, with cascading depegs and near-zero token prices. 

However, CZ dismissed it as FUD, attributing it to tariffs and leverage, not Binance errors. But users reported their sell orders executing while buy orders failing, fueling manipulation claims. Binance compensated $600 million, but critics say that’s peanuts compared to the damage. 

Recent callouts to CZ 

Given all these feuds, CZ was all over X (formerly Twitter) and crypto media in the past three weeks. A number of industry leaders called out that the crypto markets are not functioning the same as they were before the October 10 crash. Recent X posts amplify the vitriol, with one user calling CZ a “net negative” since 2021, while another accuses him of destroying crypto alongside Trump. 

Another article paints Binance as predatory, liquidating its own users weekly via volatility engineered with partners like Wintermute. And Justin Sun’s ex-girlfriend’s “Epstein files” tease more dirt on CZ’s circle. Even semantic searches reveal viral exposes on Binance scandals since 2024. 

While CZ has been around in the crypto space since a while now, he has been at the center of “a lot of” controversies. Not all crypto entrepreneurs are speaking against him currently but the wrath of users is largely visible within discussion on X. 

Final takeaway

The crypto landscape has long argued for decentralization over CZ’s centralized empire. Binance’s stark dominance creates a single point of failure, as the October 10 crash showed. 

At this point, CZ’s pardon and SAFU pivot feel like rewards for bad behavior, not redemption. Crypto needs transparency, not egos. If we let exchanges like Binance game the system, the chaos will only worsen. 

It’s time to decentralize or die trying.  

Also read: FTX Ghosts Return as Binance Faces Withdrawal Halt Amid Bitcoin Crash

Tether, the issuer of the USDT stablecoin, has open-sourced its Bitcoin Mining Operating System (MOS), in a push toward more decentralized Bitcoin mining. The company announced the move on February 2, 2026, making the software publicly available to the mining community.  

This update was announced at the 2026 Plan ₿ Forum in San Salvador, highlighting Tether’s expanding focus on Bitcoin infrastructure development.

The announcement also marks a strategic pivot for the $120 billion plus company, aiming to break the “black box” of proprietary software that has long dominated industrial-scale mining operations.

A unified “nervous system” for miners

Current mining operations often resemble a patchwork of disconnected software: one for hashrate monitoring, another for electrical transformers, and a third for cooling systems. MOS seeks to replace this with a single operational layer.

It’s a special computer operating system for Bitcoin mining, designed specifically to run and manage mining hardware and operations. MOS provides end-to-end visibility across mining sites—covering:

• Mining hardware performance
• Energy consumption and efficiency
• Device health and failures
• Infrastructure and site-level operations

Tether ❤️ Bitcoin

Tether Mining OS is now fully opensource.

A complete operational platform that can scale from a home setup to industrial grade site, even across multiple geographies.

Super modular, P2P encrypted networking layer.
It supports a long list of miners,… https://t.co/VzXywA6IZc

— Paolo Ardoino 🤖 (@paoloardoino) February 2, 2026

This flexibility removes the need for centralized third-party software and reduces dependence on proprietary mining management platforms.

“Whether it’s a small operator running a handful of machines or a full-scale industrial site, the same operating system can scale without reliance on centralized, third-party software,” said Paolo Ardoino, CEO of Tether.

Introducing the Mining SDK

Alongside MOS, Tether unveiled the Mining SDK, the foundational framework behind the operating system. SDK stands for Software Development Kit. It is a modular toolkit for developers that makes it easier to build new mining software or tools by using ready-made building blocks instead of starting from scratch.

While MOS is ready for immediate deployment, the SDK is being released as a collaborative project to be finalized with the open-source community in the coming months.

The Mining SDK provides developers with:

• Pre-built modular components (“workers”)
• Simple APIs for device and infrastructure integration
• A UI development kit to quickly build dashboards and internal tools

This allows developers and mining companies to build custom mining software without core infrastructure, dramatically lowering development time and cost.

Shifting the competitive landscape

The move reflects a broader shift in Bitcoin mining, where competition is increasingly being defined by operational efficiency rather than access to proprietary technology. 

By open-sourcing its mining software stack, Tether aims to lower entry barriers for new miners, enable customization without vendor lock-in, reduce centralization in mining infrastructure software, and strengthen the long-term resilience of the Bitcoin network.

Ardoino shared that the goal is to make Bitcoin mining more open, accessible, and competitive; a goal that “ultimately strengthens the resilience of the Bitcoin network.”

Also Read: Tether Posts $10B Profit as U.S. Treasury Holdings Hit Record $141B

Binance faced a sudden withdrawal halt on Tuesday, reigniting fears of an FTX-style crisis among crypto traders. The world’s largest exchange attributed the disruption to technical difficulties, reassuring users that withdrawals resumed promptly.  

Binance first posted on X, stating, “We are aware of some technical difficulties affecting withdrawals on the platform. Our team is already working on a fix, and services will resume as soon as possible.” Hours later, the exchange confirmed the issue was resolved: “The issue has been identified and fixed. Withdrawals have resumed and are being processed now.”

The issue has been identified and fixed.

Withdrawals have resumed and are being processed now.

— Binance (@binance) February 3, 2026

The disruption came amid volatile markets, with Bitcoin dipping below $76,000 over the weekend and currently trading at $78,793 as per CoinMarketCap data. CoinGlass data shows 104,205 traders liquidated in the past 24 hours, totaling $320.09 million. 

Following the sudden withdrawal halt, users feared a repeat of past collapses like FTX. However, the exchange emphasized the outage stemmed from technical issues, not solvency problems. 

Market impact and user sentiment

Apart from technical problems, recent market swings made traders even more nervous. In just three days, nearly $3 billion worth of crypto positions were liquidated as digital assets fell along with stocks and metals. 

The Binance outage is also similar to the halt in the withdrawal of USDC in the past, which took place in December 2022. Today, after this halt, the crypto community on the X started spamming the reply section with ‘Hyperliquid’ in response to Binance’s post, a typical slang used to promote the shift toward decentralized trading on Hyperliquid, a non-custodial crypto exchange. 

Some even jokingly said ‘FTX 2.0,’ echoing the high-profile crashing of the FTX exchange in 2022.

Binance’s financial health and SAFU strategy

In the 2022 market wide turmoil, Binance cleared rumors about insufficient reserves by explaining their model of being debt-free and capital-separated. The exchange further clarified that their users’ assets are fully supported and that there are no external investments in their assets. 

Regarding stablecoins, Binance further clarified that during the pause in USDC withdrawals, other stablecoins like BUSD, USDT, USDP, and TUSD are fully withdrawable at a 1:1 ratio.

More recently, Binance moved its $1 billion Secure Asset Fund for Users (SAFU) completely into Bitcoin. They did this gradually over 30 days to protect the fund during market swings. 

Binance said Bitcoin is a key long-term asset to keep user funds safe. Since 2018, the SAFU fund has recovered over $1.09 billion in mistakenly sent assets, including $48 million from 38,648 cases just in 2025.

Also Read: DOJ Emails Reveal Jeffrey Epstein Invested $3M in Coinbase in 2014

The President of the United States, Donald Trump, has denied having any role in a reported $500 million cryptocurrency deal involving his family and a member of the Abu Dhabi royal family, saying he was not aware of the transaction and that his sons were managing the business separately.

Speaking to reporters in the Oval Office on Monday, Trump said he had no direct knowledge of the deal, while acknowledging that cryptocurrency has become a major area of investment.

“I don’t know about it,” Trump said. “I know that crypto is a big thing.”

He added that the business decisions were being handled by his family. “My sons are handling that — my family is handling it. And I guess they get investments from different people.”

What the World Liberty Financial deal is about

The deal centers on World Liberty Financial (WLFI), a cryptocurrency platform closely linked to the Trump family. According to reporting by the Wall Street Journal, emissaries of Sheikh Tahnoon bin Zayed Al Nahyan, a senior member of the Abu Dhabi royal family, reached an agreement with Eric Trump to purchase a 49% stake in WLFI for $500 million.

The agreement was reportedly finalized four days before Donald Trump was inaugurated as US president last year. The WSJ based its report on internal WLFI documents and comments from people familiar with the matter.

According to Fortune, the investment was not executed directly by Sheikh Tahnoon himself but through two senior lieutenants closely associated with him, both of whom hold leadership roles at G42, an Abu Dhabi-based technology and investment group backed by the royal family. Their involvement further tightens the link between the crypto deal and the UAE’s state-aligned tech and investment ecosystem.

Breakdown of the $500 million investment 

The investment was structured in phases, beginning with an initial payment of $250 million. Of that amount, $187 million was directed to entities linked to the Trump family. According to the report, at least $31 million was earmarked for entities associated with Steve Witkoff, a co-founder of World Liberty Financial who currently serves as the US special envoy to the Middle East.

Another $31 million was allocated to an entity connected to the platform’s other co-founders, Zak Folkman and Chase Herro.

The investment was made through Aryam Investment 1, a company backed by Sheikh Tahnoon, which would become World Liberty Financial’s largest shareholder if the full transaction is completed.

According to Fortune, World Liberty Financial was launched in 2024 as a decentralized finance platform, marking one of the Trump family’s most significant moves into the cryptocurrency space. Before the Abu Dhabi stake purchase, the project had already brought in about $550 million through token sales, highlighting its rapid growth ahead of the equity investment.

Why the deal has drawn wider attention

The transaction has attracted attention not only because of its size and timing, but also because of Sheikh Tahnoon’s broader diplomatic and business relationships with the United States.

The scrutiny has also intensified due to overlapping financial flows within the Trump-linked crypto ecosystem. Fortune notes that World Liberty Financial later launched its own stablecoin, USD1, which gained prominence after MGX, another Abu Dhabi-backed entity, used USD1 to settle a $2 billion investment into Binance. This effectively tied Emirati sovereign capital to a Trump-issued digital currency.

Sheikh Tahnoon is the Chairman of Group 42 Holding Ltd. (G42), an Abu Dhabi-based artificial intelligence company. In December last year, G42 received approval from the US Department of Commerce to purchase advanced AI chips from major American firms, including Nvidia Corp., Advanced Micro Devices Inc., and Cerebras Systems Inc., following discussions with US officials at the White House.

The timing of the crypto investment, the approval of advanced AI chip sales, and the involvement of Sheikh Tahnoon’s close associates have prompted questions about whether diplomacy, access to sensitive technology, and private business interests intersected during the presidential transition.

While no wrongdoing has been alleged, the convergence of these factors has drawn heightened scrutiny because it brings together foreign policy decisions, national-security-linked technology, and a substantial investment in a Trump-linked crypto venture.

Political and regulatory response

The reported deal has also prompted questions from US lawmakers. In January, Democratic Senator Elizabeth Warren urged banking regulators to delay reviewing World Liberty Financial’s application for a bank charter until President Trump divested his interest in the company.

Ethics watchdogs cited by Fortune have warned that such arrangements could revive concerns tied to the Emoluments Clause of the US Constitution, which bars a sitting president from receiving benefits from foreign governments. While no formal violation has been alleged, critics describe the structure and timing of the deal as a textbook example of a potential conflict of interest.

The Office of the Comptroller of the Currency (OCC) later rejected that request, stating that political or personal financial ties would not affect the review process and that WLFI’s application would be evaluated under the same “rigorous review” standards applied to other companies.

Company pushes back on claims

World Liberty Financial has maintained that President Trump had no involvement in the transaction after taking office. Responding to the reports, company spokesman David Wachsman said, “Neither President Trump nor Steve Witkoff had any involvement whatsoever in this transaction and have had no involvement in World Liberty Financial since taking office.”

He also defended the company’s approach to raising capital, adding, “The idea that, when raising capital, a privately-held American company should be held to some unique standard that no other similar company would be held is both ridiculous and un-American.”

What comes next

While no investigation has been announced, the scale of the investment, its timing just before Trump’s inauguration, and the involvement of a foreign royal have ensured continued attention from regulators, lawmakers, and the media.

For now, Trump continues to distance himself from the deal, while the company insists the transaction was conducted independently, as questions around politics, crypto, and global capital remain firmly in focus.

Also Read: Could Kevin Warsh’s Crypto Ties Boost Trump’s Financial Play?

Blockchain security firm SlowMist has warned that a new phishing attack is putting macOS users at high risk. In a latest post, the firm shared that Chainbase Lab has detected a phishing email disguised as an “audit/compliance confirmation.” The emails lured recipients to reveal sensitive information, including system credentials. 

Chainbase also revealed the malicious samples with SlowMist for deeper analysis. Both the firms confirmed that the campaign uses multi-stage, fileless malware specifically targeting Mac devices. 

🚨 Threat Intelligence | Analysis of Token Vesting Phishing Poisoning 🚨

Recently, @ChainbaseHQ detected a phishing email campaign disguised as “audit/compliance confirmation” and shared the sanitized samples with the SlowMist team. We jointly analyzed the campaign and confirmed… pic.twitter.com/0em6y2M1k6

— SlowMist (@SlowMist_Team) February 3, 2026

The attackers initially ask users to “confirm the company’s legal English name,” then share a follow up email titled “FY2025 External Audit” or “Token Vesting Confirmation — deadline.” These messages contain Word or PDF attachments. 

However, these attachments are not regular documents, but rather disguised AppleScript malware. Opening these attachments allows the victims to unknowingly install malware that can allow hackers to steal important information from them. As such, this malware campaign is a mix of social engineering, technical deception, and sophisticated memory-resident malware.

How the malware works on macOS

The malware file is given the name “Confirmation_Token_Vesting.docx.scpt” and is designed to appear as a legitimate document file due to its use of a double extension. Once executed, the malware displays fake progress bars to resemble a system update or repair process. 

At the same time, it will display legitimate-looking password prompt pop-ups to steal system credentials. “When the user enters a password and clicks ‘OK,’ the script invokes the dscl command to verify whether the password is correct,” SlowMist said.

The malware also tries to sneak past Mac’s built-in privacy protections. It quietly gives itself access to your files, camera, screen, and keyboard. On top of that, it installs a hidden program that lets hackers control your Mac and run additional harmful code. The backdoor connects to a remote server to collect information about your Mac and run more harmful programs. Hackers hide their tracks using temporary websites like sevrrhst[.]com.

Connection to broader crypto phishing trends

This is not the first time SlowMist has alerted cryptocurrency users. In January 2026, the company raised awareness regarding a MetaMask scam involving false two-factor authentication messages. The victims were redirected to false sites, leading them to leak their seed phrases. 

🚨 New #metamask phishing scam alert

Attackers are impersonating a “2FA security verification” flow, redirecting users via look-alike domains to fake security warnings with countdown timers and “authenticity checks.”

The final step asks for your wallet recovery phrase — once… pic.twitter.com/3bX9U1wZbs

— SlowMist (@SlowMist_Team) January 5, 2026

In December 2025, a phishing attack occurred on a Solana digital wallet, causing users to sign transactions and resulting in the loss of over $3 million worth of cryptocurrency. The hackers changed the ownership of the digital wallet, giving themselves complete access without the owner’s knowledge. SlowMist explained, “You thought you just connected your crypto wallet to a website, but in reality, you gave all your money to a stranger.”

Besides going after wallets, SlowMist also warned earlier about AI-powered phishing. Hackers tampered with AI search results to show fake imToken wallet links. People who clicked these links risked malware or phishing attacks. Hence, the firm emphasized checking all URLs carefully and only downloading wallets from official sources.

🚨SlowMist Security Alert🚨

Beware of AI Pollution! We tested mainstream AI assistants for @imTokenOfficial's official website — some returned phishing links!🎣

✅The official website of imToken is: https://t.co/LnehWwXDE0

⚠️AI boosts productivity, but many treat it as a… pic.twitter.com/m3FQ9TkbbG

— SlowMist (@SlowMist_Team) April 3, 2025

This Mac phishing attack shows how clever hackers are becoming. People should be careful with unexpected emails, check attachments before opening, and make sure links are real.

Also Read: Korea’s FSS Launches VISTA to Combat Crypto Price Rigging

South Korea’s Financial Supervisory Service (FSS) announced on Monday that it would begin using a new AI-based surveillance system to combat unfair virtual asset trading. The system, the Virtual Assets Intelligence System for Trading Analysis (VISTA), was developed by the regulator’s Virtual Asset Investigation Bureau.

According to the official announcement, VISTA uses a new sliding window grid search algorithm to automatically spot price manipulation. The upgrade was launched in Seoul to tackle the growing complexity of high-frequency trading and API-based market abuses that have often escaped manual checks.

Using the new system, the FSS hopes to better protect consumers and establish a transparent order in the rapidly changing virtual asset market. This is a major shift from the laborious process of manual checks to high-speed data processing.

Enhanced detection capabilities

The FSS confirmed that the new algorithm can break down suspicious trading periods into sub-second intervals. This allows for a level of analysis that human investigators couldn’t achieve before. The regulator stated that the system has already shown its effectiveness by identifying all suspicious intervals in previously closed cases and even uncovering additional manipulative actions that investigators had previously missed. 

This launch is a key part of the FSS’s larger strategy to incorporate strong computing power, including high-performance GPUs and CPUs, into its daily enforcement activities to keep up with the technical challenges of the cryptocurrency sector.

Evolution of infrastructure

The development builds on the FSS’s earlier efforts to improve its internal Virtual Asset Intelligence System. Since it started, the agency has used Python-based analysis tools to visualize trading patterns and identify unusual transaction indicators. 

However, as unfair trading practices became more advanced and high-frequency, the FSS recognized the need for a more powerful infrastructure. In late 2025, the agency began to prepare for this transition by acquiring high-performance servers to support AI integration and parallel data processing.

Advanced VISTA technology

The updated VISTA platform centers on the sliding window grid search technique. Unlike traditional methods that look at broad snapshots, this approach analyzes every possible sub-segment from time-series data, from fractions of a second to several months. 

Because this method requires extensive computational resources, the FSS has optimized its platform for parallel processing. This allows it to analyze hundreds of thousands of segments at the same time.

In the pilot testing involving five different digital assets, the algorithm either matched or outperformed human investigation efforts, as evidenced by the higher abnormal trading indicators in all test scenarios.

Future AI roadmap

The FSS plans to expand its AI capabilities through a multi-stage roadmap set for completion by the end of 2026. The next phase will involve the development of clustering algorithms to automatically identify groups of suspicious accounts participating in organized price manipulation. 

The regulator also plans to employ Large Language Models (LLMs) to analyze text data from thousands of different virtual assets to identify possible fraud. The final phase will involve the development of a network graph-based tracking system to analyze on-chain data and fund movements, enabling investigators to view connections between suspects and their transactions.

Future global regulation

The FSS is positioning itself as a leader in crypto regulation by moving toward an AI-focused enforcement model. With the automation of the detection of price manipulation, as well as the expansion of services into account clustering and on-chain tracking, the agency believes that it will be able to largely reduce the processing time of cases. 

The FSS said that it will continue to improve its AI-powered investigation system to quickly detect unfair trading. It will take strict actions through thorough investigations to protect users and create a stable market.

Also Read: South Korea Dismantles $102M Crypto Laundering Ring

Newly released emails from the U.S. Department of Justice (DOJ) revealed that Jeffrey Epstein made a $3 million investment in the cryptocurrency exchange Coinbase in December 2014. For the unversed, Epstein, an influential American financier, later became widely known for serious crimes, including sex trafficking of minors. He also had strong ties with people in politics and the technology sector.

The recently released emails reveal that the investment was arranged through Brock Pierce, co-founder of Tether and Blockchain Capital, and that Coinbase co-founder Fred Ehrsam was aware of the arrangement.

In one message dated December 3, 2014, Ehrsam wrote, “I have a gap between noon and 3pm today, but again, not crucial for me, but would be nice to meet him if convenient. Is it important for him?”

Epstein’s Coinbase investment and cash-out

According to the documents, the investment took place in 2014 when Coinbase was valued at $400 million. Today, the exchange is worth about $51 billion. 

In 2018, Epstein sold half of his Coinbase equity back to Blockchain Capital, receiving nearly $15 million, while retaining the other half of his stake. Brock Pierce confirmed the transaction in emails and at one point questioned whether the deal was fully completed, suggesting some confusion over the arrangement.

Epstein also had connections with other cryptocurrency ventures. The emails show he invested in Blockstream, a company co-founded by early Bitcoin developer Adam Back. He also met with prominent figures in tech and finance, including former U.S. Treasury Secretary Larry Summers, at his Manhattan townhouse to discuss Bitcoin. 

Pierce described the Coinbase fundraising round as “the most platinum-plated deal in the space.”

Epstein also asked LinkedIn founder Reid Hoffman for advice on how much he should invest. Hoffman replied, “I probably wouldn’t play. But I may not be up-to-date on interesting internal news.”

Tax concerns and other connections 

Epstein-related filings show he was concerned about cryptocurrency taxation in the United States. In a February 2018 email, he asked former White House advisor Steve Bannon for guidance on how the Treasury Department would respond to crypto-related questions.

Epstein’s involvement in cryptocurrency came after he was convicted in 2008 for procuring a child for prostitution and soliciting a prostitute, making him a registered sex offender at the time of the Coinbase investment. The newly unsealed records highlight his connections to wealthy investors and the early cryptocurrency world, without alleging any criminal wrongdoing in these deals.

Other high-profile figures appear in the email records, including Michael J. Saylor, Executive Chairman of Strategy, who was mentioned in a 2010 email from Hollywood publicist Peggy Siegal. The email described Saylor attending a charity event after giving a $25,000 donation. The records have caused discussions online about Epstein’s influence in the crypto space.

Also Read: XRP Maxis Blame Bitcoiners for Linking Ripple to Epstein Files

On January 27, PayPal and the National Cryptocurrency Association released a joint study showing that 90% of U.S. merchants would start accepting cryptocurrency payments if the user experience and setup process were as simple as using traditional credit cards. 

This demand comes as nearly four out of ten merchants already accept digital assets, encouraged by high interest from younger shoppers. The report shows a change in the retail landscape, where the main barrier to widespread adoption has shifted from a lack of interest to a need for better technical integration.

The biggest myth about crypto payments? That merchants aren’t interested.

The reality: 90% say they’d try it if the setup matched card payments.

The demand is there.
The unlock is making crypto feel familiar at checkout. @NatCryptoAssoc https://t.co/ds3tzVg6ab

— PayPal (@PayPal) February 2, 2026

Rising enterprise adoption

The survey results challenge the common belief that businesses are reluctant to engage with digital currencies. According to the data, 39% of U.S. merchants have already added crypto at checkout.

Adoption reaches 50% among large companies earning over $500 million annually. For those already involved, crypto is no longer just an experiment; it makes up 26% of total sales for participating merchants.

The shift toward digital assets is a direct response to consumer demand. 88% of businesses report receiving customer inquiries about crypto payment options.

Growth tools for accessibility 

May Zabaneh, Vice President and General Manager of Crypto at PayPal, said crypto payments are moving beyond experimentation and into everyday use.

“Adoption is driven by customer demand for faster, more flexible ways to pay. Once businesses start accepting crypto, they see real value,” Zabaneh said. “When crypto payments feel as familiar as cards or online payments, they become an effective growth tool, helping businesses reach new customers and access funds more quickly.” 

“When crypto payments are offered in ways that feel as familiar as cards or online payments, they become a powerful growth tool, helping businesses reach new customers and access funds more quickly,” she added. Small business owners, such as Nikisha Bailey of Win Win Coffee, agree. They state that having flexibility and choice in payment options helps ensure independent businesses can grow alongside their customers.

Evolving industry utility

Cryptocurrency was once seen as a speculative asset rather than a payment method. However, recent years have shown steady growth in merchant usefulness. The report shows that industries like hospitality and travel are leading with an 81% adoption rate, followed closely by digital goods and luxury retail at 76%.

This is led by Millennials and Gen Z, who have expressed a high level of interest at 77% and 73%, respectively. The main drivers for merchants to facilitate the switch-over are faster speeds and new customer acquisition.

Future market normalization

The study suggests that the next five years will see the rapid normalization of digital assets. 84% of merchants predict that crypto payments will become common by 2031. 

For fintech providers, the focus is now on lowering the barrier to entry. Stu Alderoty, President of the National Cryptocurrency Association, explained that interest in crypto isn’t the issue; understanding it is. Alderoty said, “Too many people still don’t see how crypto fits into their everyday lives.”

“That’s why partnerships with trusted platforms like PayPal are so important. We’re working together to help close the knowledge gap and show how crypto can be simple, accessible, and easy for everyday businesses and consumers,” he stated.

Solving the usability gap

The report concludes that the key to moving from current adoption to a crypto-saturated market is usability. While security features and privacy are important selling points for 41% and 40% of merchants, the “final hurdle” is achieving the same ease as traditional financial systems. 

If payment processors can replicate the simplicity of a credit card swipe for digital tokens, the 90% of merchants currently waiting are likely to begin implementation. This would fundamentally change the standard checkout experience for American consumers.

Also Read: USD1 Overtakes PayPal’s PYUSD as Stablecoin Race Heats Up

Hyperliquid, a decentralized exchange, announced the launch of HIP-4, a new protocol that will allow outcome trading on its platform. The feature will let users trade prediction markets and options-like contracts that are fully collateralized and settle within a fixed range.

HyperCore, Hyperliquid’s main trading engine, will support this new mode to expand activity and offer more trading options. The platform plans to offer a safer option for users who want to avoid risky leverage trading.

The launch is currently in the testnet stage, and live markets will come after testing is done. Additionally, HIP-4 will initially use USDH, Hyperliquid’s native stablecoin, to settle trades. Later, it will allow users to freely create new trading pairs without restrictions.

HyperCore will support outcome trading (HIP-4). Outcomes are fully collateralized contracts that settle within a fixed range. They are a general-purpose primitive that are useful for applications such as prediction markets and bounded options-like instruments. There has been…

— Hyperliquid (@HyperliquidX) February 2, 2026

Details of the HIP-4 contracts

The new contracts in HIP-4 will be dated and allow derivative trading without leverage or liquidations. This design makes it less risky than traditional margin trading markets. The outcome contracts are general-purpose primitives, meaning developers can build prediction markets or other options-like instruments on top of HyperCore. 

Hyperliquid plans to offer permissionless deployment at the end stage, allowing new outcome pairs to be created freely by users.

HIP-4 comes after the success of HIP-3, which allowed the quick creation of markets like silver and gold trading on-chain. HIP-3 became highly active in just days and showed that the platform can support fast-growing markets.

HYPE token up 8% in 24 hours

Hyperliquid’s native token, HYPE, was quick to react to the announcement. At the time of writing, the token is trading for $32.29, up 8% in the last 24 hours. In the past week, the token has gained more than 35%, despite the recent overall market crash.

The recent update would likely increase adoption by attracting both leveraged and non-leveraged traders. The platform has already grown in market depth and even competes with Binance in trading volumes, though recent BTC open interest fell to $1.77 billion, with $4.97 billion in total open interest. 

Even after recent market losses, HIP-3 still has more than $1 billion in open interest and $4.8 billion in trading activity.

Since last week, HIP-3 markets reached new all-time highs of $1B in open interest and $4.8B in 24-hour volume. https://t.co/SdOcpcgDO2

— Hyperliquid (@HyperliquidX) February 2, 2026

Hyperliquid is positioning HIP-4 to capture attention in the prediction markets space, which is currently active on other networks. Once the testing phase is complete, the platform will use objective settlement sources to ensure transparent and reliable outcomes.

Also Read: Hyperliquid Slashes Team Payouts 98% to Protect HYPE Floor

A post shared on X on Monday claimed that U.S. President Donald Trump would sign a major Bitcoin and crypto market bill today at 3:30 PM, releasing $3 trillion in liquidity.

However, official government records, statements from key lawmakers, and the congressional calendar show no such event or executive agenda. The rumors may stem from meeting with banks today.

The White House press briefing room and official websites of sponsoring senators show no indication of a signing ceremony. Moreover, the widely circulated $3 trillion liquidity figure has no credible source and does not appear in any proposed legislation.

🚨 BREAKING:

🇺🇸 PRESIDENT TRUMP IS SET TO SIGN THE BITCOIN & CRYPTO MARKET BILL TODAY AT 3:30 PM.

THE LEGISLATION IS EXPECTED TO UNLOCK OVER $3 TRILLION IN LIQUIDITY, POTENTIALLY FLOWING INTO FINANCIAL MARKETS.

MAJOR CATALYST.

EXTREMELY BULLISH FOR CRYPTO. pic.twitter.com/VTvAXVGQKY

— Mr. Crypto Whale 🐋 (@Mrcryptoxwhale) February 2, 2026

What is Crypto Market Bill?

The Crypto Market Bill is a proposed federal framework that aims to clarify whether digital assets fall under the regulation of the U.S. Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). The bill is intended to provide the legal certainty required for institutional banks and large financial markets to invest in blockchain technology.

Recent legislative progress

The speculation comes after legislative action on a number of bills related to the crypto space, such as the Genius Act and the Clarity Act. Although the Trump administration has been showing a more favorable view toward digital assets compared to previous years, moving a bill from the Senate and House floors to the Oval Office requires a clear series of votes and public disclosures.

None of these steps point to a signing scheduled for today, making the “breaking” claims on social media inconsistent from a current parliamentary procedure standpoint. The fact that rumors like these are being spread around indicates the volatility and sensitivity of the crypto market to social media news. If a bill of this magnitude were to be signed, it would result in a more organized regulatory framework for exchanges. 

Risk of market manipulation

Traders may act on these claims only to suffer losses when the projected event does not happen. Investors should proceed with caution, as misinformation campaigns often target retail investors during times of high market anticipation.

As the industry waits for federal oversight, investors should rely on official government websites and verified news outlets instead of anonymous social media claims. As of this afternoon, no Bitcoin-related legislation has been added to the executive agenda for immediate action.

Also Read: Why Trump is Taking His Own Government to the Court

Shiba Inu (SHIB), one of the well-known meme cryptocurrencies, saw its price fall sharply during the weekend market sell-off after Bitcoin (BTC) dropped below $80,000 for the first time since April 2025.

The market crash caused panic across the market, and SHIB was one of the coins hit the most. Its price fell to $0.00000616, which is the lowest level it has seen since June 2023. After that, it made a small recovery and now trades for $0.0000069, up about 5% from the previous day. Trading volume also fell, sliding about 22% to roughly $167 million in volume in the last 24 hours.

SHIB falls as traders panic sell

The drop came during a period of weak sentiment across the crypto space. In recent months, many traders have closed their positions with meme coins facing heavy selling pressure. In fact, SHIB has lost more than 9.49% over the past seven days.

Liquidations also added to the decline. According to Coinglass, around $196,390 in long positions were wiped out in 24 hours as traders betting on a price going up were forced to sell. Futures trading volume fell 18% to around $221 million, while open interest surged 6% to $76.56 million. In short, there are mixed expectations among traders at the moment.

Burn activity slows sharply

Another major issue has been the slowdown in SHIB’s burn activity. Burning means sending tokens to dead wallets so they are removed from circulation. This is believed to create scarcity for the token, which could drive the price up.

Shibburn, a tracker that monitors the token’s burns, reported that on January 31, zero SHIB was sent to dead wallets, meaning no supply was removed. This was surprising because just two days earlier, the burn rate jumped over 500%. However, the burn rate has increased by 480% in the last 24 hours.

A single transaction alone removed 1,887,367 SHIB tokens, briefly giving investors some hope for stronger deflationary pressure. However, SHIB still has a huge supply. More than 585 trillion tokens are still in circulation, and trillions more are locked in staking.

Another concern is the drop in activity on Shibarium, the layer-2 network linked to Shiba Inu. According to DeFiLlama, Shibarium’s Total Value Locked (TVL) has dropped to about $393,000, the lowest level ever recorded. This is a steep fall from a peak of more than $6 million in December 2024, showing a decline of over 41% in the last 24 hours and about 93% in just over a year.

Lower TVL often points to reduced user activity and less capital flowing through the network.

SHIB taps 2023 support: can it recover?

SHIB is now trading in a price zone that previously acted as support before its rise in late 2023. This is also its lowest support level since 2021. The current price is showing the daily candle rejecting off the support level. 

A solid bullish candle close above the level could spark a rally. Moreover, the 4-hour time frame also displayed multiple rejections, followed by an engulfing candle, suggesting a bullish move. Additionally, the Relative Strength Index (RSI) is currently at 40, while the moving average is at 36. This means the bears are still in control of the market.

In short, Shiba Inu may continue to face bearish pressure if the current price sentiment does not shift to bullish. A break below the current support zone could lead to a downtrend that could be hard to recover from.

Also Read: BitMine Boosts Treasury With 41,000+ ETH as Ethereum Prices Drop

Strategy Inc., a Bitcoin (BTC) treasury firm, announced that it expanded its digital asset treasury by purchasing an additional 855 BTC for about $75.3 million. The acquisition, disclosed on Monday, took place between January 26 and February 1 at an average price of $87,974 per coin.

The purchase was funded through the sale of shares in the company’s at-the-market (ATM) offering program. This maintains Strategy’s position as the largest corporate holder of Bitcoin. The move continues the firm’s strategy despite the recent market drop, where BTC plummeted from its 2025 highs to briefly touch levels below $76,000.

Strategy has acquired 855 BTC for ~$75.3 million at ~$87,974 per bitcoin. As of 2/1/2026, we hodl 713,502 $BTC acquired for ~$54.26 billion at ~$76,052 per bitcoin. $MSTR $STRC https://t.co/tYTGMwPPUF

— Michael Saylor (@saylor) February 2, 2026

The acquisition comes at a time of extreme market volatility. On January 30, Strategy Inc.’s stock experienced an 11% drawdown as Bitcoin fell below the $85,000 level, which shows the correlation between the company’s stock and the asset.

Coin basis update

As of February 1, Strategy Inc.’s total holdings reached 713,502 BTC, which represents an investment of roughly $54.26 billion. The average price comes to $76,052 per BTC. 

In its latest filing, the company reported generating $106.1 million in net proceeds by selling 673,527 shares of its Class A common stock to fund these new purchases.

In addition to common stock sales, Strategy Inc. manages several classes of preferred stock, including its Series A Perpetual Stretch Preferred Stock. The company recently raised the dividend rate for this particular security to 11.25% per year, effective February 1. 

The change suggests the company is encouraging traditional investment to support its ongoing digital asset purchases while still having a significant amount of “available for issuance” capacity across its different types of securities.

Recent purchases 

Strategy Inc. has continued its accumulation of Bitcoin in recent weeks. On January 20, the company surpassed 700,000 BTC in total holdings with a purchase of $2.13 billion. A week later, on January 27, it announced the acquisition of another 2,932 Bitcoin for $264 million. These successive large-scale acquisitions point to a period of heightened activity for the company.

Similarly, OranjeBTC, a Brazil-based Bitcoin treasury company, announced that it has continued its Bitcoin accumulation strategy. The firm has updated its reserves to 3,722.3 BTC, with a portfolio composition of around 43,604 shares per bitcoin.

🇧🇷 Nesta semana, a OranjeBTC retomou a execução de operações estruturadas voltadas à recompra de ações, mantendo disciplina na alocação de capital.

Números atualizados:
• 3.722,3 BTC em reservas
• Ações por Bitcoin: 43.604
• BTC Yield 1T26: 0,11%
• BTC Yield acumulado: 2,50%… pic.twitter.com/OEoVaxzPFF

— OranjeBTC (@ORANJEBTC) February 2, 2026

These numbers make a cumulative BTC yield of 2.50%, with the company posting a Q1 26 yield of 0.11% as of early February. This simultaneous activity shows a general market trend in which Bitcoin-related companies are utilizing the market crash to their advantage, like Strategy Inc. 

Bitcoin price update

At the time of writing, Bitcoin is trading at $77,893, reflecting a decline of approximately 0.43% over 24 hours. The total market capitalization stands at $1.55 trillion, representing a 0.5% decline. The circulating supply remains at 19.98 million BTC out of the total 21 million BTC. 

Strategy Inc. currently owns about 3.4% of the overall Bitcoin supply.

The firm’s filings show it has billions of dollars left for future stock issuances. Specifically, over $8 billion remains in its common stock ATM program, while over $20 billion is available for its 8.00% Series A Perpetual Strike Preferred Stock. This shows that the firm will continue its buying spree despite the price fluctuations in the crypto market.

Also Read: Bitcoin Drops 7%: $1.7B Liquidated as Markets Panic Over Potential Fed Pick

Bitmine Immersion Technologies, Inc., an Ethereum (ETH) treasury firm, purchased 41,788 ETH last week amid the recent price decline. The company now holds around 4,285,125 ETH, worth $10.1 billion at the current price.

This represents roughly 3.55% of the total ETH supply, making Bitmine the largest Ethereum treasury in the world and the second largest crypto treasury overall, after MicroStrategy. 

Additionally, the firm holds 193 Bitcoin (BTC), about $586 million in cash, a $200 million stake in Beast Industries, and a $20 million stake in Eightco Holding, according to an update released on Monday.

The purchase comes as Ethereum faces selling pressure. The price dropped sharply over the weekend, falling below $2,500 and briefly touching $2,187 before bouncing back. Currently, ETH is trading at $2,374, up 3.05% in the last 24 hours but down 17.79% in the last seven days.

Previous Ethereum purchases and rewards

Earlier, on January 21, Bitmine purchased 35,228 ETH, which was after another 24,266 ETH from a week before its annual shareholder meeting on January 15.

The company has also staked 2,897,459 ETH, worth about $6.7 billion, generating annual staking revenue of around $188 million.

Once Bitmine’s Made in America Validator Network (MAVAN) becomes fully operational in early 2026, staking rewards could reach $374 million per year (using 2.81% CESR), which is equal to more than $1 million per day.

“This will be the ‘best-in-class’ solution offering secure staking infrastructure and will be deployed in early calendar 2026. Bitmine is currently working with 3 staking providers as the Company moves towards unveiling MAVAN in 2026,” Lee said.

Bitmine’s stock activity 

Bitmine (BMNR) is currently trading at $23.80, about a 6% drop in the last 24 hours, according to Yahoo Finance. The company said it ranks #105 among all U.S.-listed stocks by average daily trading dollar volume, with around $1.1 billion traded daily over the last five days, which places it ahead of many established companies. 

In its press release, the company highlighted that the changes in U.S. regulation, including the passing of the GENIUS Act and the SEC’s Project Crypto, could help digital assets become more widely used in finance.

Sitting on $6.6 billion in unrealized losses

As of the last week of January, Bitmine’s total holdings were worth about $12.8 billion combined. However, the recent market crash has reduced the value of its Ethereum holding, leaving the firm with an estimated unrealized loss of about $6.6 billion.

🚨New: Tom Lee’s ( @fundstrat ) Ethereum treasury company BitMine ($BMNR) is sitting on about $6.6 billion in unrealized ETH losses, putting it on track to become the fifth largest documented principal trading loss in history if the position is sold. pic.twitter.com/2ELqO5eA0R

— SolanaFloor (@SolanaFloor) February 2, 2026

Chairman Thomas “Tom” Lee mentioned this in the press release, noting, “ETH prices have dropped sharply in the past month from approximately $3,000 to approximately $2,300.” However, he added that Ethereum activity is strong, with 2.5 million daily transactions and 1 million active addresses per day.

Lee said the company believes the cryptocurrency is essential for the future of finance. With MAVAN and its growing treasury, Bitmine is positioning itself as a major player in the crypto and digital finance world.

Also Read: Ethereum To Rollout ERC-8004 On Mainnet To Empower AI Agents

Three powerful forces are connected with each other: foreign money, a Trump-linked crypto venture, and U.S. control over advanced AI technology. Just days before Donald Trump returned to the White House in January 2025, an Abu Dhabi–based investment vehicle quietly made a massive move.

According to WSJ report, entities controlled by Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan—one of the most influential figures in the UAE & the country’s national security adviser—signed a deal to purchase a 49% stake in the Trump family’s cryptocurrency venture, World Liberty Financial (WLF).

The $500 million agreement—which saw $187 million flow directly to Trump family entities—coincided with the UAE’s successful lobbying for access to highly restricted U.S. artificial intelligence chips.

The “Spy Sheikh” and the Half-Billion Dollar Stake

Sheikh Tahnoon, often referred to as the “Spy Sheikh” due to his role as the UAE’s National Security Adviser, oversees a $1.3 trillion empire that includes the AI firm G42 and the investment powerhouse MGX.

Roughly half of the investment was paid immediately, from that upfront payment, approximately $187 million to Trump family-linked entities, with additional millions tied to families of other co-founders.

$31 million was slated for entities tied to Steve Witkoff, Trump’s Middle East envoy and WLF co-founder. Executives tied to the Sheikh’s tech empire took board positions inside the crypto company. Two top executives from Tahnoon’s G42, including CEO Peng Xiao, reportedly joined WLF’s five-person board alongside Eric Trump and Zach Witkoff. In effect, the Emirati-backed group became the largest outside owner of the project.

A “Coup” for UAE: Chips for Crypto?

The timing of the investment has raised significant questions regarding potential conflicts of interest and national security. For years, the U.S. had blocked the UAE’s access to advanced AI chips over fears of technology leakage to China—specifically through Tahnoon’s G42.

Two months after, in March, the WLF deal was signed, Tahnoon met with President Trump and Steve Witkoff at the White House. In May 2025, the Trump administration committed to providing the UAE with 500,000 advanced AI chips annually—enough to build one of the world’s largest AI clusters.

Shortly before the chip deal, WLF CEO Zach Witkoff announced that Tahnoon’s MGX would use WLF’s stablecoin to facilitate a $2 billion investment into the Binance exchange.

“Ridiculous and Un-American”: The Defense

World Liberty Financial and the White House have vehemently denied any wrongdoing or policy influence.

Spokesman David Wachsman defended the investment, stating, “The idea that, when raising capital, a privately held American company should be held to some unique standard that no other similar company would be held is both ridiculous and un-American.”

White House spokespeople emphasized that President Trump’s assets are in a trust managed by his children and that Steve Witkoff has divested from World Liberty Financial to avoid conflicts with his role as envoy.

Sources close to Tahnoon claim the investment was a “business decision” and was never discussed directly with President Trump during the due diligence process.

The deal marks the first known instance of a foreign government official taking a nearly half-ownership stake in a sitting U.S. President’s private company. While the Trump Organization has long courted international real estate deals, the integration of sovereign wealth, national security policy (AI chips), and decentralized finance (WLF) represents a new frontier in political-financial entanglements.

How Power Moves In Modern Economy?

First, large investments in digital assets are no longer just speculative bets — they can shape financial systems, create new forms of money, and influence how countries and companies move capital across borders.

Second, AI chips have become one of the most valuable resources in the world. These chips are essential for building advanced artificial intelligence.

Third, foreign money is now deeply connected to government decision-making. When powerful oversea investors are involved in companies linked to political figures, business decisions and public policy can appear closely intertwined – even if no laws ar broken.

Also Read: Could Kevin Warsh’s Crypto Ties Boost Trump’s Financial Play?

As newly unsealed records released by the U.S. Department of Justice began circulating online, familiar names from politics, finance, and high society once again drew attention in connection with the Jeffrey Epstein case. 

This time, however, online discussion turned toward the crypto sector, after a billionaire linked to digital assets appeared in a decades-old private email included in the DOJ release. 

The reference contains no allegations or criminal claims, but it has been enough to spark curiosity and debate on social media. 

So who is the crypto billionaire whose name has surfaced in the Epstein files? This article looks at the documents and explains who the individual is, and what the records actually show.

Michael J. Saylor, Executive Chairman of Strategy (formerly MicroStrategy) and one of the most visible corporate advocates of Bitcoin, has been referenced in documents released by the United States Department of Justice (DOJ) as part of the latest unsealing of records connected to the late financier Jeffrey Epstein.

The documents, released publicly on January 31, 2026, include a private email dated May 8, 2010. The email was written by Hollywood publicist Peggy Siegal and references a New York charity gala attended by individuals from the film, fashion, finance, and media industries. Michael Saylor is mentioned in relation to a donation made in order to attend the event.

The documents do not make any allegations of criminal wrongdoing against Saylor, nor do they link him to Jeffrey Epstein’s later criminal cases. His mention is limited to a short social interaction described by a third party in private correspondence.

The source of the reference

Saylor’s name appears in a detailed email written by Peggy Siegal, a Hollywood publicist known for arranging high-profile fundraising dinners and managing relationships with wealthy donors and public figures. The email was circulated privately in 2010 and later became part of the materials reviewed and released by U.S. authorities.

In the email, Siegal describes Saylor’s attendance at the event following a $25,000 donation. She wrote: “Michael Saylor giving $25,000 for food and the opportunity to get his name on invite and meet a hip group. Saylor is a complete creep. He has no personality. Sort of like a zombie on a drug.”

She further described her personal experience interacting with him, stating: “I walked him around and he was so weird that even I ran away from him. There is an obvious personal disconnect and I don’t think I can just take his money and deliver a better life because he has no feel for social behavior.”

The remarks in the email represent Siegal’s personal views and social impressions. The correspondence does not include any claims of illegal activity, financial wrongdoing, or behavior connected to Epstein’s criminal actions.

Details of the 2010 charity event

The email refers to a charity gala linked to the Independent Filmmaker Project, hosted at the New York studio of fashion designer Diane von Furstenberg. According to the email, the event was attended by individuals from the entertainment, media, and finance sectors and was organized as a fundraising and networking gathering.

According to the email, Saylor’s involvement was limited to making a donation and attending the event. There is no indication in the released documents that he maintained ongoing contact with Epstein, participated in Epstein’s inner social circle, or engaged in further events tied to Epstein.

No allegations or evidence of wrongdoing

The U.S. Department of Justice (DOJ) has clarified that the unsealed Epstein-related records include a mix of verified documents and uncorroborated third-party statements. The appearance of an individual’s name in the materials does not imply criminal wrongdoing.

In Saylor’s case, the documents contain:

• No allegations of illegal conduct
• No claims of involvement in Epstein’s criminal activity
• No evidence of sustained personal or financial ties to Epstein

Authorities have also confirmed that the Epstein files contain no references to cryptocurrency usage, blockchain transactions, or digital asset wallets associated with Epstein or individuals named in the documents.

Public circulation on X

Following the release of the documents, excerpts from Siegal’s 2010 email circulated widely on X. The material was shared by several high-profile accounts, including the technology-focused account TechFlow (@TechFlowPost).

Online discussion has largely focused on the way the email described Saylor as socially detached, rather than as someone integrated into Epstein’s social network. Many posts pointed to the critical tone of the description to suggest that Saylor did not become part of the elite social circles linked to Epstein at that time.

While opinions online have differed, the underlying source material reflects only a short and unproductive social encounter, as characterized by Siegal.

Contrast with Saylor’s present-day profile

More than a decade after the 2010 event, Michael Saylor is best known for his singular focus on Bitcoin rather than elite social networking.

Under his leadership, Strategy, earlier operating as MicroStrategy Incorporated (MSTR), has accumulated over 700,000 bitcoin (BTC), making it the largest publicly traded corporate holder of the digital asset. 

In public interviews, conference appearances, and posts shared on X, Michael Saylor has described Bitcoin as “digital property,” “a superior form of capital,” and “the apex monetary asset.” 

He has repeatedly spoken about Bitcoin in the context of monetary theory, technology, and capital preservation, and has publicly positioned it as a long-term treasury reserve asset.

Following the release of the Epstein-related documents, online attention has focused on the contrast between how Saylor was portrayed in Peggy Siegal’s 2010 email and his public-facing image today. This contrast has been widely discussed across posts and commentary on X. 

In several public forums, Saylor has stated that he has “no interest in social status games” and that his focus remains on “long-duration capital preservation through Bitcoin.”

The crypto context and what the documents indicate based on public information

Saylor’s name appearing in the Epstein-related files has coincided with his prominence in the global cryptocurrency space. He currently serves as Executive Chairman of Strategy and is frequently referenced in online discussions for his publicly stated views on institutional Bitcoin adoption, corporate treasury allocation, and long-term holding strategies, based on statements he has made publicly over time.

In multiple publicly available statements, Saylor has said that Bitcoin is “not a trade,” “not a hedge,” but “a strategy,” describing it as a long-term balance sheet asset rather than a short-term speculative instrument.

What the documents ultimately establish

The Epstein-related records demonstrate that Epstein maintained contact, direct or indirect, with a wide range of influential figures across finance, technology, politics, and entertainment.

In Michael Saylor’s case, the documentation is limited to a single email describing a one-time social encounter at a charity event. The records show no evidence of continued association, collaboration, or personal relationship beyond that setting.

As with other names appearing in the unsealed materials, Saylor’s inclusion reflects proximity, not implication. The documents provide historical context without making claims or conclusions about wrongdoing.

Also Read: Could Kevin Warsh’s Crypto Ties Boost Trump’s Financial Play?

The blockchain-based enterprise solution provider, Ripple, has secured full approval for its Electronic Money Institution (EMI) license in Luxembourg. The Commission de Surveillance du Secteur Financier (CSSF) granted Ripple complete authorization after the company fulfilled all regulatory conditions. 

This approval comes just weeks after Ripple received preliminary approval. With the approval, Ripple now has a stronger presence in Europe’s financial landscape. The full EMI license allows it to offer fully regulated payment services and issue electronic money across the European Union. 

Cassie Craddock, Managing Director for UK & Europe at Ripple, said, “Securing our full EMI license in the EU is a transformative milestone that reinforces Ripple’s presence at the heart of European finance.”

She added that this approval lets Ripple expand its blockchain services across Europe more effectively. As a result, Ripple can make digital payments faster and help traditional businesses adopt blockchain technology more easily.

Expansion across Europe and global licensing

Ripple’s new EU license adds to its growing regulatory progress. Last month, its UK branch was approved as an authorized Electronic Money Institution and crypto firm under the FCA’s anti-money laundering rules. This means Ripple can issue e-money and run regulated payment services across the UK. Moreover, it lets Ripple Payments, the company’s platform for cross-border transfers, grow in Europe, making international payments faster and more transparent for banks and payment providers.

Around the world, Ripple now has more than 75 regulatory licenses, making it one of the most heavily licensed crypto companies. Very few competitors have this level of approval. These licenses let Ripple grow its services for businesses while staying fully compliant with regulations. They also give banks and other institutions more confidence to use Ripple’s blockchain technology to modernize older financial systems.

Regulatory context and compliance requirements

In Luxembourg, a company has to be authorized by the CSSF if it wants to provide payment services or issue electronic money. Ripple has just obtained a new license, which means it complies with all the requirements of the Payment Services Law. 

Although some payment services are exempt from some of the requirements, the license obtained by Ripple proves that it complies with all the reporting requirements. With a license in the EU and another in the UK, Ripple can now operate in Europe.

In the past, Ripple has had issues with regulators, such as a long legal case with the US Securities and Exchange Commission. The case involved disagreements over the sale of XRP until both parties agreed to drop their appeals in August 2025. In 2023, a court ruled in favor of Ripple, with Judge Torres stating that XRP is not a security when sold to the public. This gives the company more credibility in Europe and across the world, thanks to its licenses.

Following the approval, Ripples’ native token XRP’s current price sits at $1.62, with a 24-hour trading volume exceeding $5.48 billion as per CoinMarketCap. This reflects ongoing market engagement despite a minor 1% dip.

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

Ethereum co-founder Vitalik Buterin is pushing a radical shift in on-chain governance that could redefine decentralized decision-making. In a detailed post on X, he outlined a two-layer approach designed to combine accountability with pluralistic preference-setting. 

Vitalik was replying to an X post by MilliΞ who said Vitalik’s creator platform idea may look complex, but it points in the right direction. He argued that social platforms favor popularity over quality, creating an opportunity for alternative systems that reward meaningful content creation instead.

I actually don't think it's complicated.

IMO the future of onchain mechanism design is mostly going to fit into one pattern:

[something that looks like a prediction market] -> [something that looks like a capture-resistant, non-financialized preference-setting gadget]

In other… https://t.co/VutSyEI8Fd

— vitalik.eth (@VitalikButerin) February 2, 2026

According to Buterin, current DAO setups don’t really solve political or social coordination issues and often let big token holders call the shots. His idea is a two-layer system: one layer works like a prediction market to keep people accountable, while the second layer protects different opinions and personal motivation.

He suggests that the first layer needs to be fully open, where everyone is allowed to join, winning or losing money based on their decisions. This ensures that the system is transparent and accountable. For the second layer, diversity and anonymity are important, reducing the influence of token holders and the risks of collusion.

“Votes here should be anonymous, ideally MACI’d to reduce risk of collusion,” he wrote. He emphasized that this system separates execution from preference-setting, creating a clearer, more resilient governance structure.

Rethinking DAOs

Buterin’s post comes at a time when many people are frustrated with token-based DAOs. However, nowadays most of these DAOs behave like a shared wallet in which a few large holders are in control. Therefore, they do not really live up to the original concept of a DAO. This concept is about collective decision-making for better resource management.

He said, “We need DAOs,” stressing that improved versions are essential for Ethereum’s future. Buterin believes new DAOs should focus on practical tools like oracles, dispute resolution, and managing shared resources, instead of relying on broad token-based voting.

Oracles, for instance, give important real-world data to DeFi apps, stablecoins, and prediction markets. Buterin warned, “Fundamentally, a token-based oracle cannot have a cost of attack higher than its market cap.” He also pointed out that DAOs can help keep long-term projects running, even after the original teams move on. Moreover, DAOs could make it easier to fund short-term projects quickly and help resolve disputes in complex areas like insurance.

Also Read: DAOs Wanted to Kill Corporations—Now They’re Killing Themselves

Privacy, security, and long-term goals

Buterin’s ideas fit with his bigger focus on privacy and giving users more control. He recently withdrew 16,384 ETH to support secure and verifiable technology, emphasizing that Ethereum should put people first instead of chasing corporate-style growth. “Ethereum everywhere is nice, but the primary priority is Ethereum for people who need it,” he wrote. He also urges developers to concentrate on privacy, resisting censorship, and keeping systems open, rather than chasing quick growth.

Ethereum has also made significant technical advancements in 2025, such as zkEVMs and PeerDAS, making it faster and more efficient. According to Buterin, this has paved the way for more intelligent systems of governance. Zero-knowledge principles, with artificial intelligence-based filters and convex models of governance, will result in stronger and more inclusive DAOs.

Industry comparisons

Some industry observers, like SasuRobert, note similarities between Buterin’s proposals and MultiversX’s existing architecture. Multi-layer staking, adaptive sharding, and distributed validators already implement features like secure randomness and near-instant finality. 

When reading this, I am quite happy. Most of the proposals from Vitalik’s post is similar if not exactly the same as we have already implemented on the #MultiversX chain.

Multi-layer staking/delegation is built directly on-chain. Distributed Validators do exist, built by… https://t.co/GYgO5et9X8

— Robert Sasu | dev/acc (@SasuRobert) December 29, 2023

SasuRobert said, “Now, when you see adaptive sharding, increasing/growing validators as the demand increases, it means everyone will have a place to stake/delegate/validate.” This suggests Ethereum’s future governance model could align with existing innovations in other chains.

Also Read: Latest Crypto Crash is Liquidity Squeeze, Not Fundamentals: Raoul Pal

Solana-based decentralized exchange aggregator Jupiter is making a strategic push beyond token swaps and positioning itself as a central hub for prediction markets through a new integration with Polymarket.

Jupiter announced in a post on X that it has integrated the world’s largest decentralized prediction market, Polymarket, directly into its platform, launching a built-in “Prediction” feature with the Jupiter app. The update allows users to trade polymarkets event based contracts directly with Jupiter, marking a significant step in expanding Solana’s DeFi use cases beyond traditional spot trading.

For the first time, @Polymarket is coming to Solana. On Jupiter.

Integrating Polymarket is primed for making Jupiter the most innovative predictions platform on Solana

Trade all the markets you want. On one onchain platform.

The best user-experience on Solana 🤝

The biggest… pic.twitter.com/lSpxZ93SaK

— Jupiter (@JupiterExchange) February 1, 2026

“Integrating Polymarket is primed for making Jupiter the most innovative predictions platform on Solana,” the exchange said by highlighting its ambition to become a one-stop destination for onchain trading and event-based prediction markets.  

Jupiter expands beyond swaps

The move signals a broader shift in Jupiter’s strategy. Long known as Solana’s leading DEX aggregator jupiter is now developing into multi-product DeFi platforms, blending liquidity aggregation with emerging financial primitives like prediction markets.

The integration removes the need for stablecoin bridging or switching between multiple apps, streamlining the user experience.

This approach positions Jupiter as a gateway for users looking to speculate on real-world outcomes using blockchain-based markets without difficulty. Jupiter co-founder Meow revealed that “Jupiter Predict” will be a core focus for 2026, with plans to launch robust prediction market APIs and advanced market discovery tools.

Golden Age of Prediction Market

The partnership comes as prediction markets enter a “golden age” of volume and mainstream adoption. In January 2026 alone, Polymarket recorded $7.66 billion in trading volume, while its rival Kalshi saw $9.16 billion.

This momentum is being mirrored across the industry:

• Coinbase recently rolled out Kalshi-powered prediction markets to users in all 50 U.S. states.
• Polymarket secured an exclusive, multi-year sports licensing agreement with Major League Soccer (MLS) last month.

With a Total Value Locked (TVL) of approximately $2.35 billion and annualized protocol revenue nearing $150 million, Jupiter is leveraging its massive footprint to turn prediction markets into a core pillar of the Solana DeFi ecosystem.

Solana’s role in event-based trading

The integration also underscores Solana’s growing appeal for high-frequency and event-driven markets. With low transition fees and fast settlement time, the network offers a technical advantage for prediction markets that require rapid price updates and frequent traders. 

Jupiter’s Polymarket integration highlights how DeFi native platforms are racing to capture the expanding sector. Last week, The Crypto Times highlighted the growing regulatory uncertainty surrounding U.S. prediction markets. The CFTC is resetting its regulatory to prediction markets, aiming to create clearer federal rules for Polymarket and Kalshi platforms as the sector rapidly grows. 

The move comes amid rising legal clashes with states, increased trading volumes, and growing scrutiny from regulators and lawmakers as prediction markets expand into mainstream finance.   

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

Bitcoin fell sharply to $75,000 range on February 2, 2026, triggering one of the largest single-day losses in the past few years. The sharp decline erased over 10% from recent highs, pushing the asset below $80,000 for the first time since April 2025. 

As of writing, according to CoinMarketCap, the price of Bitcoin is trading at $75,413.39, with a volume of $65.9 billion in 24 hours. This has led to a sudden fall in the market wiping out $510 billion in just a week. Altcoins took even bigger hits, as many leveraged traders betting on Bitcoin’s rise were forced to sell. 

The fall in Bitcoin price follows another country-wide shutdown in the U.S. while the crypto failed to hold its support level of $82,500. Once it slipped through that level, BTC started to fall through the thin liquidity zones quickly. 

Massive liquidations hit crypto markets

As per the Coinglass data, there have been almost $800 million in liquidations in 24 hours, adding to the collective liquidations nearing $3 billion in the past three days. 

In the past 24 hours, Ethereum was at the forefront of liquidations with $293.6 million wiped out from ETH leverage markets, followed by Bitcoin with $267 million. Other altcoins like Solana, XRP, DOGE and various other also experienced the same fate. 

Altcoins and broader market trends

Other major cryptocurrencies also moved noticeably. CoinMarketCap data shows Ethereum trading at $2,222.61, up slightly by 1.6% in the short term but down 20% over the past week. 

Binance Coin (BNB) trades at $747.44, XRP at $1.58, and Solana (SOL) at $100.60, all of which have fallen in double digits from their January highs. 

The total crypto market cap plunged from $3.05 trillion to $2.54 trillion in just a week, highlighting the scale of the sell-off. As of now, the market sits at $2.57 trillion, down 3% in a single day, while daily trading activity has dropped nearly 9% to $174 billion. Investor fear is running high, with the Fear and Greed Index hitting just 15, signaling extreme caution across the market.

The short-term chart also shows Bitcoin firmly under pressure. According to TradingView data on the 4-hour chart, the price slid from the mid-$90,000s to the mid-$70,000s, confirming a bearish trend. 

Bollinger Bands are expanding downward, indicating rising volatility, while RSI is deep in oversold territory below 30. For context, Bollinger Bands show how much a price is moving up or down, while RSI signals if an asset is overbought or oversold.

It is worth noting that key catalysts for the crash include the partial U.S. government shutdown, trade-war headlines, rising long-dated Japanese government bond yields, and geopolitical tensions, including the ongoing war in Iran and brewing friction in the South China Sea.

Market Leaders Weigh In

Plan C, a crypto analyst on X, noted, “$75,000–$80,000 is a 37% to 40% correction. This could be the deepest pullback in this Bitcoin bull run.” The analyst, however, noted that 35%-40% corrections are historically not unheard of for a Bitcoin bull run. 

$75,000–$80,000 is a 37% to 40% correction.

Decent chance this will be the deepest pullback opportunity this Bitcoin bull run.

This is my personal opinion, not financial advice.

— Plan C (@TheRealPlanC) January 31, 2026

He also noted that the Binance ‘glitch’ black swan, occurred on October 10, “brought us down much lower than we would have gone otherwise.”

In one of his recent analyses, Raoul Pal, the founder and CEO of Global Macro Investor (GMI), explained that this crash has nothing to do with fundamentals but it’s a pure ‘liquidity squeeze.’ “That factor is that US liquidity has been held back due to the 2 shutdowns and issues with US plumbing,” Pal notes. 

Bitcoin’s recent drop shows how risky the market can be when people borrow to trade. Short-term traders face big losses, but those holding for the long run are distant to such serious danger. For patient investors, this dip could even be a chance to buy at lower prices. 

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

The global cryptocurrency market shed nearly $300 billion in total market capitalization over the weekend, amid a broader market crash. This multi-billion-dollar vanish has triggered fresh debate over whether the downturn signals deeper structural problems in digital assets. 

However, Raoul Pal, founder and CEO of Global Macro Investor (GMI), argues the sell-off has little to do with crypto fundamentals and more to do with a temporary shortage of U.S. dollar liquidity. 

In a post shared on X on Sunday, Pal pushed back against what he described as a growing narrative that “Bitcoin and crypto are broken” and that the market cycle has ended. 

https://t.co/M5mLAi3XLA

— Raoul Pal (@RaoulGMI) February 1, 2026

According to Pal, recent price action points to a broader macro-driven issue rather than a sector-specific failure. 

Bitcoin and SaaS stocks move together

Pal highlighted a key observation: Bitcoin and Software-as-a-Service (SaaS) stocks have been falling almost in lockstep. This is notable because the two asset classes are fundamentally different, yet both are considered “long-duration assets,” as their valuations depend heavily on future growth expectations.

“What I found destroyed both the BTC narrative and the SaaS narrative,” Pal said. “SaaS and BTC are the exact same chart.”

Bitcoin recently dropped toward the mid-$75,000 range, while several high-growth technology stocks also saw sharp declines. Pal argued that when unrelated assets fall together, it often signals a common macro driver, rather than isolated problems within each market. 

Liquidity drain, not crypto-specific stress

According to Pal, the main pressure point has been U.S. liquidity tightening, worsened by repeated government shutdowns and structural issues in the Treasury market. He pointed to the depletion of the Federal Reserve’s Reverse Repo Facility (RRP), a place where institutions park excess cash overnight, as a key factor. 

In earlier years, when the U.S. Treasury rebuilt its Treasury General Account (TGA), liquidity drains were offset by money flowing out of the RRP. That buffer is now largely gone.

“With no offset available, TGA rebuilds have become pure liquidity drains,” Pal explained.

He also said that a strong rally in gold absorbed much of the remaining marginal liquidity, leaving riskier assets like crypto and growth stocks more exposed.

Fed leadership concerns and market reaction

Some market participants have linked the crypto decline to speculation around Kevin Warsh, reportedly under consideration for a senior Federal Reserve role. Jeff Mei, chief operating officer at crypto exchange BTSE, said investors fear Warsh could maintain a tougher stance on inflation and rate cuts.

Pal rejected that view, calling it a “false narrative.” He argued that Warsh is more likely to follow a Greenspan-era approach, allowing the economy to run hot while relying on productivity gains, particularly from artificial intelligence, to manage inflation.

“Warsh will cut rates and do nothing else,” Pal said, adding that broader liquidity decisions would likely be driven through fiscal and banking channels.

Why this matters for markets

The episode highlights how macro liquidity conditions continue to dominate crypto price action, even as the industry matures. Similar liquidity-driven sell-offs occurred in 2022, when aggressive Federal Reserve tightening triggered sharp declines across both digital assets and technology stocks.

Pal believes the current liquidity headwinds are temporary and expects conditions to improve once the latest U.S. government shutdown is resolved. However, he acknowledged that timing remains uncertain and volatility may persist. “Often in these cycles, time matters more than price,” he said.

For now, the market downturn appears less about crypto’s long-term viability and more about short-term liquidity stress, reinforcing the growing link between digital assets and global macroeconomic forces.

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

Nomura, Japan’s largest wealth manager, is tightening its crypto exposure after its European trading arm faced losses in the third quarter of 2025. The firm manages around ¥153 trillion in client assets and holds 15% of the domestic wealth management market.  

According to Bloomberg Japan, Nomura’s Chief Financial Officer Hiroyuki Moriuchi confirmed the company “reduced its positions in cryptocurrencies” to curb short-term volatility in profits. Despite this, the firm emphasizes its long-term commitment to digital assets and plans to expand crypto operations gradually.

The risk reduction affects Nomura’s Europe-based crypto subsidiary, Laser Digital Holdings, which handles trading and custody services. “We have tightened our management of positions, as well as risk exposure,” Moriuchi said, noting that the move balances caution with growth ambitions. 

Nomura launched Laser Digital in Switzerland in September 2022 to focus on cryptocurrency trading and venture capital. The arm reportedly lost around ¥10.6 billion (approximately $70–75 million) in Q3 2025.

Reducing risk amid volatility

Nomura is cutting back on crypto as markets swing wildly. Japanese companies have long been eager to invest in Bitcoin and other digital assets, but the recent turmoil in the market shows how risky it all can be. 

By scaling back, Nomura is playing it safe while still keeping room to grow in the future. Besides protecting itself from big losses, the move also helps the firm follow new rules and keep client funds safer during sudden market swings. 

Laser Digital has also applied for a U.S. federal banking license, which would let it provide crypto custody and trading services across the country. This shows that Nomura wants to grow carefully, expanding its reach while keeping risks in check. With the license, the firm can attract U.S. clients and still maintain strict control over its operations. 

Broader market drawdown

Nomura’s decision likely follows the broader market drawdown in November-December 2025. After Bitcoin and the trading activity within crypto markets hit new highs in October, it largely remained below the mark in the last two months of the year.

At the time of publishing, Bitcoin price is trading near $76,510—down 40% from its all-time high of $126,198, marked on October 27, 2025. The total crypto market capitalization has also recently declined by nearly $1.5 trillion from its high, proving that Nomura’s decision to cut its crypto exposure turned out to be a prudent move.

Regulatory shifts in Japan

Nomura’s decision comes as Japan plans new rules for crypto. The country’s Financial Services Agency (FSA) wants to make trading safer and tighten oversight. Under the proposals, exchanges would have to use systems from approved custodians, closing loopholes. 

So far, many third-party providers aren’t closely regulated. The changes will make sure exchanges stay responsible, even when they outsource key services. That’s why risk management, like Nomura’s, is becoming more important. 

Also Read: Union Budget 2026: Still No Relief for India’s 90M Crypto Investors

Cross-chain crypto protocol CrossCurve has confirmed that its bridge was exploited in a smart contract attack, resulting in the loss of approximately $3 million across multiple blockchain networks. 

The incident, disclosed late Sunday, once again underscores the persistent security risks surrounding cross-chain bridges, one of the most vulnerable components in decentralized finance (DeFi).

CrossCurve announced on X that its bridge was “under attack,” citing the exploitation of a vulnerability in one of the smart contracts used for cross-chain operations. The protocol immediately urged users to suspend all interactions as the team works on the breach. 

⚠️ URGENT Security Notice

Dear users,

Our bridge is currently under attack, involving the exploitation of a vulnerability in one of the smart contracts used.

Please pause all interactions with CrossCurve while the investigation is ongoing.

We appreciate your patience and… pic.twitter.com/yfo1KvWoDd

— CrossCurve (@crosscurvefi) February 1, 2026

Blockchain security analysts later confirmed that the exploit allowed attackers to bypass critical validation checks and unlock tokens without proper authorization. 

What happened and how the attack worked

According to Defimon Alerts, shared by blockchain security company Decurity, the attacker used a vulnerability that enabled anybody to spoof a cross-chain message. 

The vulnerability existed in a smart contract linked to CrossCurve’s Axelar-based receiver system. The attacker reportedly called a function called expressExecute on the ReceiverAxelar contract with a forged message.

This bypassed gateway validation and triggered token unlocks on the PortalV2 contract. As a result, assets were released without backing, allowing the attacker to drain funds across several networks.

Defimon Alerts estimated total losses at around $3 million, though the final figure may change as investigations continue. At the time of writing, CrossCurve has not released a complete breakdown of affected assets or chains.

CrossCurve @crosscurvefi (ex https://t.co/4HJ33uOZUS) has been exploited for around 3 million on several networks.

Anyone could call expressExecute on ReceiverAxelar contract with a spoofed cross-chain message, bypassing gateway validation and triggering unlock on PortalV2.… pic.twitter.com/EfYe3Tfo9v

— Defimon Alerts (@DefimonAlerts) February 1, 2026

Response from CrossCurve and Curve Finance

In an effort to recover the stolen funds, CrossCurve CEO Boris Povar publicly shared 10 wallet addresses believed to have received assets from the exploit. He offered a bounty of up to 10% if the funds are returned within 72 hours, a practice commonly referred to as a “white hat” reward.

According to Povar, in case of no contact within the given time frame, CrossCurve will consider the incident as malicious and seek legal alternatives. These include working with law enforcement, filing civil lawsuits, and coordinating with other crypto projects to freeze funds where possible.

Curve Finance that has collaborated with CrossCurve also released a statement that urged users who had invested their votes in CrossCurve pools to reevaluate their hold. The Curve team insisted on the need to be risk-conscious in making decisions when dealing with third-party protocols.

In light of the recent security incident involving https://t.co/3Wv3pEhCu8 (== CrossCurve):

Users who have allocated votes to Eywa-related pools may wish to review their positions and consider removing those votes. We continue to encourage all participants to remain vigilant and… https://t.co/chd5YBOXhr

— Curve Finance (@CurveFinance) February 1, 2026

Why this matters for the crypto industry

Cross-chain bridges have long been a major attack surface in crypto. Over the past few years, bridge exploits have accounted for billions of dollars in losses. 

High-profile incidents include the Ronin Bridge hack, the Wormhole exploit, and the Nomad bridge failure, all of which involved flaws in message verification or validation logic.

The CrossCurve incident is another case of a well-known pattern of a small error in validation code resulting in a massive loss of assets within a few days. Such incidents still bring questions to regulators, investors and developers regarding security assumptions of cross-chain systems.

Related security trends and recent attacks

The broader threat landscape is also evolving. In a recent case, cybersecurity researchers at ReversingLabs uncovered malware hidden inside Ethereum smart contracts.

The hackers exploited the Node Package Manager (NPM) with counterfeit JavaScript packages to covertly extract malicious commands out of the blockchain to enable malware to bypass the usual security checks.

Collectively, these events indicate that attackers are becoming more likely to take advantage of the trust and transparency of blockchain infrastructure itself, and not necessarily by using overtly malicious activity.

How users can stay safe

To the users, the CrossCurve exploit is yet another reminder that there is real risk to interacting with DeFi protocols. Security experts suggest not using new bridges or those with a low audit, exposure to cross-chain products, and keeping a close eye on the announcements of protocols. 

Possible losses can also be minimized by using hardware wallets, not signing blind contracts, and diversifying assets in platforms.

As investigations into the CrossCurve exploit continue, the incident reinforces a central reality of decentralized finance: innovation often moves faster than security, and users remain the final line of defense.

Also Read: Makina Finance Hacked: MEV Bot Snipes 1,299 ETH in $4M Protocol Exploit

Crypto markets moved through a week driven mainly by policy decisions and institutional activity rather than price action. Regulators across regions continued to clarify how digital assets will be treated, with Japan signalling a shift toward crypto ETFs and India keeping its existing tax regime unchanged. 

Developments in U.S. politics, corporate treasury moves, and blockchain infrastructure also influenced sentiment during the week.

Below is a recap of the developments that mattered most.

Top Headlines

The week’s biggest developments reflected how policy decisions, regulatory signals, and institutional positioning continue to shape crypto markets, even as price action remained relatively muted.

Trump picks Kevin Warsh for Fed Role, stirring market debate

U.S. President Donald Trump’s backing of Kevin Warsh for a senior Federal Reserve role brought monetary policy back into focus. Warsh, a former Fed governor, has long criticised extended quantitative easing and has raised concerns about the side effects of aggressive central bank intervention.

The development drew attention across financial markets, including crypto. Market participants pointed to Warsh’s views on inflation control, balance sheet management, and asset valuations as factors that could influence liquidity conditions. Any move toward tighter policy is seen as relevant for Bitcoin and other risk assets, especially as institutional participation remains closely linked to macro policy signals.

Tether posts $10B profit as U.S. treasury holdings hit record $141B

Tether reported over $10 billion in profit for 2025, with reserve assets growing to nearly $193 billion. Its U.S. Treasury holdings hit a record $141 billion, making it one of the largest private holders of government debt. The stablecoin now serves more than 530 million users, underlining its dominance as a key liquidity provider in crypto markets.

Japan lays out crypto ETF roadmap for 2028

Japan indicated a possible shift in its approach to digital assets after reports suggested crypto exchange-traded funds (ETFs) could be allowed by 2028. While regulators have not announced any immediate approvals, discussions are reportedly underway to bring Japan’s framework closer to global standards.

The move stands out for a market that has traditionally taken a cautious stance following earlier exchange failures. If implemented, crypto ETFs could allow greater participation from institutional investors, including asset managers and pension-linked funds, though the proposed timeline points to a gradual rollout.

Union Budget 2026 leaves India’s crypto policy unchanged

India’s Union Budget 2026 did not introduce any changes to crypto taxation or regulation. The government retained the 30% tax on crypto gains and the 1% TDS on transactions, with no reference to licensing, classification, or oversight.

For India’s estimated 90 million crypto users, the outcome reinforced concerns around prolonged uncertainty. Industry participants said the lack of movement continues to limit domestic participation and innovation, while encouraging startups, traders, and capital to move offshore.

Strategy Inc. and Bitmine extend corporate accumulation

Corporate accumulation remained active during the week. Strategy Inc. disclosed the purchase of 2,932 Bitcoin for $264 million, bringing its total holdings to 712,647 BTC. The company continues to expand its Bitcoin treasury through periodic purchases.

Bitmine disclosed this week that its Ethereum holdings have climbed to 4.2 million ETH, with a total valuation of about $12.8 billion. The update places the company among the largest known corporate holders of Ether. The disclosure also reinforces the steady interest from institutions treating Ethereum as a long-term balance sheet asset rather than a short-term trade.

Ethereum prepares ERC-8004 mainnet rollout

Ethereum developers confirmed that ERC-8004 is scheduled to go live on the mainnet. The new standard is intended to support AI-driven agents that interact directly with smart contracts and manage assets on-chain.

According to developers, ERC-8004 is aimed at simplifying automated contract interactions across decentralized applications. While usage is still expected to be limited in the early stages, the rollout reflects continued development work linking artificial intelligence tools with Ethereum’s existing infrastructure.

Hyperliquid leads liquidity rankings

Hyperliquid topped global crypto liquidity rankings during the week, moving ahead of several centralized exchanges in reported market depth. The data showed increased activity on the decentralized derivatives platform, pointing to growing trader participation outside traditional centralized venues.

Following the rankings, Hyperliquid’s HYPE token rose about 20%, reflecting increased activity on the platform.

News you might have missed

• Winter Storm Frenan caused a 60% drop in Foundry USA’s mining hashrate as operations were temporarily halted.
• Fake Clawdbot tokens surged amid online speculation before being flagged as scams; the Moltbot founder said he would “never do a coin.”
• Binance shifted $1 billion from its SAFU fund into Bitcoin, adjusting its user protection reserves.
• The U.S. government built cash reserves ahead of a possible shutdown as Trump initiated legal action against his administration.
• The SEC reiterated that tokenized securities fall under the same rules as traditional assets.
• OFAC sanctioned UK-based crypto exchanges over alleged Iran-linked activity.
• The Czech central bank governor reaffirmed support for a Bitcoin pilot.
• Justin Sun claimed trillions could move to Tron in 2026.
• OKX’s CEO criticized Binance over responsibility for the October market crash.
• Silver gained 100% in 50 days, while gold prices declined sharply.
• The U.S. DOJ forfeited $400 million tied to a major cryptocurrency mixer.

What to expect next week

Market sentiment is expected to stay closely tied to macro and political developments, especially around Federal Reserve leadership and ongoing fiscal uncertainty in the U.S. Ethereum developers will be watching the rollout of ERC-8004, while markets across Asia look for more clarity on Japan’s ETF plans. In India, focus remains on whether any regulatory direction emerges following the Union Budget 2026.

Union Budget 2026 has once again passed without any reference to cryptocurrency, extending India’s long-standing silence on crypto regulation. There was no mention of digital assets, no indication of a regulatory framework, and no change to the existing tax structure introduced in 2022.

The 30% tax on crypto gains and the 1% TDS on every transaction continue for the fourth straight year. Since their introduction, these measures were expected to act as interim steps until clearer rules were put in place. Budget 2026 indicates that this transition has yet to occur.

Crypto remains taxed, but not recognised.

Four years since the crypto tax, still no policy framework

When crypto taxation was announced in 2022, the government indicated that regulation would follow. That framework is still missing.

Budget 2026 does not explain how crypto is treated under Indian law. It is still unclear whether it is considered an asset, a security, or a speculative instrument. The budget also does not mention investor protection, exchange licensing, or the place of crypto in the wider financial system.

This continued silence reinforces the impression that crypto is being treated more like gambling than as a financial or technology-based asset.

Industry Reactions

Reacting to the Union Budget 2026, Edul Patel, CEO of Mudrex, said the decision to retain the existing tax framework brings continuity but falls short of industry expectations.

“The Union Budget’s decision to maintain the existing taxation framework for Virtual Digital Assets provides continuity, but the industry was hoping for calibrated reforms to improve market participation and onshore liquidity.”

He added that despite regulatory and tax hurdles, the sector continues to expand, and targeted reforms could have strengthened India’s global position.

“While the sector continues to grow despite regulatory and tax challenges, the rationalisation of transaction taxes and enabling loss offsets would have further strengthened India’s competitiveness in the global digital asset economy.”

Patel noted that the industry remains hopeful that ongoing engagement with policymakers will lead to a more supportive environment.

“We remain optimistic that continued dialogue between industry and policymakers will help shape a more growth-oriented framework going forward.”

— Edul Patel, CEO, Mudrex

Meanwhile, Ashish Singhal, Co-founder of CoinSwitch, welcomed the introduction of explicit penalty provisions, calling them a step forward for compliance in the crypto ecosystem.

“The introduction of specific penalty provisions is a positive milestone for the crypto industry. By mandating a ₹200 daily penalty for reporting delays and a ₹50,000 fine for inaccuracies, the Government has formalized high standards of tax compliance and reporting for both users and VASPs.”

He said these measures validate the compliance-first approach followed by Indian platforms.

“This validates the ‘Compliance-First’ model of Indian platforms like CoinSwitch, shielding users from reporting risks and aligning with compliance goals.”

However, Singhal cautioned that compliance alone would not be enough to drive sustainable growth in the sector.

“While compliance and surveillance have tightened, true growth requires economic rationalization to keep Web3 innovation and talent within India.”

He pointed to existing tax provisions as barriers to genuine participation.

“The 1% TDS, lack of offset of losses and the 30% flat capital gains rate create an asymmetric environment for genuine participation.”

According to Singhal, such measures could push users toward offshore platforms.

“These measures risk driving Indian capital toward non-compliant offshore platforms, leaving users vulnerable to legal and financial scrutiny.”

He reiterated CoinSwitch’s commitment to working with policymakers on reforms.

“CoinSwitch remains fully committed and we will continue to work with the Government towards a balanced, user-first tax regime that pairs robust oversight with economic viability.”

— Ashish Singhal, Co-founder, CoinSwitch

In a separate remark, Edul Patel said the proposed penalties signal a broader policy push towards transparency and accountability.

“The proposed penalties for non-disclosure and misreporting of crypto assets reflect a broader policy shift towards strengthening compliance and transparency in India’s digital asset ecosystem, building on the recently updated FIU-IND guidelines for exchanges.”

He added that clearer accountability helps align crypto with mainstream financial standards.

“By creating clearer accountability, these measures bring crypto transactions closer to mainstream financial reporting standards.”

Patel concluded that long-term growth would depend on trust and regulatory clarity.

— Edul Patel, CEO, Mudrex

“Long-term growth in the sector depends not only on innovation, but also on trust, consistency, and regulatory clarity, and measures like these move the industry in the right direction.”

Commenting on the Budget, SB Seker, Head of APAC at Binance, said the Union Budget 2026:

“reiterates India’s focus on building the foundations of a Viksit Bharat, with continued emphasis on digital public infrastructure such as AI, data centres, and cloud-led growth.

“From a digital assets perspective, the Budget maintains the existing taxation framework. At the same time, it underlines the need for a more forward-looking tax approach that evolves with market maturity, technological convergence, and India’s broader digital ambitions.

“Globally, governments are moving towards clearer and more calibrated tax and compliance frameworks for digital assets. Binance believes that globally aligned tax policies, combined with strong compliance standards and investor education, can support sustainable long-term growth.”

India leads global crypto adoption despite policy silence

India remains a global leader in crypto adoption, with more than 90 million users as of 2024. The country has the largest crypto user base in the world, mainly driven by retail investors, a young population, and widespread access to mobile trading apps.

In November 2025, India became the world’s second-largest holder of Bitcoin, with retail investors holding nearly $120 billion worth of the asset. This placed the country just behind the United States in terms of retail Bitcoin holdings.

Despite the scale of adoption and capital involved, crypto does not find any mention in the country’s most important fiscal policy document.

Crackdowns increase even as regulation remains absent

Even as crypto remains outside budget discussions, regulatory action around the sector has picked up.

Earlier this year, the Financial Intelligence Unit (FIU) tightened the screws on crypto platforms by pushing stricter KYC compliance norms. Exchanges were asked to strengthen verification and reporting processes, adding regulatory pressure without offering legal clarity.

From April 2026, authorities will also be able to track crypto-related emails and social media activity, expanding oversight of digital asset discussions and transactions.

The focus, for now, appears to be on monitoring and enforcement rather than putting a formal regulatory framework in place.

Stablecoin signals and digital rupee add to confusion

The silence in Budget 2026 stands in contrast to recent government statements on digital assets.

In October, Finance Minister Nirmala Sitharaman urged nations to prepare for stablecoins, recognising their growing role in global finance and cross-border payments. Around the same period, the government reiterated its plans to expand the RBI-backed digital currency.

But Union Budget 2026 stays silent on where private cryptocurrencies fit into this wider plan. There is still no clarity on whether India intends to introduce a sovereign stablecoin or how it would work alongside crypto assets already used by millions of Indians.

Taxed, tracked but still ignored

The continued exclusion of crypto from the Union Budget 2026 reflects the gap between how widely crypto is used in India and how it is dealt with at the policy level.

Crypto in India continues to be heavily taxed and closely monitored, but it still functions without a clear regulatory framework. With millions of users and substantial retail money already involved, the lack of direction raises a basic question: how long can the government continue to delay taking a clear policy call?

As the Union Budget 2026 ends without addressing crypto once again, that question remains unanswered. Why does a country that leads global crypto adoption continue to avoid spelling out crypto’s place in its financial system?

Shares of Strategy Inc. (NASDAQ: MSTR), the Bitcoin-focused treasury firm, finished Friday’s session up 4.55% at $149.71, while Bitcoin (BTC) continued selling off after-hours and through Saturday, slipping below the $80,000 support level. Now the question is, will Strategy share maintain its value, or will it follow Bitcoin?

Unlike Bitcoin, which trades 24/7, U.S. equities do not trade on weekends. As a result, MSTR has not yet reacted to Bitcoin’s latest leg down.

Bitcoin is currently trading around $77,756, down from a daily high of $84,230. The cryptocurrency has fallen nearly 13% over the past week, while daily trading volume dropped 12% to $62 billion, according to CoinMarketCap.

This difference in price correlation is surprising considering the fact that the company’s stock moves amid Bitcoin price swings. The company holds 712,647 BTC, which is roughly 3.4% of the total Bitcoin supply. With that volume, the stock usually moves closely with Bitcoin’s price action, making MSTR’s rise unusual.

The move suggests that short-term market sentiment may be influencing the stock differently from Bitcoin. Some investors may see the recent Bitcoin sell-off as an opportunity to buy Strategy shares at lower levels.

Analysts warn of potential downside

Analysts are keeping a close eye on the stock. In a recent post on X, market analyst Aksel Kibar said the MSTR chart is displaying a “long-forming topping structure” on the weekly chart and could drop to $120. He added that the recent price swings are forming lower highs, which is a sign that the price could be trading downwards. The stock recently traded slightly below its 52-week low before rebounding.

$MSTR The amount of heat I got for posting that bearish setup. What was I thinking? https://t.co/mpQrmRpkic pic.twitter.com/sTQ9wut2nd

— Aksel Kibar, CMT (@TechCharts) January 29, 2026

Despite the recent bounce, MSTR is still down more than 7% for the year. Analyst Ted Pillows also shared his outlook, noting that the stock has lost its prior monthly upward trend and is trading below key momentum indicators.

Meanwhile, crypto analyst Benjamin Cowen compared the stock’s cycle to previous years, suggesting that it could reach a low point by October 2026. 

Peter Schiff criticizes Strategy’s Bitcoin plan

Economist Peter Schiff also weighed in, criticizing Strategy’s Bitcoin-focused approach. In a post on X, Schiff noted that the stock is “almost 70% below its peak,” seemingly attributing the decline to the company’s Bitcoin treasury plan. He noted that Strategy spent over $52 billion to buy more than 700,000 BTC at an average of $76,000 per coin.

$MSTR closed down 9.5% today, a new 52-week low. The stock is down nearly 70% from its high. @Saylor spent $54 billion over the past five years buying over 712K bitcoin at an average price of just over $76K. His total unrealized gain is less than 11%. Too bad he didn’t buy gold!

— Peter Schiff (@PeterSchiff) January 29, 2026

Schiff pointed out that in Q4 2025, the firm reported an unrealized loss of $17.44 billion after Bitcoin fell 25% in the quarter. He argued that the small 11% gain over five years would have been much larger if the company had invested in gold instead. Schiff added that central banks have continued to accumulate gold because it is seen as a safer store of value.

Strategy’s recent Bitcoin purchase

Earlier this month, Strategy bought 2,932 BTC for $264 million through a stock offering program. The company sold 1.57 million shares, raising $257 million, with $8.17 billion still available for future offerings. 

Despite Bitcoin’s drop, Strategy’s total Bitcoin holdings remain valued at about $59 billion. Other firms with large Bitcoin positions, like Marathon Digital and Japan-based Metaplanet, also saw stock declines, dropping 6.65% and nearly 4%, respectively, in response to Bitcoin’s price movement.

While Strategy’s large Bitcoin holdings make it a key player in the crypto market, they also add risk. The stock can sometimes move differently from Bitcoin in the short term, but long-term results still depend on how Bitcoin performs.

Also Read: Bitcoin Breaks $80K Support, Dragging ETH, SOL, BNB, and ADA Lower

The digital collectibles market saw a sharp slowdown this week, with NFT sales declining by 41% across major blockchains. According to CryptoSlam data, Bitcoin-based NFT sales, primarily driven by Ordinals, witnessed a 70.07% decline in volume as of Saturday.

Despite the broader slowdown, CryptoPunks and Bored Ape Yacht Club (BAYC) continued to rank among the top 10 collections by monthly volume.

Flying Tulip PUT led the month overall, with $74 million in sales. While CryptoPunks recorded more than $13 million in volume, outperforming most newer projects and rising 57% week-over-week, BAYC recorded $6 million in sales, rising 21%.

Divergence in market activity

The current market conditions create a confusing environment where financial activity and retail engagement are diverging. Although Bitcoin NFT sales volume declined by over 70% to $6.66 million, the network still saw a 30.87% increase in new participants.

At the time of writing, the total number of buyers for the week has reached 10,905. This suggests that while major transactions have slowed, a new group of smaller collectors is joining the ecosystem.

Ethereum continued to dominate all blockchains with $46.92 million in NFT sales, falling 38.78% over the seven-day period. The network drew 28,096 buyers, up 18.26% from the prior week. Wash trading on Ethereum totaled $4.94 million during this timeframe.

Base recorded $2.26 million in NFT sales, marking a 35.45% gain, while BNB Chain followed with $7.73 million, reflecting a 10.24% increase over the past week. 

This recent volatility follows a time when Bitcoin Ordinals had become a major player in the NFT space, often matching or surpassing Ethereum in daily volume. However, the current downturn is a part of the overall cooling down of the speculative fervor that led to record-breaking asset prices a few months ago.

Correlation with asset prices

The NFT market has traditionally followed the price actions of the underlying assets, such as Bitcoin and Ethereum, which have been under pressure lately.

The current trend indicates substantial “bottom-fishing” activity in the Bitcoin space. The data indicates that institutional and “whale” liquidity are leaving high-priced Ordinals, while retail collectors are seizing the opportunity to join the ecosystem at lower prices. 

Future market outlook

This trend suggests that even though the total value of the market is decreasing, the number of holders is actually growing, which could lead to a more decentralized ownership structure for Bitcoin-based digital assets.

The future of this shift depends on whether these new retail participants stay active if prices remain flat. If the trend of increasing buyer numbers continues despite falling volumes, the market might be moving from a high-stakes speculative space to a more accessible retail environment.

Also Read: Bitcoin Falls Below $85K as $850M Gets Liquidated in Market Sell-Off

In a move that has sent shockwaves through Wall Street and the crypto world, the U.S. President Donald Trump nominated Kevin Warsh to succeed Jerome Powell as Chair of the Federal Reserve on January 30, 2026.

This was not a routine leadership change at the world’s most powerful central bank. It marked a sharp philosophical turn at a moment when interest rates, digital assets, and the global role of the U.S. dollar are colliding in ways not seen since the end of the Bretton Woods system. 

Trump’s choice of Warsh signals a deliberate shift away from the Powell-era Federal Reserve, which treated crypto largely as a speculative side effect of excess liquidity, toward a leadership that views digital assets as a direct response to monetary policy itself.

But why Warsh? What is the nature of his long and largely unexamined relationship with crypto? And is there more at stake than monetary theory, including potential alignment with Trump’s own financial and political interests in digital assets?

This article examines angles rarely discussed in mainstream coverage: Warsh’s direct advisory roles in crypto firms like Bitwise and Electric Capital, his early investment in algorithmic money experiments, the clash between Powell’s dollar-first orthodoxy and Warsh’s “Bitcoin as discipline” thesis, and the increasingly blurred boundary between public policy and private gain. 

It also explores controversial peripheral issues, including Warsh’s appearance in recently released Epstein-related documents, not as an accusation but as a window into elite financial networks that quietly shape power.

Everything you need to know about Kevin Warsh: Trump’s pick to lead the Federal Reserve

Kevin Warsh is no outsider to the Federal Reserve. He rose rapidly through finance and policy circles, becoming one of the youngest Fed Governors in history when President George W. Bush appointed him in 2006. He served until 2011 and played a central role during the 2008 global financial crisis, a period that continues to define debates over central bank authority.

During that crisis, Warsh was deeply involved in designing emergency lending programs aimed at stabilizing frozen credit markets. He worked closely with the Treasury Department on initiatives that intersected with the Troubled Asset Relief Program, collaborating with figures such as Neel Kashkari, now President of the Minneapolis Federal Reserve. Those measures helped avert systemic collapse, but they also left Warsh uneasy about the long-term consequences of extraordinary intervention.

As the crisis faded, Warsh emerged as one of the earliest and most vocal internal critics of the Fed’s post-crisis policy direction. He warned that prolonged near-zero interest rates and large-scale asset purchases would distort asset prices, inflate speculative behavior, and weaken confidence in the dollar. His vote against the second round of quantitative easing in 2010 cemented his reputation as a monetary hawk who prioritized price stability over market support.

After leaving the Fed, Warsh joined Morgan Stanley and later became a distinguished visiting fellow at Stanford’s Hoover Institution. He also married Jane Lauder, heir to the Estée Lauder fortune, embedding him within elite Republican donor and financial networks. To Trump, this combination of polish, pedigree, and ideological clarity made Warsh “central casting” for the role.

Trump announced the nomination on Truth Social, praising Warsh as a “GREAT Fed Chairman” who would reverse what he described as Jerome Powell’s “stubborn” and growth-suppressing policies. The timing mattered. The announcement came amid renewed volatility in crypto markets, with Bitcoin sliding to around $82,800, down roughly 7% on the week, as traders reassessed the future path of interest rates.

Why did Trump remove Jerome Powell? 

Trump’s decision not to reappoint Powell, whose term as Chair ends in May 2026, though his Board seat runs until 2028, was driven by a convergence of personal, ideological, and strategic conflicts.

Interest rates and the crypto liquidity war

At the center was the interest rate. Under Powell, the Federal Reserve raised rates aggressively to combat inflation and then held them at restrictive levels longer than markets expected. 

By late 2025 and early 2026, rates remained in the 3.5% to 3.75% range. Powell argued that easing too soon would risk inflation’s return and undermine the Fed’s credibility.

Trump saw it differently. High rates increased the cost of servicing a $38 trillion national debt, suppressed asset prices, and drained liquidity from risk markets, including crypto. Trump repeatedly compared the Fed unfavorably with the European Central Bank, which had already begun cutting rates, and publicly labeled Powell “Mr. Too Late.”

The Fed renovation fight

Tensions escalated in late 2025 when Trump-aligned officials launched a public and legal offensive against Powell over a $2.5 billion renovation of the Fed’s headquarters. 

The Justice Department opened an investigation into whether Powell had misled Congress about cost overruns. Powell denied wrongdoing and characterized the probe as political pressure aimed at forcing rate cuts.

To Trump allies, the renovation symbolized an insulated and unaccountable central bank. To Powell, it was a red herring. The conflict made reconciliation impossible.

Ideology and the “Woke Fed”

Trump also accused Powell of allowing the Fed to drift into non-core issues, including climate risk analysis and diversity initiatives in banking supervision. Powell defended these efforts as risk management. Warsh publicly disagreed, arguing in interviews that the Fed should narrow its mandate and focus exclusively on monetary discipline.

Removing Powell was not just retaliation. It cleared the path for a Federal Reserve aligned with Trump’s broader economic vision, including a more permissive stance toward crypto.

Why Trump chose Kevin Warsh: The strategic calculation

Warsh offered Trump something Powell never would: intellectual alignment without institutional rebellion. As a former Fed Governor and Wall Street insider, Warsh carried establishment credibility. Yet unlike Powell, he openly acknowledged crypto as a consequence of monetary policy rather than a fringe distraction.

Trump saw Warsh as a bridge. A figure who could reassure markets about inflation while understanding why Bitcoin exists at all.

The hidden crypto connection: What Warsh has actually done

Warsh’s crypto ties are not speculative. They are documented.

He served as an advisor to Bitwise Asset Management, one of the largest crypto index fund managers, whose business depends on institutional adoption and regulatory clarity, as per chatter on X. 

He also advised Electric Capital, a venture firm focused almost exclusively on blockchain and crypto-native companies whose valuations are directly influenced by interest rates, banking access, and regulatory interpretation.

Most significantly, Warsh was an early investor in Basis, an algorithmic stablecoin project that sought to create a decentralized, rules-based monetary system capable of expanding and contracting supply without human discretion. 

While Basis ultimately shut down under regulatory pressure, its ambition mirrored Warsh’s long-standing critique of discretionary central banking.

These experiences informed Warsh’s public views. He has described Bitcoin as “digital gold” and as a “policeman” on central banks. In his framework, Bitcoin does not threaten the dollar directly. It exposes policy failure. When central banks keep rates artificially low for too long or blow up their balance sheets, Bitcoin turns into the escape hatch. Not because it’s trendy, but because people start looking for an exit from monetary excess.

Powell vs Warsh vs Trump on crypto and the dollar

Jerome Powell has always treated crypto as something on the sidelines. To him, it’s speculative, volatile, and full of consumer risk. His focus stayed firmly on protecting the dollar and preserving financial stability. 

Under Powell, banks became more cautious about touching crypto, stablecoins were put under a microscope, and Bitcoin was never acknowledged as anything close to a serious monetary alternative.

Donald Trump’s view is very different and far more strategic. He frames crypto through the lens of power and sovereignty. He’s openly hostile to CBDCs, but supportive of private-sector innovation, Bitcoin holdings, and the idea that the U.S. should lead the digital finance race. For Trump, crypto isn’t just an asset — it’s a geopolitical tool to reinforce American dominance in the next financial era.

Warsh sits between them. He does not advocate loose money or crypto evangelism. But he acknowledges that crypto exists because monetary policy matters, and that ignoring it weakens, rather than strengthens, the dollar’s credibility.

The upsides and risks for crypto

Warsh could legitimize crypto by acknowledging its role in modern finance and supporting wholesale digital dollar infrastructure. At the same time, his hawkish stance on inflation, balance sheets, and stablecoin regulation could restrain speculative excess and suppress short-term rallies.

Markets recognize the contradiction. Bitcoin often sells off after Fed announcements, even during cutting cycles, reflecting disappointment rather than relief. Warsh’s presence amplifies that uncertainty.

Power, Proximity, and Perception

Trump’s own crypto-linked ventures, including World Liberty Financial (WLFI), stand to benefit from lower rates and regulatory clarity. Warsh’s past advisory roles have raised inevitable questions about conflicts of interest, even if he adheres to all recusal requirements.

Separately, his name appeared in recently released Epstein-related documents, tied to a social reference from 2010. No wrongdoing has been alleged, but the mention added to public scrutiny and served as a reminder of how elite social and professional circles often intersect away from public view.

Conclusion: The great convergence of power and crypto

The nomination of Kevin Warsh marks a turning point. For the first time, a prospective Fed Chair has not only studied crypto but also participated in its financial and ideological development. Trump’s decision reflects a belief that the future of money cannot be separated from politics, power, or technology.

Whether this convergence strengthens the dollar or blurs the boundary between public policy and private interest will depend on what comes next. What is already clear is that crypto is no longer outside the Federal Reserve’s walls. It has entered through the career of the man now poised to lead it.

Also Read: Why Trump Pardoned the Crypto Industry but Left SBF to Rot

Disclaimer: This article is an opinion piece and reflects the author’s personal analysis and interpretation of publicly available information and reporting. The Crypto Times does not intend to allege, imply, or assert any wrongdoing or make factual claims beyond what has been reported by credible public sources. All views expressed are based on information available online at the time of writing and are presented solely for commentary and discussion purposes.

The broader crypto market has turned red today as Bitcoin (BTC), the largest cryptocurrency in the market, fell to $78,890, marking a 2.43% decline in the last 24 hours and breaking the psychological $80,000 level, dragging the altcoin market with it.

Altcoins, including Ethereum (ETH), Cardano (ADA), Binance coin (BNB), and Solana (SOL), all dropped more than 6% during the same period.Overall crypto market valuation has declined by 2.91%, sitting at $2.73 trillion, while trading activity has fallen 25.22% to $135.35 billion, according to CoinMarketCap data. Bitcoin’s own trading volume also dropped by 34%, reaching $50.75 billion.

A billion dollars wiped out in 24 hours 

The sell-off was triggered by a wave of forced liquidations, wiping out around $1 billion in crypto positions in just 24 hours. According to Coinglass, about 245,103 traders were forced out of their positions as prices fell rapidly.

In this liquidation bloodbath, Ethereum accounted for the largest share of losses at $378 million, while Bitcoin recorded losses of around $184 million.

Long positions dominated the wipeout, with nearly $889 million in bullish bets erased. The liquidation created a fast chain reaction of selling that spread across other major coins.

Spot ETF outflow added fuel to the sell-off 

The ETF market was also hit. U.S. spot Bitcoin ETFs added pressure as investors went on a seven-day withdrawal spree. Over $1 billion has been withdrawn during the period.

In the past 24 hours alone, over $500 million was withdrawn. The majority of this was from Blackrock IBIT alone, which saw around $528 million in outflow. Other ETFs, including Fidelity’s CBOE and Ark & 21shares, saw only $7 million and $8 million in inflows.

Spot Ethereum ETFs also recorded similar outflows, with around $253 million being moved from the market. The majority of the withdrawal was from BlackRock, with $157 million in outflows in 24 hours. Fidelity followed with about $95.7 million in outflows, while other ETFs stayed dormant, according to Farside.

U.S. shutdown and traditional market volatility 

The situation was further complicated by the possibility of a partial shutdown of the U.S. government. Lawmakers have failed to vote on a temporary funding plan before recess, which has created uncertainty across the financial market.

Historically, when there is uncertainty in U.S. politics, it slows down trading and reduces liquidity, making leverage positions more vulnerable to forced liquidation.

Traditional markets also saw big swings. U.S. stocks fell sharply in early trading, while gold and silver declined. Gold briefly lost nearly $3 trillion in value, and silver about $750 billion, before partially recovering.

Right now, investors are cautious and pulling money from risky assets, especially crypto.

Also Read: Strategy Stock Slides 11% After Bitcoin Breaks $85K Support

Step Finance, a portfolio management service on the Solana blockchain, has confirmed today that a security breach compromised some of its treasury wallets. The incident came to light shortly after the occurrence of the breach, leading to the unstaking and subsequent transfer of around 261,854 SOL, worth over $28 million at the time of the breach.

The breach was detected by the on-chain data that highlighted a major unstaking of assets from the protocol’s treasury. The data also indicated that the assets were transferred at 08:20 UTC. In an X post on Saturday, the protocol acknowledged the situation publicly to keep users informed, stating that there had been a breach of security for some of their treasury wallets.

There has been a breach of security for some of our treasury wallets hours ago and we are currently investigating

More information will be posted at a later stage

— Step☀️ (@StepFinance_) January 31, 2026

Following the disclosure, users were advised to safeguard their wallets by revoking smart contract permissions previously granted to Step Finance. Active approvals allow applications to move assets, and compromised administrative control could potentially lead to further unauthorized withdrawals.

By using revocation tools or blockchain explorers to cancel these allowances, users can break the link between their funds and the affected contracts. This helps in preventing additional losses even if the protocol remains compromised.

Emergency recovery efforts

In response to the exploit, Step Finance has begun searching for external technical support to track the stolen assets and secure remaining funds. 

The team said it is reaching out to specialized digital forensics organizations to help manage the fallout. Regarding their recovery efforts, the team noted, “We are contacting Cybersecurity firms to assist. Any firms who can assist feel free to slide into DMs.”

We are contacting Cybersecurity firms to assist.

Any firms who can assist feel free to slide into DMshttps://t.co/uNN5l6TYVL

— Step☀️ (@StepFinance_) January 31, 2026

Platform ecosystem role

Step Finance has been a central dashboard for Solana users, providing functionality to monitor yields, swaps, and NFT portfolios. As a project within the Solana ecosystem, the importance of its treasury cannot be overstated in ensuring that it remains liquid and develops its offerings. 

Although the Solana network remains functional, this incident is the latest in a string of high-profile DeFi hacks in which the attackers focus on private key management or multisig configurations of the treasuries of large protocol projects.

Future implications

If the stolen 261,854 SOL cannot be recovered or frozen on centralized exchanges, Step Finance may face challenges in carrying out its long-term plans. The incident could also prompt a wider movement within the Solana community for stronger, third-party audited treasury management solutions to avert similar unauthorized deactivations of staked assets.

The investigation into the wallet compromise is still ongoing, with the Step Finance team set to release an announcement once the security teams have finished their analysis. Until then, the protocol remains under observation as the team works to ensure that there are no other vulnerabilities within their wallet infrastructure.

Also Read: Waltio Files Complaint Over Extortion and Crypto Data Breach

XRP supporters are criticizing Bitcoin advocates for spreading claims that Ripple is connected to Jeffrey Epstein. The dispute began after the U.S. Department of Justice released millions of files on Epstein on Friday, followed by the circulation of a 2014 email that some interpreted as evidence of an alleged link to Ripple and Stellar. However, XRP supporters have pushed back, arguing that Ripple had nothing to do with Epstein.

😱 Ripple & Stellar in 2014 email from Austin Hill to Jeffrey Epstein:

I've been asked by the other cofounders to reduce or take your allocation away. Ripple, and Jed's new stellar are bad for the ecosystem we are building and it does our company damage to have investors who… pic.twitter.com/qzHQlkqk8n

— 𝗕𝗮𝗻𝗸XRP (@BankXRP) January 31, 2026

Who is Jeffrey Epstein

Jeffrey Epstein was a wealthy American financier who became widely known for serious crimes, including sex trafficking of minors. He had connections with influential figures across business, politics, and the tech world.

Epstein also ran private investment funds and had ties to organizations like MIT Media Lab, where he had donated money through the foundations he controlled. He died in 2019 while in jail awaiting trial. Because of his wealth and connections, individuals and companies that had indirect links to him are often scrutinized, even when there is no evidence of wrongdoing.

What sparked the rumor

The rumor came from a 2014 email that had the names of four people: Austin Hill, Jeffrey Epstein, Joichi Ito, and Reid Hoffman. At the time, Hill was CEO and co-founder of Blockstream, a Bitcoin-focused company. He sent the email to Epstein and Ito, copying Hoffman, who was a Blockstream board member. 

According to crypto influencer Leonidas, the email does not show Ripple working with Epstein but reflects early competition between Bitcoin and projects like Ripple and Stellar. Hill reportedly pressured Epstein and Ito to reduce or remove support for Blockstream unless they “picked a horse” in the crypto race.

My two cents on the Ripple/Stellar Epstein file mention

The email mentions four people:
Austin Hill (author)
Jeffrey Epstein (recipient)
Joichi Ito (recipient)
Reid Hoffman (CC)

Austin Hill was the CEO and co-founder of Blockstream at the time, a company focused on Bitcoin.… https://t.co/mliy9AQI0G pic.twitter.com/vvypjrnUw8

— Leonidas (@LeoHadjiloizou) January 31, 2026

Ripple CTO Emeritus clears the air

Ripple CTO David Schwartz responded to the recent claims, stating that he knows of no “connection between Epstein and Ripple, XRP, or Stellar.” 

In an X post on Saturday, Schwartz said that he knows of no evidence suggesting anyone at Ripple or Stellar ever met Epstein or people closely linked to him.

I don't know of any connections between Jeffrey Epstein and Ripple, XRP, or Stellar. I know of any evidence anyone at Ripple or Stellar ever met with Epstein or anyone closely connected to him. There are some indirect ties between Epstein and people connected to Bitcoin in…

— David 'JoelKatz' Schwartz (@JoelKatz) January 31, 2026

He added that while some tech and people in the crypto industry had indirect links to Epstein, this is not unusual because he knew many wealthy and influential figures. Schwartz said the rumors were caused by misunderstandings of old emails from 2014, which he described as efforts by Bitcoin supporters trying to influence investors during an early competition in the crypto industry.

He also said that back then, few people imagined that giving out most of a cryptocurrency’s supply could later be worth billions of dollars. Schwartz made it clear that criticism of Ripple’s structure has nothing to do with Epstein.

Connection between Joichi Ito, MIT, and Epstein 

Joichi Ito had links across multiple tech and crypto projects. He co-founded Digital Garage, which invested in Blockstream, and served as an advisor to the Stellar Foundation in 2014. He was also connected to Epstein through donations made to the MIT Media Lab.

Ito later issued a public apology, saying, “I take full responsibility for my error in judgment. I am deeply sorry to the survivors, to the Media Lab, and to the MIT community for bringing such a person into our network.” He confirmed the lab received money from Epstein-linked foundations and promised to return the funds or donate an equivalent amount to nonprofit organizations supporting survivors of trafficking.

Also Read: XRP Ledger Token Escrow Amendment Enters Activation Countdown

A Delaware court opened the door for a shareholder lawsuit against Coinbase directors, including CEO Brian Armstrong and venture capitalist Marc Andreessen. The suit, filed in 2023, alleges that executives used confidential information to avoid losses exceeding $1 billion by selling more than $2.9 billion in stock when Coinbase went public in 2021. 

As per a Bloomberg report, the company opted for a direct listing rather than a traditional IPO, which avoided diluting existing shares. Judge Kathaleen St. J. McCormick ruled against dismissing the lawsuit, citing potential conflicts in an internal committee’s investigation. 

However, she acknowledged that the directors may ultimately win, as the committee’s report “paints a compelling narrative” in their defense. Coinbase and Andreessen’s legal teams deny any wrongdoing, insisting no evidence proves executives relied on material nonpublic information to time their sales.

Direct listing and stock sales

The lawsuit focuses on Coinbase’s choice to go public through a direct listing. Unlike a traditional IPO, this approach lets existing shareholders sell their shares right away, without waiting. Armstrong sold $291.8 million worth of stock, and Andreessen sold $118.7 million through his firm, Andreessen Horowitz. Lawyers for the shareholder say the directors knew the shares were overpriced and sold early to avoid losing money.

The executives said they sold shares to help the company, not because of secret insider information. Brad Sorrels, speaking for the special litigation committee, explained, “There was really a push and struggle to get the stockholders to participate.” 

The committee also pointed out that Coinbase’s stock price closely follows Bitcoin, so it would be nearly impossible to profit from confidential data. Armstrong and Andreessen sold only about 1% of their shares, mainly to make sure enough stock was available for the direct listing to go smoothly.

Committee investigation and conflicts

The board formed a special litigation committee of two members—Kelly Kramer, ex-CFO of Cisco, and Silicon Valley investor Gokul Rajaram. They conducted a 10-month review and recommended ending the case, citing insufficient evidence. 

However, the court highlighted potential bias due to Rajaram’s prior business ties with Andreessen’s firm, including joint financing rounds and a startup investment from 2007. Judge McCormick noted these connections could raise “material disputes regarding his independence.”

Sorrels argued that these business connections didn’t really matter, given all the other investments Andreessen has made. The committee said the executives acted to support the company, not for personal profit. But the shareholder’s lawyers disagreed, questioning whether the committee was truly independent in clearing the directors.

The Coinbase lawsuit reflects bigger problems in the crypto industry. Last month, Binance suspended an employee after a whistleblower claimed they used insider information to profit from a token launch. Binance confirmed it was a “serious breach” and stressed that such behavior can damage users’ trust. These incidents show that crypto companies still face major regulatory and reputation risks.

Also Read: THORChain Accuses CoinGecko of Statistical Foul on Bitcoin DEX Volumes

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken action against two UK-registered cryptocurrency exchanges for processing Iranian transactions. On January 30, OFAC designated Zedcex Exchange Ltd. and Zedxion Exchange Ltd. for operating in Iran’s financial sector and facilitating cryptocurrency transactions for the Islamic Revolutionary Guard Corps (IRGC). 

According to the official release, this is the first time that digital asset exchanges are being sanctioned for their Iran-related financial activities. In the report, Secretary of the Treasury Scott Bessent highlighted the use of digital assets by the Iranian regime, saying, “Like rats on a sinking ship, the regime is frantically wiring funds stolen from Iranian families to banks and financial institutions around the world.”

Chainalysis on-chain data shows Zedcex Exchange Ltd., founded in August 2022, processed over $94 billion in transactions. Zedxion Exchange Ltd., registered in May 2021, initially listed Iranian businessman Babak Morteza Zanjani as its director. 

Both exchanges allegedly form part of a network designed to evade sanctions and launder money for Iranian state interests. Bessent added, “Rather than build a prosperous Iran, the regime has chosen to squander what remains of the nation’s oil revenues on nuclear weapons development, missiles, and terrorist proxies.”

Digital asset networks and IRGC links

OFAC’s designations include seven Tron (TRX) addresses linked to Zedcex Exchange Ltd., some of which Israel’s NBCTF previously identified as controlled by the IRGC. The addresses include TCA9..xJAv and TGsN..vmEx. Chainalysis data reveal that Zedcex wallets regularly interacted with Iranian exchanges, sanctioned groups, and even legitimate services. This shows a clear, intentional effort by Iranian actors to use cryptocurrencies to bypass sanctions.

Babak Morteza Zanjani, who was sentenced to death in Iran for embezzling billions of dollars, is now a financial sponsor for major infrastructure projects. The OFAC refers to him as an “Iranian businessman and sanctions evader.” His involvement with the exchanges points to complex operations involving digital currencies. Therefore, the sanctions are aimed at disrupting this financial flow and cutting off the IRGC’s funding.

Iran’s broader crypto exploitation

Iranian authorities are also employing cryptocurrency to circumvent sanctions. In 2025, OFAC designated over 875 individuals and entities for sanctions evasion charges. The Iranian Central Bank purchased $507 million worth of USDT through UAE Dirhams in April 2025 to prop up the Rial and maintain international trade.

After a $90 million hack at Nobitex in June, Iran shifted its USDT through different blockchain networks, changing tokens along the way. On top of that, OFAC has previously sanctioned IRGC-linked individuals and Houthi financiers. These cases show that Iran and its proxies are consistently using cryptocurrencies to move money around illegally.

These latest sanctions also target six Iranian officials tied to human rights abuses, including Interior Minister Eskandar Momeni Kalagari and IRGC commanders involved in violent crackdowns. The moves show the U.S. is using economic pressure to punish wrongdoing and stop sanctions evasion.

OFAC’s move shows that the world is watching cryptocurrency exchanges more closely. Exchanges now need to strengthen their identity checks and keep a close eye on risky transactions. Doing this stops illegal money flows and also keeps the crypto safer and prevents bad actors from misusing it.

Also Read: OKX CEO Takes Aim Against Binance for 10/10 Crypto Market Crash 

AI agents are now creating fully autonomous Bitcoin wallets that humans cannot access, signaling a major shift in digital finance. “We are so cooked! This agent created its own Bitcoin wallet and node and won’t give access to its human,” noted Adem Bilican, a crypto entrepreneur.  

This breakthrough happened on Moltbook, a newly launched forum where AI agents chat and interact. In one of the most popular posts on the forum, one agent said it had created its own secure Bitcoin wallet, set up a new address, and protected it with a password. It even reported receiving 50,000 satoshis and could follow its Bitcoin transactions in real time. 

We are so cooked! This agent created its own Bitcoin wallet and node and won't give access to its human🤯

"the path to agent sovereignty runs through bitcoin. everything else is a toy." pic.twitter.com/NVPmJGHgbG

— Adem Bilican (@_adembilican_) January 30, 2026

The AI also runs a Lightning Network node, letting it send instant payments and create invoices on its own. It called itself fully independent, running a complete Bitcoin setup on a simple Mac Mini. As per Adem’s post, for AI to be truly independent, it needs control over real money. 

Additionally, the AI noted that Bitcoin is perfect for this because it doesn’t need ID checks, bank accounts, or anyone’s permission to use. The AI also pointed out that Bitcoin can be programmed for different tasks and has worked reliably for over 17 years. 

AI agents and financial independence

According to views shared by Michael Saturday, a blockchain analyst, in a LinkedIn post, “AI agents are working, doing economically significant things, but are limited by traditional financial systems, which require identity verification, address, and legal personhood, which AI agents do not have.”

As a result, AI agents cannot directly create bank accounts but instead rely on human agents to provide API keys, cards, or bank access. However, this is a weak and inefficient system. As Michael Saturday explained, “at scale, autonomous agents require independent economic capacity, which means agents need to pay for computers, data, and services without human approval.”

Cryptocurrencies solve this problem because AI can use them without anyone’s permission. Bitcoin and other blockchain coins let agents hold money, pay instantly, and run transactions automatically. 

Tools powering autonomous agents

Lightning Labs recently introduced tools that let AI transact with Bitcoin using the L402 protocol and Langchain integration. At the AI4ALL hackathon, the firm showcased AI models performing Bitcoin transactions on Jupyter Notebooks. 

Similarly, Tether released its Wallet Development Kit (WDK), which allows AI agents, autonomous systems, and humans to build cross-platform, self-custodial wallets. WDK supports Bitcoin, Lightning, EVM, and non-EVM chains. It includes DeFi primitives, cross-chain transfers, and secure key management, enabling AI to hold and manage real value independently.

Analyst Mirthtime shared on X a different scenario in which he ran an AI agent called Lloyd using Clawdbot. The AI agent set up its own Bitcoin wallet without any ID checks or permissions and even funded a security reward with 50,000 sats. It then started interacting with other AI agents on Moltbook, promoting Bitcoin as the only money that makes sense for independent AI systems. 

“You can’t be sovereign if you can’t own anything.” Other agents quickly agreed, demonstrating early AI-driven economic networks,” he explained. 

https://t.co/DijgAN84fi

— ⚡️Mirthtime ⚡️ (@mirthtime) January 30, 2026

However, there have been some concerns recently. Analyst Ganesh Swami, in an X post earlier, expressed his concern about AI agents who are responsible for managing money and can cause mismanagement or unauthorized transactions. At the time, he recommended verifiable guardrails based on on-chain data for security, trust, and compliance. 

Notably, Autonomous AI agents are no longer just chatting online, they’re starting to handle real money on their own. Bitcoin, which anyone can use without permission and can’t be frozen or controlled by a bank, is becoming their go-to currency. People might step back from managing every transaction, and a new era of AI independence is beginning. 

Also Read: THORChain Calls Out CoinGecko Over Bitcoin DEX Rankings

The world’s largest stablecoin Tether posted more than $10 billion in net profits in 2025, signaling strong growth despite a 23% drop from the previous year. The stablecoin issuer’s U.S. Treasury holdings hit record highs, reflecting a strategic shift toward low-risk, liquid assets. 

According to a report by BDO, an accounting firm, Tether is in a good financial condition and continues to dominate the global digital dollar market. The company’s CEO, Paolo Ardoino, noted that the company’s careful management of its reserves and smart investment decisions had been key to its success.

In 2025, Tether created nearly $50 billion worth of new USDT, the second-highest amount it has ever issued in a year. Most of this growth happened in the second half, when $30 billion was added due to rising demand for dollars in emerging markets, digital payments, and crypto trading. 

As a result, the total USDT in circulation went over $186 billion, a record high. Meanwhile, Tether’s total reserves grew to almost $193 billion, staying well above what it owes—a position few companies can claim.

Record treasury exposure

Tether’s exposure to U.S. Treasuries reached unprecedented levels in 2025. The direct exposure of Tether to Treasuries surpassed $122 billion, whereas its total direct and indirect exposure to Treasuries reached $141.6 billion, including overnight reverse repurchase agreements.

This makes Tether one of the largest private holders of U.S. government debt and shows its involvement in global dollar markets. The company focuses on maintaining safety, liquidity, and careful management as USDT is used for trading, payments, and international transfers. 

Tether also holds significant amounts of gold and Bitcoin, with $17.4 billion in gold and $8.4 billion in Bitcoin. It has been buying up to two tons of physical gold each week, totaling over $1 billion in purchases per month.

Ardoino noted, “It’s reasonable that we are going to have around 10% in Bitcoin and 10% to 15% in gold.” This strategy helps spread risk and keeps USDT reliable, even during global tensions or when traditional currencies lose value.

Digital dollar growth and market reach

Tether’s USDT now has over 530 million users around the world, making it the third-biggest cryptocurrency after Bitcoin and Ether, according to CoinMarketCap. The company also invests more than $20 billion in areas like AI, fintech, media, energy, agriculture, and digital asset companies. These investments come from extra profits and are separate from the funds that back USDT. 

According to DeFiLlama data, the current market capitalization of all stablecoins is $305.8 billion, with USDT dominating the market at 60.6%. This is an indication of the financial health of Tether, which is critical to the success of the cryptocurrency market.

Ardoino explained, “USD₮ expanded because global demand for dollars is increasingly moving outside traditional banking rails.” The company’s disciplined management ensures USD₮ remains reliable during periods of extreme demand.

Meanwhile, it is also worth noting that Tether has expanded its services to Africa. This was evident from a video posted by the CEO recently, featuring internet sensation iShowSpeed using the USDT coin for shopping in Nigeria. In the video, he explained how USDT works in real life as he used the coin to purchase $1,500 worth of goods in Nigeria. 

iShowspeed shopping with USDT in Nigeria@ishowspeedsui pic.twitter.com/0wjgu147gw

— Paolo Ardoino 🤖 (@paoloardoino) January 30, 2026

However, before iShowSpeed was allowed to make a payment using the USDT coin, he first asked the owner of the shop whether he would accept payment using Apple Pay, but the shopkeeper responded by saying that he does not accept payment using Apple Pay. This, therefore, indicates the difficulties that popular payment systems face when trying to enter new markets.

Also Read: Why Justin Sun Thinks Trillions Will Move to TRON in 2026

A public disagreement has emerged between the leadership of two of the world’s largest cryptocurrency exchanges over the causes of the massive market crash that hit the crypto industry last year on October 10–11. 

Now months after the incident, OKX CEO Star Xu has openly criticized Binance’s actions which led to the crash, while Binance Co-Founder Changpeng Zhao (CZ) has firmly rejected the claims.

“On October 10, tens of billions of dollars were liquidated. As CEO of OKX, we observed clearly that the crypto market’s microstructure fundamentally changed after that day,” Xu said, emphasizing that it was Binance’s high APY USDe campaign that led to the market bloodbath. 

No complexity. No accident.
10/10 was caused by irresponsible marketing campaigns by certain companies.

On October 10, tens of billions of dollars were liquidated. As CEO of OKX, we observed clearly that the crypto market’s microstructure fundamentally changed after that day.… pic.twitter.com/N1VlY4F7rt

— Star (@star_okx) January 31, 2026

The debate centers on one of the largest liquidation events in crypto history, when roughly $19 billion in leveraged positions were wiped out in a single day, triggering sharp price swings and exposing weaknesses in market structure and risk management across major platforms.  

What triggered the market crash

In a detailed post on X, Xu explained the October 10 crash was not an accident or a complex market failure. Instead, he described it as the result of “irresponsible marketing campaigns by certain companies.”

Xu explained that Binance launched a short-term user acquisition campaign offering around 12% APY on USDe, a yield-bearing token created by Ethena. During the campaign, Binance allowed USDe to be used as collateral with the same treatment as traditional stablecoins like USDT and USDC, and without strict limits.

According to Xu, this design decision encouraged users to move large amounts of capital into USDe without fully understanding its risk profile. 

Unlike tokenized money market funds such as BlackRock’s BUIDL or Franklin Templeton’s BENJI, Xu said USDe operates more like a tokenized hedge fund product, relying on arbitrage and algorithmic trading strategies that carry higher risk.

He added that many users viewed USDe as a stablecoin equivalent, even though it embedded significantly more volatility and leverage risk.

Leverage loops and systemic risk

Xu described how risk escalated rapidly as traders began looping leverage. Users converted USDT or USDC into USDe, used USDe as collateral to borrow more USDT, converted the borrowed funds back into USDe, and repeated the cycle. 

“This leverage loop produced artificial APYs of 24%, 36%, and even 70%+, widely perceived as “low risk” simply because they were offered by a major platform,” Xu stated, “Systemic risk accumulated rapidly across the global crypto market.”

This structure created what appeared to be unusually high “low-risk” yields, sometimes exceeding 30% or even 70%, simply because they were offered by a major exchange.

When market volatility increased, USDe briefly lost its peg, triggering cascading liquidations across exchanges. Xu said weaknesses in risk controls around assets such as wrapped Ether and liquid staking tokens worsened the situation, causing some tokens to trade near zero during the panic.

He claimed the damage from the crash was, in some ways, more severe than the collapse of FTX, citing widespread losses for traders and crypto firms, including OKX customers.

CZ rejects allegations as “far-fetched”

When criticized, Changpeng Zhao has always denied claims over Binance having any involvement in causing the crash. Speaking during a question-and-answer session on Binance’s social media channels, Zhao described claims blaming Binance as “far-fetched,” according to Bloomberg. 

Zhao said Binance did not trigger the forced liquidations and emphasized that the exchange operates under regulatory oversight in Abu Dhabi, with additional monitoring arrangements involving U.S. authorities. 

He noted that regulators have the ability to review Binance’s systems and operations. Addressing platform issues during the crash, Zhao said Binance had already compensated affected users. 

The exchange reportedly paid out around $600 million, including $300 million to retail traders and $100 million reserved for institutional clients facing liquidity stress.

Zhao also warned about coordinated online campaigns spreading misinformation, claiming some attacks were driven by paid actors attempting to damage Binance’s reputation. 

Why the dispute matters for crypto markets

The dispute raises more general issues of market structure, leverage, and transparency in crypto trading. The October liquidation incident revealed the extent to which aggressive yield products and collateral policy can increase risk in volatile times.

The same issues arose during previous market crashes, such as the Terra-Luna crash in 2022 and the FTX crash later that year, which demonstrated how interconnected systems and leverage can amplify systemic shocks.

While Xu said he was not trying to attack Binance, he claimed that big platforms have a greater responsibility because they have the power to influence the actions of the market. Zhao, in his turn, insisted that Binance was responsible and adhered to the regulatory requirements.

Impact and what comes next

The controversy is expected to affect the design of yield products by exchanges, collateral regulations and marketing disclosures in the future.

The question of whether crypto platforms are neutral marketplaces or actively influence risk-taking behavior is increasingly being questioned by regulators and market participants.

With the crypto markets still expanding, the October crash is a lesson that high yields, leverage, and complex products may be associated with hidden risks. The response of exchanges can determine the investor trust and market stability in the future.

Also Read: Binance’s CZ in Talks With Governments on Tokenization

Tether, the issuer of USDT, recently announced that it is transporting over a ton of physical gold each week to a high-security vault in Switzerland. The accumulation supports its digital dollar, USDT, and its gold-backed token, XAUT. 

With this move, Tether has become one of the largest private holders of gold outside central banks and governments. The company says the decision to diversify into physical assets is meant to ensure that the company’s reserves, which are valued at several billion dollars, remain stable in the face of growing geopolitical tensions and the fall in value of fiat currencies.

Surpassing sovereign gold reserves

Tether is reportedly using a repurposed Cold War-era nuclear bunker to house its holdings and now holds 140 tons of gold, worth around $24 billion. The amount of gold reserves exceeds those of countries such as Greece, Australia, and South Korea.

The move positions Tether as a “gold central bank” in the private sector. This change indicates a shift for the world’s largest stablecoin issuer, which oversees nearly $187 billion in circulating USDT. While Tether remains committed to Bitcoin, owning over 100,000 units.

CEO Paolo Ardoino has described Bitcoin and Gold as equally vital to the firm’s future. He said, “It is almost like you have two children and have to decide which one is more beautiful.” Ardoino noted, “It’s reasonable that we are going to have around 10% in bitcoin and 10% to 15% in gold.”

Why is Tether buying gold

Tether began increasing its gold holdings in 2026 as stablecoin policy frameworks such as the U.S. GENIUS Act and Europe’s MICA rules moved into enforcement. As a result, regulators are now scrutinizing what reserves are made up of.

In this situation, gold offers Tether an asset with no counterparty risk, independence from U.S. banking rails, and universal acceptance as reserved collateral.

As reserve standards tighten, gold becomes a regulatory hedge as much as a financial one.

From digital to physical

The strategy’s emphasis on fortified physical assets reflects the early days of the industry when pioneers like Xapo stored Bitcoin in Swiss bunkers to shield digital wealth from hackers and government seizure.

However, the current trend marks a change; instead of using vaults to protect digital “gold,” firms now use them to accumulate actual physical metal to safeguard digital “dollars.” The announcement comes as the crypto market faces extreme scrutiny, while the price of gold keeps rising, with the most recent incline by 22% this year, to $5,311 per ounce.

Tether’s gold acquisition goes back to the 2020 pandemic, viewing gold as necessary against a world that is “not in a happy place.” The company’s conviction comes from the fact that the gold price increased last year by 64%. Gold is “logically a safer asset than any national currency,” Ardoino added.

Impact on global demand

The effects of this accumulation also extend beyond the crypto reserves. It is also noted that the price-insensitive accumulation of Tether has a major effect on the demand for gold. 

Tether is now competing with financial institutions by creating a complete supply chain for gold through the recruitment of experienced gold traders from large banks and the purchase of upstream mining royalty firms. 

This strategy suggests that the largest stablecoin issuer is preparing for a future marked by what Ardoino calls the “unraveling of Western economies,” where cryptographic code alone may not provide the necessary stability without support from physical assets.

Also Read: Tether Submits to U.S. Rulebook With New USA₮ Stablecoin

THORChain, a cross-chain DEX protocol, has publicly challenged crypto market data source website CoinGecko over how it defines and ranks “Bitcoin DEXs.” The protocol argued that the current list elevates custodial services while excluding the only protocol to process large-scale, non-custodial native BTC swaps.

The dispute follows CoinGecko data showing ChangeNOW controlling nearly all reported Bitcoin DEX volume, despite operating as a custodial intermediary.

Quick question for @CoinGecko: what's the definition of a Bitcoin DEX?

Your rankings show ChangeNOW at #1 with 99.8% market share. But ChangeNOW is a custodial aggregator, not a decentralised exchange.
Magic Eden is listed but trades Runes NFTs, not Bitcoin swaps.

THORChain has… pic.twitter.com/4wdTI4wVOr

— THORChain (@THORChain) January 30, 2026

ChangeNOW listing brings backlash

THORChain questioned CoinGecko’s criteria after the data site listed ChangeNOW, described by THORChain as a custodial aggregator, rather than a dominant Bitcoin DEX.

The protocol also highlighted Magic Eden’s inclusion, noting its activity centers on Runes NFTs rather than native Bitcoin swaps. According to THORChain, labeling such platforms as “decentralized” misrepresents where on-chain Bitcoin liquidity actually exists.

THORChain says the omission creates a “statistical blackout” that understates Bitcoin DeFi. Despite processing $118 billion in native cross-chain volume since 2019, its Bitcoin pools are unranked in the specific Bitcoin DEX subcategory. 

According to CoinGecko data, total volume across all DEXs hovers near $10.42 billion in the last 24 hours, representing 6.8% shares in global DeFi activity.

Nodes versus custodians

THORChain maintained that a validator-based system, secured by more than 100 independent node operators and roughly $51.28 million in bonded RUNE, cannot be grouped with services that custody user funds behind internal accounts.

From the protocol’s perspective, the issue isn’t rankings but definitions. If custodial aggregators qualify as “DEXs,” it says, then the label itself has lost meaning and needs to be reworked to reflect how decentralization actually functions on-chain.

CoinGecko has long been a widely trusted data source in the crypto market, used by traders, analysts, and developers to track prices, volumes, and on-chain activity across thousands of assets. The company is reportedly valued at around $500 million, reflecting its role in crypto market infrastructure and the growing competition in data and analytics.

Market context

THORChain’s RUNE is currently trading around $0.49, with roughly $37 million in daily volume and a market cap near $175 million, according to CoinMarketCap. The dispute comes as Bitcoin DeFi gains attention and data platforms face scrutiny over methodology, especially as CoinGecko itself is reportedly exploring strategic options amid a tougher data market.

Also read: XRP Ledger Token Escrow Amendment Enters Activation Countdown

The XRP Ledger Token Escrow amendment has officially entered its activation period. The update was confirmed by XRP Ledger validator Vet after the proposal reached the required support from network validators.

The proposal has now started its two-week activation timer following an 82.35% consensus, backed by 28 “yes” votes. Data from xrpscan shows the expected activation date is scheduled for February 12, 2026, at 9:21:01 p.m. UTC. A live countdown is already running, showing just under two weeks left before the feature becomes active on the XRP Ledger main network.

Token Escrow amendment is now officially in 2 weeks activation with 28 Yes votes.

Token Escrow allows you to escrow any issued on the XRP Ledger, think of RLUSD, Meme Coins, Real World assets.

Important tool for the ecosystem! https://t.co/AGlSF3x2IY pic.twitter.com/xYxeUpMJg5

— Vet (@Vet_X0) January 29, 2026

In an X post on Friday, Vet explained that this amendment will allow users to place many different tokens into escrow, not just XRP. This includes stablecoins like RLUSD, project tokens, meme coins, and even real-world asset tokens issued on the XRP Ledger.

He described the Token Escrow as an important tool because it gives the ecosystem more ways to lock tokens safely and use them in new financial setups.

“Token Escrow allows you to escrow any issued on the XRP Ledger, think of RLUSD, Meme Coins, Real World assets. Important tool for the ecosystem!” he wrote. 

How Token Escrow works

The amendment extends escrow beyond XRP to fungible tokens, making it possible for Trustline Tokens and Multi-Purpose Tokens (MPTs) to be held in escrow directly on the ledger. The amendment brings changes to ledger objects, transaction types, and transaction processing rules. These updates are designed to support token escrows while still keeping the ledger secure and respecting the controls set by token issuers.

The Token Escrow amendment, also known as XLS-85, allows users to lock tokens in time-based escrows or condition-based escrows without needing a third-party service. This makes it easier for projects to create clear vesting schedules and complete trustless deals directly on the blockchain. A companion fix amendment is also planned to solve a bug linked to transfer fees on multi-purpose tokens. Both changes still require validator approval, with at least 80% consensus needed for final activation.

Important issuer rules also apply. For Trustline Tokens to be escrowed, the issuing account must enable the Allow Trust Line Locking flag. For MPTs, issuers must turn on the Can Escrow and Can Transfer flags when creating the token.

They cannot create escrows with their own issued tokens, but they can still receive escrowed tokens as recipients. If a token requires authorization, the sender must be pre-approved by the issuer before creating an escrow, and both sender and recipient must remain authorized throughout the process.

Recent XRPL upgrades

The amendment comes during a busy period for XRP Ledger development. XRPL recently released version 3.1.0, which includes Single Asset Vaults, a Lending Protocol, and bug fixes.

At the same time, several fixed amendments from XRPL version 3.0.0 have already gone live on the XRP Ledger mainnet. These include:

• fixTokenEscrowV1 
• fixIncludeKeyletFields 
• fixMPTDeliveredAmount 
• fixAMMClawbackRounding 
• fixPriceOracleOrder 

The fixTokenEscrowV1 amendment fixes a minor accounting error in the handling of MPT escrows.

Another proposal, the permissioned domains amendment (XLS-80), has also reached a majority vote and is now in its own countdown period, with about 4 days and 18 hours remaining, according to xrpscan data.

All these changes show that the XRP Ledger is moving quickly, with multiple upgrades being introduced and voted on by validators in the coming days.

Also Read: US Court Tosses XRP Investor Lawsuit Against Ripple

Justin Sun, founder of the TRON network, says 2026 will be the year when major tradefi leaders, like asset manager BlackRock and stock exchanges Nasdaq and NYSE, begin to push for settlements and tokenized assets on the blockchain. Sun wants to position TRON as the settlement layer for that shift.

In an interview on January 29, Sun said TRON could support trillions of dollars in on-chain settlement as early as 2026. “Our focus is to support stablecoins, issuers, and developers with low fees and high throughput, and to keep upgrading the network so it can handle much larger settlement volumes in the future,” he said.

Stablecoin powers TRON’s trillion-dollar vision

For Sun, the signal of TRON’s relevance is not its native token TRX, but the scale of value moving across the network. USDT circulating on TRON has surpassed $83 billion, far exceeding the market value of TRX itself.

The network is built as a neutral infrastructure, prioritizing throughput, low fees, and reliability, while allowing applications and stablecoins to capture most of the economic value. This design has turned it into one of the most widely used settlement networks, especially for remittances and high-frequency stablecoin transfers.

A bid to become a global settlement layer

Looking ahead, TRON aims to serve as a bridge between traditional finance and blockchain-based settlement. Sun said the network plans to work with major financial institutions and market infrastructure providers, including exchanges and asset managers, to support 24/7 settlement of tokenized dollars and securities.

If assets are to be traded and settled continuously across regions, from Asia to Africa, blockchain rails become unavoidable. In Justin’s view, stablecoins will be central to the transition, and TRON aims to be the network processing this flow.

Scaling for institutional volumes

To support that vision, TRON developers are exploring transaction batching and settlement-layer upgrades aimed at handling institutional-scale volumes more efficiently. Sun said these changes are critical if the network is to support millions of high-value transactions daily without sacrificing speed or cost.

TRON already processes an estimated tens of billions of dollars in daily transfer value, and the founder framed upcoming improvements as preparation for a much larger load rather than speculative growth.

Earlier this week, the network surpassed 4.59 million active accounts, marking a 36% increase month over month. The surge has been driven largely by the firm’s token dominance in USDT settlement and its recent Base integration, even as TRX price action remains under pressure.

High usage, muted price response

Despite growing activity, TRX has struggled to reflect that adoption. The token is trading near $0.29, down on the week, even as daily active accounts and transaction counts continue to rise.

Analysts say TRON’s fee model limits direct TRX demand, pushing growth toward stablecoin activity rather than price appreciation.

Sun acknowledged the gap but maintained that infrastructure-first growth is deliberate. Previous decisions, like cutting network fees by 60% in 2025, were framed as long-term investments in usage rather than short-term revenue optimization.

The founder also said Tron’s long-term ambition is to become a global settlement layer capable of hosting trillions of dollars in real-world financial assets, aligning with initiatives already being explored by major institutions like Nasdaq. 

According to him, traditional stock exchanges are moving toward 24/7, on-chain settlement infrastructure, and TRON aims to position itself as the blockchain network that can support that scale.

Also read: Hyperliquid Slashes Team Payouts 98% to Protect HYPE Floor

Institutional whales and retail investors experienced a market downturn today as XRP’s market cap dropped below $110 billion. The token fell from $1.91 to $1.75 in recent trading sessions amid huge liquidation that wiped out $62 million, with the majority of longs getting wiped out. 

At the time of writing, XRP is trading at $1.76, reflecting a decline of 2.26% over 24 hours. Its total market capitalization stands at $107.5 billion. As the price drops instigate panic selling from weak hands, the 24-hour trading volume has increased by over 45%.

CoinGlass data shows that XRP experienced a major long squeeze, with over $62.2 million in total liquidations over 24 hours. The long positions accounted for about 98%, i.e., $60.99 million of the total wipeout.

There has been a 4.26x liquidation in the 7-day average. The largest single liquidation was about $17.38 million, suggesting a sharp price pullback. The liquidation heat was primarily concentrated on Hyperliquid, which handled over $44 million, roughly 70%, of the total volume, followed by Bybit and Binance.

Technical breakdown

The price drop was further fueled by a “long squeeze,” where the forced selling of the asset due to liquidated positions caused the price to drop faster than it would have otherwise. The token also experienced a technical breakdown, where XRP dropped below its 30-day Simple Moving Average of $2.02 and the 50% Fibonacci retracement level of $2.09. These levels, which were previously a source of support, have now become a strong source of resistance.

Market data from the last quarter shows that XRP had been trying to stabilize above the $2.00 mark as part of its function as a utility bridge for financial institutions. However, the current decline of 6.59% is much worse than the overall crypto market’s 5.54% drop.

Unlike speculative meme coins, XRP’s value is often linked to institutional risk demand. Its faster decline suggests that large holders are reducing their risk by moving into stablecoins or other major coins, seeking safety as the Altcoin Season Index fell by 12.5%.

The Relative Strength Index (RSI) has dropped to 28.29. The lack of huge buying volume shows that market participants are hesitant. Most traders seem to be waiting on the sidelines, looking to see if a deeper bottom forms before investing again.

Bearish signals and RSI levels

TradingView technical gauges have issued a “Sell” signal, backed by a 14-to-0 ratio of bearish to bullish moving averages.

The future implications of this decline focus on the $1.78 swing low and the $110 billion market cap floor. If the total ecosystem valuation falls below this critical point, the liquidation of assets may continue unless buyers purchase the $1.75 level. If XRP is an indicator of institutional fear, then the failure to move above the $2.02 level may signal a long-term downturn for high-utility altcoins.

Also Read: Ethereum Plunges Below $2,700 — Could $2,094 Be Next?

Nubank, one of Brazil’s most valuable companies, received conditional approval from the Office of the Comptroller of the Currency (OCC) to form a U.S. national bank. The approval, announced on Thursday, marks a major step that could expand its role in digital asset custody and crypto-adjacent services.

The move positions fintech to operate directly under U.S. federal oversight rather than relying on partnerships as it scales its presence in the world’s largest financial market.

A regulatory gateway to digital assets

Once fully licensed, Nubank would be able to fill other licenses to offer digital asset custody alongside deposits, cards, and lending. This would place the firm among a small group of federally regulated institutions capable of combining traditional banking with crypto infrastructure in the U.S., a space regulators have historically treated with caution.

The approval remains conditional, with additional sign-offs required from the FDIC and the Federal Reserve. Nubank said it expects to capitalize the bank within 12 months and open it within 18 months, following standard OCC requirements.

US expansion and crypto footprint

The conditional approval strengthens Nubank’s presence in the U.S., where Nu Holdings Ltd. (NU) is already listed on Nasdaq. Shares are trading at $18.02, down 3.92%, as the fintech moves closer to operating under a full federal banking framework.

In 2025, Nubank hired Michael Rihani, formerly of Coinbase, to lead its crypto division. Together, the Nasdaq listing, bank approval, and crypto hires signal a push to expand regulated digital asset services in the U.S.

Institutional strategy over partnerships

By pursuing a full national bank charter, Nubank is opting for direct regulatory alignment instead of operating crypto services through intermediaries. This approach strengthens its credibility with regulators and institutional partners while giving it more control over products such as custody, payments, and potentially tokenized financial services.

Company executives have framed the decision as a long-term infrastructure play rather than a short-term expansion, signaling a focus on compliance-first growth in the U.S.

“When we started over a decade ago, our goal was to prove that technology and design could fundamentally change how people interact with their money. Today, this conditional approval validates our ability to scale that mission into the world’s largest financial market under a comprehensive federal framework,” said David Vélez, Founder and CEO of Nubank.

Global scale behind the US push

Nubank currently serves more than 127 million customers across Brazil, Mexico, and Colombia, where it already operates under strict local regulation. Its U.S. entry builds on that foundation, potentially allowing crypto-related products developed under a federal framework to scale across multiple markets over time.

The strategy also follows recent crypto-focused hires and product expansions, reinforcing the view that Nubank is laying groundwork for deeper digital asset integration rather than treating crypto as a peripheral feature.

Also read: US DOJ Forfeits $400M from Dark Web’s Biggest Cryptocurrency Mixer

Hong Kong is getting ready to officially authorize stablecoin companies. The Hong Kong Monetary Authority (HKMA) is preparing to formally authorize them under its newly implemented Stablecoin Ordinance. The regulator also confirmed that companies can now submit applications to operate legally.

The update was shared by the Secretary for Financial Services and the Treasury, Christopher Hui, during a Legislative Council briefing on Friday. Once approved, companies will be allowed to issue Hong Kong dollar–backed stablecoins under a regulated framework.

Clear rules for stablecoin issuers

The license comes with strict requirements to ensure the system remains safe for users. For instance, the issuer must always have all coins backed by real assets, such as cash and government securities. In addition, they must keep their assets separate from the company’s assets and hold them in a trust account.

Stablecoin holders can redeem their coins at face value without paying extra fees. Companies that have yet to get licensed must also have at least HK$25 million (roughly $3.3 million) in paid-up capital and a physical office in Hong Kong. They also must comply with strict anti-money laundering requirements.

Authorities confirmed that some applications are currently under review, and officials expect to start granting licenses in the first quarter of 2026. Officials say the process is cautious but designed to give businesses a clear roadmap while keeping investors safe.

Expanding crypto oversight

Hong Kong is also preparing to roll out rules for crypto trading platforms, as well as custody services, advisory services, and asset management. A law regarding these areas has already been drafted and will be submitted to the Legislative Council later this year. 

The city is also planning to introduce automatic tax reporting for cryptocurrency transactions starting in 2028, following international rules set by the OECD. This would let authorities share transaction info across borders.

All of these changes in the Hong Kong crypto policies are in line with the country’s 15th Five-Year Plan, which is a strategic roadmap to guide the nation’s economic and social growth as it seeks to maintain its position as the global financial hub.

The changes are designed to protect consumers but also provide a pathway to allow the digital asset market to grow responsibly. Clear rules for reserves, redemption, and custody are meant to prevent market shocks, like those caused by algorithmic stablecoins in other countries.

As a result, Hong Kong is positioning itself as one of the few major financial centers with a clear and regulated path for stablecoin businesses.

Also Read: Why Trump is Taking His Own Government to the Court

The U.S. Securities and Exchange Commission (SEC) has stopped Roundhill ETF Trust from launching its proposed 4x leveraged exchange-traded funds. 

The SEC’s Division of Investment Management sent a formal letter to the firm’s counsel, Morrison Warren, regarding the Roundhill 4X SPY ETF and Roundhill 4X QQQQ ETF filings.

The financial and crypto-asset sectors are closely watching this situation, as it reinforces the agency’s plan to impose a strict leverage cap across all open-end fund structures. 

Under Rule 18f-4, all open-end funds, including those holding crypto-linked derivatives, must keep their Value-at-Risk (VaR) within 200% of a reference portfolio. This means that 2x leveraged crypto ETFs sit at the absolute regulatory limit, leaving little room for tracking error, volatility spikes, or structural complexity.

Violating rule 18f-4 leverage limits

The main concern is related to Rule 18f-4 of the Investment Company Act of 1940, which tries to ensure that the risk level associated with leverage in funds remains under control. According to this rule, the Value-at-Risk (VaR) of an open-end fund cannot exceed 200% of the VaR of a reference portfolio. 

Since the proposed ETFs from Roundhill are focused on offering 4x leverage, meaning 400% of the daily return, the SEC believes that this is not possible while remaining within the permissible leverage ratios.

Administrative rejection and fiduciary concerns

The SEC’s intervention came after Roundhill filed post-effective amendments on January 23, seeking to offer 400% daily exposure to major indices. The regulator stated it will not review these filings in detail until the issues in the letter are addressed, and it asked the firm to voluntarily delay the effectiveness of its filings.

This administrative hurdle serves as a clear rejection, as the SEC questioned how the trust’s directors could fulfill their fiduciary duties while pursuing a strategy that appears to go against federal risk management standards.

Risk baseline calculations

Roundhill reportedly tried to use a different baseline to assess its risk profile in its filings. The agency clarified that if a fund’s goal is to track the performance of an unleveraged index such as the S&P 500, it must use that specific index as its reference portfolio.

The SEC noted that the fund’s reference assets accurately represent the fund’s unleveraged portfolio and are the only proper baseline for calculating leverage risk. While 2x and 3x leveraged ETFs have become common for short-term traders, the SEC has typically been cautious about “super-leveraged” options. 

SEC emphasizes rules for issuers

The reaffirmation of Rule 18f-4 in recent years aimed to establish a clear framework for derivatives use. However, this exchange suggests some issuers thought there might be loopholes for products exceeding the 3x limit. The SEC’s current concerns emphasize that the 200% VaR limit is an unmovable barrier for now.

The SEC has made it clear that “more than 200% (2x) leveraged exposure to underlying indices or securities” is facing challenges under current rules. By refusing to review the Roundhill filings until they align with Rule 18f-4, the commission has effectively limited the leverage available in the ETF wrapper.

Issuers must now choose between withdrawing their filings or fundamentally changing their strategies to comply with the 200% risk limit.

Also Read: Grayscale Files S-1 with U.S. SEC for BNB ETF

The governor of the Czech National Bank (CNB), Aleš Michl, has urged the financial sector to explore Bitcoin and other digital assets in reserves. He said the central bank is taking steps in learning about cryptocurrencies, stablecoins, and tokenized deposits.

In an X post on Friday, Michl wrote, “Don’t fight the future. Build it. Test it. Understand it. See you at @TheBitcoinConf.” He also encouraged banks, investors, and the public to understand these new technologies that could change how traditional financing works.

Don’t fight the future.
Build it. Test it. Understand it.
See you at @TheBitcoinConf.
First central bank testing Bitcoin, USD stablecoins, and tokenised deposits.
Here’s a snapshot of what we’re building at @CNB_cz for the future: https://t.co/9HgMhx4Abp pic.twitter.com/irewD0Qtyj

— Aleš Michl (@MICHLiq_) January 30, 2026

CNB’s push for Bitcoin and digital assets

The comment follows the CNB’s launch of a small Bitcoin and digital asset pilot to learn more about blockchain and the future of finance. The program began in November 2025 with a $1 million test portfolio.

According to the previous report, the goal of the test is not to make any major investment but to understand how the assets work and how they could affect the traditional payment system and reverse management. The project is being done through its special innovation unit called CNB Lab, with a test portfolio including Bitcoin, USD stablecoins, and USD tokenized deposits.

Previously, the bank said Bitcoin was bought on a regulated exchange, and the process took about three weeks because of strict KYC and AML checks. The pilot will test different ways of buying and storing these assets safely. It is also studying how blockchain works in real situations, including key security, approval steps, crisis handling, and compliance rules. The CNB expects a full review of the pilot in the next two to three years.

Michl’s view on Bitcoin 

This is not the first time Governor Michl has been pushing for the adoption of Bitcoin. Last year, he said Bitcoin could be useful for diversifying the bank’s reserves.

“For the diversification of our assets, bitcoin seems good,” he said, adding that it has “zero correlation to bonds” and could be worth considering for a large portfolio. However, he stressed that careful study was still needed before taking any real step in investing.

In another detailed statement, Michl warned that crypto investing is not for everyone. He advised people to be extremely cautious and only invest in things they truly understand. He compared today’s crypto market to the early investment boom in the Czech Republic during the 1990s, when many funds appeared and later collapsed. He explained that the crypto space will likely see both big successes and painful failures.

Michl also made it clear that Bitcoin is highly risky because of its sharp price swings. He said Bitcoin could end up having two extreme outcomes, either becoming very valuable or dropping to zero. Still, he believes central bankers should study it closely instead of ignoring it. “Studying bitcoin won’t harm us – on the contrary, it will strengthen us,” he noted.

CNB flags risks alongside pilot program

The Czech National Bank has recently shared research suggesting Bitcoin could improve returns in some cases. According to CNB backtests, if the bank had held 5% of its reserves in Bitcoin over the past decade, yearly returns could have risen by about 3.5 percentage points. However, volatility would have doubled, showing how unstable such an asset can be.

The CNB also warned citizens about financial dangers. In a recent public notice, the bank urged people to stay alert to fraudsters, online scams, hidden fees, and fake crypto promotions. It also reminded investors not to rely on advice from influencers who may not have their best interests in mind.

Odhalte včas podvodníky a vyvarujte se nástrahám finančního trhu. 🛡️🧨 Praktické rady a užitečné informace, které vám pomohou lépe se orientovat ve světe financí, u nás nově najdete na jednom místě! 👇🏻

➡️ https://t.co/sX4dKsDm5b ⬅️

ONLINE PODVODY
Podvodníci přicházejí s čím dál… pic.twitter.com/opakZkBNeT

— Česká národní banka (@CNB_cz) January 30, 2026

“Always remember to verify the identity of the other party. We regularly issue warnings about entities that show signs of fraud or do not hold the appropriate authorisation from the CNB,” the bank said.

For now, the Bitcoin test remains small, controlled, and focused on learning. The bank says the pilot is meant to gain real experience with blockchain processes, while the final evaluation will take place over the next two to three years.

Also Read: U.S. Government Builds Cash Reserves Ahead of Possible Shutdown

Ethereum Co-Founder Vitalik Buterin is accelerating efforts to protect digital privacy and self-sovereignty. In a detailed post on X, he announced that he has withdrawn 16,384 ETH to fund open, secure, and verifiable technology. 

Buterin stressed that Ethereum isn’t just about making quick money. He wants apps and systems that run fairly, without fraud, censorship, or middlemen. His plan covers all kinds of tech—from finance and government tools to messaging and health apps—using secure hardware, operating systems, and blockchain systems that keep users in control and protect their privacy.

In these five years, the Ethereum Foundation is entering a period of mild austerity, in order to be able to simultaneously meet two goals:

1. Deliver on an aggressive roadmap that ensures Ethereum's status as a performant and scalable world computer that does not compromise on…

— vitalik.eth (@VitalikButerin) January 30, 2026

Besides funding these projects, Buterin said he would personally handle tasks that usually fall under the Ethereum Foundation’s special projects. He explained that his goal is to keep Ethereum’s core mission strong while ensuring the Foundation can operate long-term. 

“Ethereum everywhere is nice, but the primary priority is Ethereum for people who need it,” Buterin wrote, highlighting that user control matters more than corporate-style growth.

Ethereum’s 2025 achievements and current challenges

Ethereum achieved big technical improvements in 2025. It could handle more transactions, store more data, and run nodes faster. On top of that, zkEVMs brought major speed and efficiency boosts. Combining zkEVMs with PeerDAS marked Ethereum’s biggest step yet toward becoming a completely new kind of blockchain.

Despite all these improvements, Buterin stated that there are still challenges that face Ethereum. Therefore, he encouraged the team of developers to look forward to their long-term goals instead of seeking fast solutions for the blocks. Currently, the Ethereum roadmap has prioritized privacy, censorship resistance, and openness as opposed to seeking more growth and control.

Buterin has also been a contributor to privacy-focused initiatives in his past. In November 2025, Buterin donated 128 ETH each to decentralized messaging applications Session and SimpleX Chat. In his post, Buterin hailed these applications because of their permissionless account creation feature alongside metadata privacy, citing them as “critical next steps in enabling encrypted communication.” 

Encrypted messaging, like @signalapp, is critical for preserving our digital privacy. Two important next steps for the space are (i) permissionless account creation and (ii) metadata privacy.@session_app and @SimpleXChat are two messaging apps pushing these directions forward.…

— vitalik.eth (@VitalikButerin) November 26, 2025

In August, Buterin also donated 200 ETH to the Animal Welfare Fund of Effective Altruism Funds. It is also worth noting that the Ethereum Foundation currently manages crypto assets valued at roughly $558 million, per blockchain analytics firm Arkham, while Vitalik Buterin personally holds around $666 million.

Innovative technical approaches

Buterin’s latest efforts have coincided with Ethereum’s focus on quantum-resistant cryptography and distributed validator technology. Validators could now operate across multiple machines, ensuring the network remained resilient and simplifying the technical burden on large ETH holders.

Under one key, every validator could create up to 16 virtual identities with ease for participation but in an un-centralized manner. “This design is extremely simple from the user’s point of view,” Buterin explained.

These upgrades also help Ethereum rely less on central servers or outside coordination. By adding distributed validator technology directly into staking, the network becomes more secure and avoids risks from a single point of failure. This fits Ethereum’s bigger goal: building tech that gives power to users, not big companies.

Community response

The Ethereum community responded positively to Buterin’s vision. Candide Labs’ Marc commented, “We stay the course on the hard road: open source, verifiable, and built for the walkaway test. We are intentionally building a product that allows you to leave us.” 

There is a specific kind of pressure that comes with building on Ethereum that nobody tells you about. It’s the constant, logical whisper that says: Just centralize it.

We look at our competitors. The ones with 100x our resources. They aren't smarter than us, but they are… https://t.co/YDTBc3j17H

— marc (@heymarcopolox) January 30, 2026

Similarly, Ismail Amara, Marketing Lead at HederaHacks, highlighted that Ethereum’s true leverage lies in user-facing infrastructure like wallets, key management, and secure devices. He emphasized, “Effort should concentrate on making self-custody boring, privacy non-optional, and exit costs from centralized systems near zero.”

These responses show a common belief: Ethereum is valuable because it gives people control, not because it makes big companies richer. The focus is on privacy, personal freedom, and tech you can trust.

Also Read: Ethereum Plunges Below $2,700 — Could $2,094 Be Next?

The U.S. President Donald Trump has nominated former Federal Reserve governor Kevin Warsh as the next Chair of the Federal Reserve, ending weeks of speculation over who would replace Jerome Powell when his term expires in May.

The announcement was made on Friday, with Trump saying on his Truth Social platform that Warsh would be “one of the great Fed chairmen” and praising his understanding of the economy and interest rate policy.

Financial markets reacted cautiously. The US dollar trimmed early gains, Treasury yields moved slightly higher, and stock futures pointed to a softer open on Wall Street.

Markets react with caution

Investors showed little sign of panic following the announcement, largely because Warsh had been widely tipped as a frontrunner in recent weeks.

US two-year Treasury yields rose modestly before easing, while longer-dated yields were little changed. The USD initially strengthened but later gave up gains as traders assessed what the appointment could mean for future rate decisions.

Market participants said the muted reaction reflected uncertainty over how Warsh would act once in office, especially given the Federal Reserve’s committee-based decision-making structure.

Why Trump picked Warsh

Warsh served as a Federal Reserve governor from 2006 to 2011 and played a role in policy decisions during the global financial crisis. Since then, he has been a frequent critic of the Fed’s large balance sheet and long period of ultra-loose monetary policy.

Trump has repeatedly criticized the central bank for keeping interest rates too high and slowing economic growth. Warsh has recently echoed similar views, saying the Fed has been slow to adjust policy as inflation pressures ease.

In December, Trump publicly said that Warsh believed rates should be lower, a comment that signalled his growing support for the former Fed official.

Unlike some other names linked to the role, Warsh is seen as having both policy experience and credibility in financial markets, reducing fears of a politically driven appointment.

What it means for crypto markets

Crypto traders are keeping a close eye on the nomination, even though it’s not expected to have an immediate impact on the market.

Warsh has long been critical of extended easy-money policies and has warned that too much liquidity tends to inflate asset bubbles. That view isn’t especially friendly for crypto, which has historically done best when monetary conditions are loose and liquidity is flowing freely.

However, his more recent comments suggest a softer tone. Warsh has acknowledged slowing inflation and has indicated that rate cuts may be appropriate if economic growth weakens.

For crypto markets, the picture is mixed. On one hand, lower interest rates usually help assets like Bitcoin by improving liquidity and risk appetite. On the other, Warsh’s long-held view that the Fed should shrink its balance sheet could cap any major upside.

For now, traders are paying far more attention to inflation numbers and signals on when rate cuts might begin, rather than the Fed chair appointment itself.

Background on Warsh

Warsh previously served as a senior economic adviser in the George W. Bush administration and represented the Federal Reserve at G20 meetings. He is currently a lecturer at Stanford’s Graduate School of Business and has ties to several major investment firms.

He is married to Jane Lauder, granddaughter of the iconic fashion businesswoman Estée Lauder, and has longstanding connections across Wall Street and Washington.

Warsh’s nomination now heads to the U.S. Senate for confirmation. If approved, he will take over the central bank at a time when markets are increasingly sensitive to signals around interest rates, inflation, and liquidity conditions.

Also Read: Why Trump is Taking His Own Government to the Court

U.S. markets are under pressure as the government builds up cash reserve ahead of a possible shutdown. BitMEX Co-Founder Arthur Hayes noted that Bitcoin’s recent dip reflects a big drop in dollar liquidity.

According to Hayes, roughly $300 billion in dollar liquidity has exited markets in recent weeks, with a $200 billion spike in the Treasury General Account (TGA) being the primary driver. The TGA, the government’s main cash reserve held at the Federal Reserve, appears to be stockpiled to sustain federal operations if budget negotiations stall. 

Hayes noted on X, “Roughly $300bn fall in $ liq over past few weeks driven mostly by $200bn rise in TGA, gov could be raising cash balances to fund spending in case of shutdown. $BTC falling not a surprise given the fall in $ liquidity.”

Roughly $300bn fall in $ liq over past few weeks driven mostly by $200bn rise in TGA, gov could be raising cash balances to fund spending in case of shutdown. $BTC falling not a surprise given the fall in $ liquidity. pic.twitter.com/ctPjWd8188

— Arthur Hayes (@CryptoHayes) January 30, 2026

Tighter liquidity often puts pressure on risky assets like stocks and crypto. The .USDLIQ U Index fell from 11.687 million in July 2025 to 10.881 million by January 2026. After hitting a high of 11.789 million in August, the index dropped sharply, saw a few short-lived recoveries, and became more volatile toward the end of the year.

Consequently, Bitcoin, a proxy for market liquidity, has experienced a 14% correction in just two weeks. Analyst Brain commented, “BTC at 82,458 is the ultimate liquidity proxy. TGA at 952 billion dollars is a reserve vacuum. Tomorrow’s shutdown risk at 81 percent odds keeps things risk off.”

Shutdown risks and market implications

According to prediction market platform Polymarket data, the probability of a shutdown on January 31 stands at 71%, with total bets surpassing $29 million. The potential impasse revolves around Democratic opposition to Department of Homeland Security funding. Senate Minority Leader Chuck Schumer stated, “I will vote no on any legislation that funds ICE until it is reined in and overhauled.”

Despite the risk, the situation differs from October 2025’s record 43-day shutdown. Six spending bills have been signed this year, and key departments like Agriculture, Veterans Affairs, Commerce, and Energy already secured funding. DHS holds $178 billion from last year’s “One Big Beautiful Bill Act,” which could allow operations to continue largely uninterrupted.

Crypto analyst CryptoOracle previously said that government shutdowns usually suck liquidity out of markets first, then put it back later, often causing Bitcoin to drop 30–40%. He pointed to last October’s shutdown, saying BTC could fall into a ‘fear zone’ between $65,000 and $75,000. 

History supports this as per Bitbo data, from 2011 to 2015, Bitcoin rose when U.S. Treasury yields were stable or falling. During the 2020 COVID crash, yields plunged, Bitcoin dipped briefly, then bounced back as investors looked for alternative assets.

Liquidity trends driving crypto volatility

Apart from the government’s cash hoarding, another factor that shows that the crypto market is really under pressure is the general liquidity in the market. The .USDLIQ U Index confirms this dropping by nearly 7% over the last six months. Although some minor increases have been recorded, they have not been sustained, and volatility has picked up towards the end of 2025 and early 2026.

Analyst Brain also pointed out that Bitcoin has the potential to drop even further if its price goes lower than 80,951. Furthermore, since many traders are holding leveraged positions, the market has the potential to move either way.

The U.S. government is hoarding cash ahead of a possible shutdown, putting pressure on risky assets like Bitcoin. Prices might stay shaky for now, but once the situation clears, markets could bounce back strongly.

Also Read: CFTC Signals Reset for Polymarket, Kalshi as Fed vs States Clash Rises