Cointelegraph

Paul Atkins, chair of the US Securities and Exchange Commission (SEC), didn’t rule out the possibility of authorities seizing Venezuela’s reported Bitcoin holdings after US forces unseated and captured the country’s president.

In a Monday interview with Fox Business’ Stuart Varney, Atkins responded to reports claiming that Venezuela holds up to $60 billion worth of Bitcoin (BTC), though several analysts said they were unable to verify these claims. The SEC chair said it “remains to be seen” what action, if any, the US would take if it had the opportunity to seize the reported 600,000 BTC. 

“I leave that to others in the administration to deal with — I’m not involved in that,” said Atkins in response to a question on whether the US would “take those Bitcoin off ‘em.”

Reports of Venezuela’s Bitcoin holdings surfaced after US forces, at the direction of President Donald Trump, captured then-President Nicolás Maduro last week and removed him to the United States to face criminal charges in New York. 

As of the time of publication, blockchain analysts and intelligence platforms had not confirmed the reported $60 billion in crypto, but the Maduro regime had previously been involved with aspects of the industry. For example, the country launched an oil-backed digital currency in 2018.

Senate to hold market structure markup on Thursday

Atkins’ remarks came a few days before the US Senate Banking Committee is scheduled to hold a markup on the Digital Asset Market Clarity Act, or CLARITY.

House of Representatives lawmakers passed the bill in July, and it has been under review in the Senate for months, likely slowed by a 43-day government shutdown in October and November.

Banks and some crypto companies have also expressed concerns about provisions dealing with stablecoin rewards within the draft bill, and many Democrats are reportedly calling for stronger ethics guardrails and clarification on decentralized finance.

The bill could be delayed amid campaigning for the 2026 midterm elections and another potential government shutdown at the end of January. However, early drafts of the legislation showed lawmakers were attempting to give the Commodity Futures Trading Commission more authority to regulate digital assets.

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

Credit rating company Fitch Ratings has flagged a high degree of risk associated with Bitcoin-backed securities, a warning that could complicate the expansion of crypto-linked credit products among institutional investors.

In a Monday assessment, Fitch said Bitcoin-backed securities, financial instruments typically structured by pooling Bitcoin (BTC) or Bitcoin-linked assets and issuing debt against that collateral, carry “heightened risks” that “are consistent with speculative-grade credit profiles.”

The agency said such characteristics could place the products in speculative-grade territory, a designation associated with weaker credit quality and a higher likelihood of losses.

As one of the three major US credit rating companies, Fitch’s evaluations play an influential role in how banks, asset managers and other institutions assess emerging financial instruments, particularly those tied to volatile asset classes.

Fitch pointed to the “inherent” price volatility of Bitcoin as well as counterparty risks embedded in these structures.

The agency also referenced the wave of crypto lender failures during the 2022–2023 downturn, likely a reference to BlockFi and Celsius, as cautionary examples of how quickly collateral-backed models can unravel during periods of market stress.

Source: DustyBC Crypto

“Bitcoin’s price volatility is a main risk consideration,” Fitch said, warning that breaches of coverage levels could rapidly erode collateral value and crystallize losses. 

Coverage levels refer to the ratio of Bitcoin collateral to the amount of debt issued against it. Sharp price declines can cause that ratio to fall below required thresholds, triggering margin calls and forced liquidations.

The latest assessment follows an earlier warning from Fitch last month, when the agency cautioned US banks about elevated risks tied to significant digital asset exposure. At the time, Fitch cited potential reputational, liquidity and compliance risks for banks that are actively engaged in crypto-related activities.

Bitcoin’s growing role in corporate credit, and where Fitch draws the line

Bitcoin has increasingly become central to the credit profiles of public companies with large digital asset holdings, particularly those issuing convertible notes or secured debt.

A prominent example is Strategy, led by Michael Saylor, which has amassed nearly 688,000 Bitcoin.

The company has financed this strategy through repeated capital raises, including convertible notes, secured debt and equity issuances, to expand its Bitcoin exposure. As a result, Strategy’s balance sheet and credit profile are now correlated with movements in Bitcoin’s market price.

Fitch’s warning, however, appears to focus more narrowly on credit and securitized instruments where repayment is directly dependent on the value of underlying collateral. The assessment does not reference spot Bitcoin exchange-traded funds, which are structured as equity-like investment vehicles rather than credit products.

In fact, Fitch noted that ETF adoption could contribute to “a more diverse holder base,” a development that may “potentially dampen” Bitcoin’s price volatility during periods of market stress.

The strengths and weaknesses of BTC-backed securities. Source: Fitch Ratings

Bitmine Immersion Technologies expanded its Ether holdings over the past week as its chairman urged shareholders to approve a proposal that would allow the company to further build its crypto treasury and staking operations.

The company said it purchased 24,266 Ether (ETH) over the past week, lifting its total crypto holdings to about 4.17 million ETH, or 3.4% of the token’s circulating supply.

According to Monday’s announcement, the company reported about $14 billion in combined crypto and cash holdings, including $988 million in cash. In addition to ETH, it holds 193 Bitcoin (BTC) and a $23 million stake in Eightco Holdings.

Bitmine also expanded its staking activity, with about 1.26 million ETH currently staked, up 596,864 ETH from the prior week. Staking involves locking cryptocurrency to help run a blockchain network in return for yield. Bitmine is working on its own staking platform, with plans to deploy it in early 2026.

The update also brought renewed calls from Tom Lee for shareholder approval of an increase in authorized shares, which the company says is needed to support its strategy, ahead of its annual meeting scheduled for Thursday in Las Vegas.

Lee said the company’s charter requires approval from a majority of outstanding shares and warned that without additional authorization, Bitmine’s ability to continue acquiring Ether could be limited.

Bitmine shares were up 3% in early trading, according to Yahoo Finance data, while Ether (ETH) was trading near $3,100, down 3.3% over the past seven days.

Source: Yahoo Finance

Bitmine, Strategy dominate digital asset treasury companies

2025 saw a wave of digital asset treasury companies emerge, as entities adopted strategies centered on holding Bitcoin, Ether and other cryptocurrencies on their balance sheets. While hundreds of companies have entered the space with varying approaches, treasury holdings have become highly concentrated.

According to data from CoinGecko, Bitmine has established itself as the largest Ether treasury company by a wide margin, holding 4,167,768 ETH valued at nearly $13 billion, compared with Sharplink, the second-largest holder, which reports 864,840 ETH and The Ether Machine, which holds just under 500,000 ETH.

Top five Ether treasury companies. Source: CoinGecko

On the Bitcoin side, Strategy, led by Michael Saylor, continues to dwarf other corporate holders after pioneering the Bitcoin treasury model in 2020. The company holds 687,410 BTC, according to BitcoinTreasuries.NET, far ahead of Mara Holdings Inc. with 53,250 BTC and Twenty One Capital with 43,514 BTC.

Top five Bitcoin treasury companies. BitcoinTreasuries.NET

Neither company has shown any signs of slowing down. Last week, Strategy added 13,627 BTC to its balance sheet at a cost of $1.25 billion, marking its largest Bitcoin purchase since July. Bitmine has said it is targeting ownership of 5% of Ether’s total supply, or about 6 million ETH.

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

Ether’s (ETH) futures and spot markets are sending mixed signals as futures positioning builds, but the altcoin’s price fails to make new highs. Data suggested that ETH traders are adding to their exposure even as spot buying underpins the recovery.

Key takeaways:

Ether’s estimated leverage ratio fell from an all-time high of 0.79 on Jan. 2 to 0.67 by Jan. 11, despite rising open interest.

Aggregate spot CVD increased with the rally, indicating spot-led demand with a bullish positioning bias.

Ether open interest rebounds, but the price lags

Aggregated open interest (OI) for Ether futures has returned to levels seen before its 38% drawdown in Q4 2025, while ETH still trades roughly 27% below its October 10, 2025, opening price. This divergence suggests traders are rebuilding exposure.

Ether open interest and price. Source: X

Supporting this view, Ether’s estimated leverage ratio peaked at 0.79 on Jan. 2 before falling to 0.67 by Jan. 11. While OI continues to rise, the decline in leverage pointed to healthier positioning and a lower risk of cascading liquidations.

Meanwhile, the latest rally has been driven by rising spot cumulative volume delta (CVD), rather than the futures CVD. This indicates net market buying in the spot market, which is typically associated with more durable price moves. The long/short accounts ratio holding near 2.66 reflects a bullish skew, without signs of traders aggressively jumping into the market.

ETH price, spot CVD, futures CVD, and long/short ratio. Source: Coinalyze

Related: Standard Chartered said to plan crypto brokerage, trims ETH forecast

ETH Staking flows, and macro signals add tailwinds

Onchain data shows growing long-term conviction. Lookonchain reported that BitMine staked 110,000 ETH worth $340 million on Jan. 12, bringing its three-week total to roughly $3.7 billion. At a 2.8% yield, this could generate nearly $95 million in ETH annually for the company. 

From a market structure point of view, Max, CEO of BecauseBitcoin, noted that the Russell 2000 has historically led ETH into price discovery. With the index hitting a new all-time high at 2,664, conditions may favor expansion for ETH in the coming weeks.

Russell 2000 and ETH historical price comparison. Source: Max/X

Echoing that view, crypto investor Jelle said Ether turning a major weekly resistance into support “feels pretty big,” adding that a strong higher low after last year’s crash leaves $4,000 as the key hurdle. Above it, ETH “could finally have its moment,” noted the investor. 

Related: Bank of Italy models Ethereum risks if ETH value collapsed

Cryptocurrency infrastructure platform Bakkt Holdings announced an agreement to purchase Distributed Technologies Research, a stablecoin and fiat payments infrastructure provider.

In a Monday notice, Bakkt said the agreement will have the company issue more than nine million shares of its Class A common stock to Distributed Technologies Research shareholders. At the time of publication, the price of shares of Bakkt Holdings (BKKT) on the New York Stock Exchange was $19.54, having surged more than 20% in the previous 24 hours, which would would make the deal worth more than $178 million. 

“The acquisition will allow Bakkt to consolidate a critical piece of its stablecoin settlement infrastructure and prepares the company to launch its neobanking strategy with multiple distribution partners in the coming months,” said Mike Alfred, the director and member of the special committee of Bakkt’s board.

Source: Bakkt

Intercontinental Exchange, the parent company of the New York Stock Exchange and a 31% shareholder of Bakkt’s Class A common stock, will vote in favor of the deal. Akshay Naheta, who founded Distributed Technologies Research in 2022, will remain CEO of Bakkt following the merger.

According to Bakkt, the merger was part of a strategy to form a “unified financial infrastructure platform” and expand its payment and banking use cases in 2026. The company said the deal was subject to regulatory and shareholder approval.

Crypto deals, acquisitions hit record high in 2025

According to a December Financial Times report, the crypto and blockchain industry saw $8.6 billion worth of deals in 2025. Among the most significant of the acquisitions included crypto exchange Coinbase buying options trading platform Deribit for $2.9 billion, Kraken buying Ninjatrader for $1.5 billion, and Ripple Labs acquiring Hidden Road for $1.2 billion.

Two weeks into 2026, other crypto companies have made similar moves. Fireblocks acquired crypto accounting platform TRES for $130 million and Coincheck purchased digital asset manager 3iQ for $112 million. The latter deal is expected to close in the second quarter.

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

Bitcoin (BTC) onchain data shows BTC whales are active as the price attempts to extend its breakout from the $90,000 level.

Key takeaways

Bitcoin whale spending surged to $286 million, the largest spike since early November.

Momentum indicators are bullish, but volatility is likely this week. 

Data from Capriole Investments indicated that OG Whale spent value, i.e., Bitcoin moved after remaining dormant for more than seven years, jumped to roughly $286 million on Jan. 10. This marked the strongest resurgence in old-coin activity since November 3, 2025, when the metric spiked near $570 million and coincided with BTC’s market correction. 

BTC OG Whale Spent Value. Source: Capriole Investments

While such movements often raise fears of distribution, the OG whale activity reflects strategic profit-taking rather than panic selling. 

Despite this, onchain data suggested Bitcoin remained in a better position to absorb this supply. According to Glassnode, long-term holder distribution has decelerated sharply with net outflows rolling over from previously extreme levels, signaling that much of the overhead supply from older coins may already be worked through.

A recent report from Cointelegraph also highlighted multiple signals pointing to a slowdown in long-term selling pressure, which could lead to price expansion. Likewise, accumulator addresses, wallets that consistently buy without distributing, have continued to add BTC in 2026, amassing nearly 136,000 BTC in just 11 days this month.

Bitcoin accumulator addresses demand. Source: CryptoQuant

Related: Fed rate cuts under fire: 5 things to know in Bitcoin this week

Bullish signals flash for BTC, but volatility remains in play

From a technical standpoint, Bitcoin’s momentum structure continues to improve. BTC’s 5-day MACD has flipped bullish, a setup last seen near the 2022 bear market bottom. Previously, this signal preceded a rally of more than 430%, noted by crypto commentator Myles G.

BTC’s 5-day MACD bullish reversal analysis. Source: X/Myles G

However, traders cautioned that near-term pullbacks remain part of Bitcoin’s price action. BTC trader Killa noted that for seven consecutive months, BTC has averaged a 5% dip below the 14th weekly open candle, a pattern that could briefly drag price toward the $86,000 to $87,000 zone.

Meanwhile, crypto analyst OSHO highlighted improving order book dynamics. Aggregated liquidity data shows buyers gaining the upper hand, with bid-side liquidity outweighing asks across spot and futures markets. Liquidity is also clustering between $89,200 and $89,700, setting a critical pivot after the New York session.

Bitcoin liquidity levels. Source: X

If demand holds, Bitcoin’s ability to absorb OG whale supply could still fuel a push toward the $100,000 psychological level. That move may first require a liquidity sweep below $89,000, with price acceptance in the $89,000 to $87,000 range acting as the key signal.

Bitcoin four-hour chart. Source: Cointelegraph/TradingView

A strong rebound from that zone would indicate passive bids have been filled, opening the door to a $100,000 test as early as next week. Failure to do so increases the risk of a deeper pullback toward $86,000, with external liquidity near $84,000 as the longer-term target.

Related: Strategy makes biggest Bitcoin purchase since July 2025, adds $1.25B in BTC

VelaFi, a stablecoin-based financial infrastructure company under Galactic Holdings, has raised $20 million in a Series B round to support the expansion of its enterprise payments and settlement services across Latin America, the United States and Asia.

According to Monday’s announcement, the round was led by XVC and Ikuyo, and brings the company’s total funding to more than $40 million.

Founded in 2020, VelaFi provides payments infrastructure that connects local banking systems, global transfer networks and stablecoin protocols. Its services include fiat on- and off-ramps, cross-border payments, foreign exchange workflows and multi-currency treasury operations, which are offered through its platform and via APIs.

The company said the new funding will be used to support geographic expansion and licensing efforts, as well as to further develop its payments and settlement infrastructure for cross-border business use.

Founded in 2020, VelaFi built its early operations in Latin America before expanding into the United States and Asia.

In October, the company entered the Japanese market and announced it will participate as a co-organizer of the Stablecoin Settlement Association, an initiative aimed at modernizing the country’s trade finance infrastructure.

Inflation and remittances drive stablecoin adoption in Latin America

While VelaFi focuses on enterprise stablecoin payments, retail use of stablecoins has also expanded across Latin America, driven by persistent inflation and the region’s reliance on remittances.

According to a Chainalysis report, stablecoin purchases accounted for more than half of all exchange purchases involving the Colombian peso, Argentine peso and Brazilian real from July 2024 to the end of June 2025.

Central Bank of Brazil President Gabriel Galipolo said in February 2025 that stablecoins dominate domestic crypto activity, estimating that roughly 90% of crypto transactions are tied to dollar-pegged tokens.

At the same time, institutional interest in the region has continued to build. In November, Tether, the issuer of the largest stablecoin by market capitalization, invested in Parfin, a London- and Rio de Janeiro–based company, in a move to expand USDt’s (USDT) role in Latin America’s institutional digital asset market.

Despite rising stablecoin adoption across the region, some central banks have voiced caution. Mexico’s central bank recently said that stablecoins could pose risks to financial stability, pointing to their rapid growth, increasing links to the traditional financial system and regulatory gaps that could enable arbitrage and amplify market stress.

Magazine: One metric shows crypto is now in a bear market: Carl ‘The Moon’

Key points:

Bitcoin could reach the $94,789 level, where the bears are expected to step in.

Select major altcoins are showing strength, indicating that the recovery may continue for some more time.

Bitcoin (BTC) bulls have pushed the price above $92,000, but higher levels may attract sellers. The net outflows of $1.37 billion from BTC exchange-traded funds from Tuesday to Friday last week, according to SoSoValue data, show that institutional investors remain cautious.   

Fidelity Investments director of global macro Jurrien Timmer said in a post on X that BTC is “following the internet S-curve a lot closer now than the power law curve.” He added that if BTC consolidates for the next year, then the $65,000 level “could become a do-or-die line in the sand” for BTC.

Crypto market data daily view. Source: TradingView

Irrespective of the near-term uncertainty, the world’s largest corporate BTC holder, Strategy, added 13,627 BTC to its balance sheet last week at an average price of $91,519 per coin. That boosts the company’s holdings to 687,410 BTC, acquired at an average price of $75,353 per coin.

Could BTC and the major altcoins break above their overhead resistance levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out. 

S&P 500 Index price prediction

The S&P 500 Index (SPX) rallied to a new all-time high on Friday, signaling the resumption of the uptrend.

SPX daily chart. Source: Cointelegraph/TradingView

The upsloping moving averages and the relative strength index (RSI) in the positive territory indicate an advantage to buyers. There is resistance at the 7,000 level, but it is likely to be crossed. The index could then surge to 7,290.

Time is running out for the bears. They will have to yank the price below the 50-day simple moving average (6,819) to weaken the bullish momentum. The index could then drop to the 6,720 level.

US Dollar Index price prediction

The US Dollar Index (DXY) cleared the 50-day SMA (99.06) on Friday, but the bulls could not sustain the higher levels.

DXY daily chart. Source: Cointelegraph/TradingView

The index has slipped to the 20-day exponential moving average (98.60), which is likely to act as support. If the price rebounds off the 20-day EMA, it increases the possibility of a rally to the overhead resistance at 100.54. A close above the 100.54 level signals the start of a new up move.

Sellers are likely to have other plans. They will attempt to pull the price below the 20-day EMA. If they do that, the index could slide to the solid support at 97.74. That suggests the index may remain inside the 96.21 to 100.54 range for some more time.  

Bitcoin price prediction

BTC’s pullback from the $94,789 resistance took support at the moving averages, indicating buying on dips. 

BTC/USDT daily chart. Source: Cointelegraph/TradingView

The bulls will try to strengthen their position by pushing the Bitcoin price above the $94,789 level. If they succeed, the BTC/USDT pair could surge to the $100,000 level and then to $107,500. Such a move suggests the corrective phase may be over.

On the contrary, if the price turns down from $94,789 and breaks below the moving averages, it signals that the bears remain active at higher levels. That could keep the pair stuck inside the $84,000 to $94,789 range for some more time.

Ether price prediction

Ether (ETH) has turned up from the 20-day EMA ($3,088), indicating that the bulls are attempting to seize control.

ETH/USDT daily chart. Source: Cointelegraph/TradingView

A close above the resistance line tilts the advantage in favor of the buyers. The ETH/USDT pair could rally to $3,569 and later to $4,000.

On the other hand, if the price turns down from the resistance line and breaks below the moving averages, it suggests that the pair may remain inside the triangle for a few more days. The bears will gain the upper hand on a break below the support line. The Ether price could then collapse to $2,623.

XRP price prediction

Buyers are attempting to maintain XRP (XRP) above the moving averages, but the bears have kept up the pressure.

XRP/USDT daily chart. Source: Cointelegraph/TradingView

If the price dives below the moving averages, it suggests that the XRP/USDT pair may remain inside the descending channel pattern for a while longer. The $1.61 level is the crucial support to watch out for on the downside. A break and close below the $1.61 level increases the risk of a drop to the Oct. 10 low of $1.25. 

Buyers will have to propel the XRP price above the downtrend line to signal a short-term trend change. The pair could soar to $2.70 and subsequently to $3.10.

BNB price prediction

BNB (BNB) has been trading inside a narrow range between the moving averages and the $928 overhead resistance. 

BNB/USDT daily chart. Source: Cointelegraph/TradingView

The upsloping 20-day EMA ($887) and the RSI in the positive zone increase the likelihood of an upside breakout. If that happens, the BNB/USDT pair will complete a bullish ascending triangle pattern. The BNB price could then rally to the target objective of $1,066.

On the contrary, if the price turns down and breaks below the moving averages, it suggests that the bears are fiercely defending the $928 level. That could pull the pair down to the uptrend line and then to the $790 support.

Solana price prediction

Solana (SOL) turned up from the moving averages and has reached the $147 level, where the bears are expected to step in.

SOL/USDT daily chart. Source: Cointelegraph/TradingView

The upsloping 20-day EMA ($134) and the RSI above the 64 level suggest the path of least resistance is to the upside. A close above the $147 resistance could start a new up move to $172.

Instead, if the Solana price turns down and breaks below the moving averages, it indicates that the SOL/USDT pair could extend its stay inside the $117 to $147 range for a while longer.

Dogecoin price prediction

Dogecoin (DOGE) is witnessing a tough battle between the bulls and the bears at the moving averages.

DOGE/USDT daily chart. Source: Cointelegraph/TradingView

The flattish moving averages and the RSI near the midpoint do not give a clear advantage either to the bulls or the bears. If the price slumps below the moving averages, the DOGE/USDT pair could descend to $0.13 and then to $0.12. 

On the upside, a break and close above the $0.16 resistance signals that the market has rejected the break below the $0.13 support. The Dogecoin price could rally to $0.19 and thereafter to $0.22.

Cardano price prediction

Buyers are attempting to maintain Cardano (ADA) above the moving averages, but the weak bounce heightens the risk of a breakdown.

ADA/USDT daily chart. Source: Cointelegraph/TradingView

If the price skids below the moving averages, the ADA/USDT pair could drop to $0.37 and then to $0.33. Buyers are expected to aggressively defend the $0.33 level, as a break below it could sink the pair to the Oct. 10 low of $0.27.

The first sign of strength will be a break and close above $0.44. The Cardano price could then rally to the breakdown level of $0.50, which is a critical resistance to watch out for. Buyers will have to pierce the $0.50 level to signal a comeback.

Bitcoin Cash price prediction

Buyers attempted to push Bitcoin Cash (BCH) above the $670 resistance on Sunday, but the bears held their ground.

BCH/USDT daily chart. Source: Cointelegraph/TradingView

The bears are attempting to strengthen their position by pulling the Bitcoin Cash price below the 20-day EMA ($619). If they do that, the BCH/USDT pair could tumble to the 50-day SMA ($586). Buyers are expected to defend the 50-day SMA, as a close below it suggests that the breakout above $631 may have been a bull trap. The pair may then plummet to $518.

Contrarily, if the price turns up from the moving averages and breaks above $670, it signals that buyers remain in charge. The pair could then ascend to $720, which is expected to act as a solid resistance.

Despite a weak finish to 2025 for digital asset markets, the sector appears to be undergoing a structural shift, moving away from retail-led momentum trading toward one increasingly shaped by institutional capital flows and long-term strategic positioning.

That was a key takeaway from a recent macro weekly report by Binance Research, which pointed to a “structural pivot” underway across digital asset markets. The report highlighted potential drivers including sovereign accumulation in emerging markets and legislative efforts in the United States to establish a strategic digital asset reserve.

Following the approval of US spot Bitcoin (BTC) exchange-traded funds in early 2024, the market has now entered what Binance Research described as a “second round” of institutional adoption, characterized by deeper engagement from traditional financial institutions.

As evidence of this shift, Binance cited recent S-1 registrations by Morgan Stanley for Bitcoin and Solana (SOL) ETFs. The move suggests that leading Wall Street companies are beginning to act not only as distribution channels, but also as product originators in digital asset markets.

Binance Research said this early positioning could pressure rivals such as Goldman Sachs and J.P. Morgan to follow suit to avoid falling behind in an emerging asset management segment.

Another development highlighted in the report involved digital asset treasury (DAT) companies, which faced the risk of exclusion from the MSCI Index, a scenario that could have triggered $10 billion in forced selling across the sector.

That risk eased last week after MSCI said it would not remove DAT companies from its market index, at least for now.

Source: Dylan LeClair

Related: Wall Street’s crypto debate is over as banks go all-in on BTC, stablecoins, tokenized cash

Macro forces, rotation could support digital asset markets in 2026

Binance Research also pointed to the broader macro backdrop as a supportive factor, noting that diversification away from concentrated exposure to large-cap technology stocks could create tailwinds for digital assets to play a larger role in diversified investment portfolios.

The rationale is partly rooted in last year’s elevated valuations among the so-called Magnificent Seven technology stocks, where enthusiasm around artificial intelligence drove a sharp concentration of returns. 

In 2025, the 10 largest companies in the S&P 500 accounted for about 53% of the index’s total gains, underscoring growing concerns about crowding risk in traditional equity markets.

This level of concentration could encourage investors to seek diversification beyond mega-cap equities, with digital assets potentially benefiting from incremental accumulation. 

Meanwhile, participants continue to debate Bitcoin’s trajectory relative to its four-year cycle, with some saying the rally didn’t end at its October peak of $126,000. 

Source: Hunter Horsley

Related: Crypto’s 2026 investment playbook: Bitcoin, stablecoin infrastructure, tokenized assets

Bitcoin (BTC) is looking like the loser versus gold as precious metals top new all-time highs Monday.

Key points:

Bitcoin is not the debasement trade after years of loses against gold, analysis concludes.

As precious metals hit all-time highs, BTC price action fails to rebound.

Gold starts grilling the S&P 500, potentially shifting a years-old narrative if it continues to gain.

BTC debasement trade: “The narrative is broken”

New analysis from Karel Mercx, an investment specialist at Dutch investment advisory Beleggers Belangen, says Bitcoin has failed as the "debasement trade.”

Bitcoin slipped below 20 ounces in gold terms to start 2026, and is now circling two-year lows, per data from TradingView. 

As markets react to US government action against Federal Reserve Chair Jerome Powell, gold and silver continue to enjoy price discovery while Bitcoin flounders.

While bulls hope that BTC/USD will soon catch up, for Mercx, the writing has long been on the wall.

“The verdict is in: the debasement trade is Gold & Silver, not Bitcoin,” he told X followers in a post Monday. 

“A frontal attack on the FED sends metals to fresh ATHs while BTC sits 20% below its peak.”

BTC/XAU one-week chart. Source: Cointelegraph/TradingView

Mercx took issue with the idea that Bitcoin is an attractive destination for investors seeking shelter from fiat currency supply dilution — also known as the “debasement trade.”

Despite how Bitcoin stacks up as “digital gold” versus bullion, actual capital flows point to demand for the latter.

“The narrative is broken,” he continued. 

“Investors are choosing the original hard money over the digital experiment. Book closed.”

Bitcoin price cycle obituaries mount

Among crypto proponents, a sense of urgency continues to build.

Addressing the topic, crypto trader, analyst and entrepreneur Michaël van de Poppe acknowledged that time may be running out on a market rebound.

Times are starting to get interesting for anyone involved in the #Crypto markets.

Gold has made a new all-time high.
Silver has made a new all-time high.

My concern: it really needs to accelerate with this breakout, or we'll start to tumble back down, and the bearish… pic.twitter.com/55VsW2UyuT

— Michaël van de Poppe (@CryptoMichNL) January 12, 2026

Turning to stocks, crypto market commentator Benjamin Cowen called gold’s performance against the S&P 500 “one of the most important charts right now.”

“If SPX breaks down against Gold, the environment we have found ourselves in for the last decade will completely change,” he argued about the monthly chart.

S&P 500 vs. gold one-month chart. Source: Benjamin Cowen/X

Last September, meanwhile, Mercx declared Bitcoin’s four-year price cycle “dead” — a narrative that has continued to gain popularity since.

“$BTC priced in gold shows each cycle weaker then the last one, and now the first 4-year loss,” he wrote at the time.

World Liberty Financial, a decentralized finance project linked to the family of US President Donald Trump, has entered the cryptocurrency lending market, highlighting renewed interest in onchain credit as regulatory clarity improves.

The new product, called World Liberty Markets, launched on Monday and allows users to borrow and lend digital assets, according to a Bloomberg report. The platform is built around USD1, World Liberty’s US dollar–backed stablecoin, alongside its governance token, WLFI.

Users can post collateral, including Ether (ETH), a tokenized version of Bitcoin (BTC) and major stablecoins such as USD Coin (USDC) and Tether (USDT). The platform is designed to support both lending and borrowing activity within a single onchain marketplace.

World Liberty co-founder Zak Folkman told Bloomberg that additional collateral types will be added over time, potentially including tokenized real-world assets (RWAs). He also said the company is exploring partnerships with prediction markets, cryptocurrency exchanges and real estate platforms.

World Liberty Financial USD (USD1) has grown rapidly, with a market capitalization of $3.4 billion. Source: CoinMarketCap

The lending rollout follows World Liberty’s recent application for a national trust bank charter with the US Office of the Comptroller of the Currency. The company has said the charter would support broader adoption of USD1, which is already being used for cross-border payments and treasury operations.

Related: Crypto’s 2026 investment playbook: Bitcoin, stablecoin infrastructure, tokenized assets

Renewed demand for crypto borrowing and lending

As digital assets move further into the financial mainstream, demand for crypto-based borrowing and lending is picking up again, as investors seek new ways to unlock liquidity without selling their holdings.

This renewed interest is emerging alongside clearer regulatory frameworks and a more mature industry infrastructure. Importantly, many of the most damaging failures from previous market cycles, including the collapse of BlockFi and Celsius, stemmed from centralized business models, opaque risk management and excessive leverage, rather than from blockchain infrastructure itself. 

Market participants argue that improved transparency, onchain risk controls and regulatory oversight may help prevent similar breakdowns.

Activity across DeFi lending protocols has surged in recent years, peaking in October. Source: DefiLlama

Crypto lending is now re-emerging in multiple forms. Digital asset lending firm Nexo, for example, offers zero-interest borrowing products that allow Bitcoin and Ether holders to take out loans against their assets, reflecting continued demand for collateralized credit.

Activity is also increasing within decentralized finance. Babylon recently received $15 million from a16z Crypto to expand its Bitcoin-native lending infrastructure. The funding underscores growing investor interest in building lending markets that operate directly on blockchain networks rather than through centralized intermediaries.

Related: Stablecoins, sanctions and surveillance: Why 2025 reshaped crypto’s regulatory reality

Key takeaways:

ETH/BTC eyes a 95% upside toward 0.066 BTC if it breaks above the key 0.042 BTC neckline.

A bear pennant breakdown toward 0.024–0.025 BTC would negate the reversal setup.

Ethereum’s native token, Ether (ETH), could rally by over 95% versus Bitcoin (BTC), according to a textbook bullish reversal pattern forming on the ETH/BTC chart.

Ethereum mirroring bullish setup from 2021

As of Monday, Ether appeared to be carving out the right shoulder of a developing inverse head-and-shoulders (IH&S) pattern on the ETH/BTC chart.

ETH/BTC weekly chart. Source: TradingView

This stage typically marks the penultimate phase of a bullish reversal, with confirmation arriving once the price breaks decisively above the neckline resistance.

Once confirmed, the pattern’s upside target is typically calculated by measuring the distance between the head’s low and the neckline, suggesting room for a strong rally after a successful breakout.

ETH/BTC could rise toward 0.066 BTC if it breaks decisively above the neckline resistance at around 0.042 BTC. That amounted to approximately 95% gains compared to the current price levels.

A similar inverse head-and-shoulders structure played out on the ETH/BTC chart in 2019–2021, following a prolonged period of Ether underperformance. That setup resolved with a 95% breakout above its neckline.

ETH/BTC weekly chart. Source: TradingView

Analyst Michael van de Poppe shared a similar outlook for ETH/BTC over the weekend, saying that the pair had already bottomed out in April 2025 and was due for further gains in 2026.

What invalidates the Ether-Bitcoin bullish outlook

The bullish ETH/BTC reversal thesis would be invalidated if the pair fails to continue forming the right shoulder and instead breaks lower from its current consolidation.

On shorter-time frame charts, ETH/BTC appears to be forming a bear pennant, a pattern that typically signals trend continuation to the downside after a sharp drop.

ETH/BTC three-day chart. Source: TradingView

A confirmed breakdown from this structure would likely drag the pair toward its pennant target near 0.024–0.025 BTC.

Such a move would prevent a rally toward the neckline, invalidate the inverse head-and-shoulders setup, and signal that Ether’s relative downtrend against Bitcoin remains intact.

BitGo Holdings, a major cryptocurrency custody company, announced the launch of its initial public offering (IPO) in a filing with the US Securities and Exchange Commission (SEC).

In a Form S-1 filed with the SEC, BitGo said the offering will include 11 million shares of Class A common stock issued by the company, along with 821,595 shares offered by existing stockholders. The company announced the launch of the offering on Monday.

Based on an expected price range of $15 to $17 per share, the IPO could raise up to about $201 million, with total shares offered amounting to roughly 11.8 million.

This announcement follows BitGo’s initial Form S-1 filing with the SEC in September 2025, when the company first signaled its intention to go public on the New York Stock Exchange (NYSE) under the ticker “BTGO.”

$1.96 billion valuation and more than $90 billion in assets under custody

BitGo’s IPO launch comes as the company has amassed more than $90 billion in assets under custody since it launched its platform in 2013. The company is reportedly targeting a valuation of up to $1.96 billion through the offering.

For the IPO, BitGo has engaged several major US investment banks as lead underwriters, including Goldman Sachs as the lead book-running manager and Citigroup as a book-running manager.

Source: SEC

Additional book-running managers include Deutsche Bank Securities, Mizuho, Wells Fargo Securities, Keefe, Bruyette & Woods, Canaccord Genuity and Cantor. Co-managers for the offering are Clear Street, Compass Point, Craig-Hallum, Rosenblatt, Wedbush Securities and SoFi.

“A registration statement relating to the Class A common stock has been filed with the SEC but has not yet become effective,” BitGo said in the announcement.

It added that shares of Class A common stock may not be sold, nor may offers to buy be accepted, before the time the registration statement becomes effective.

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

Corporate Bitcoin investor Strategy added another 13,627 Bitcoin to its balance sheet last week, spending $1.25 billion as it continues accumulating Bitcoin early in the year. The purchase marks the company’s biggest BTC buy since July.

In a Form 9-K filing with the United States Securities and Exchange Commission, the company disclosed on Monday that its Bitcoin (BTC) stash has reached a total of 687,410 BTC, acquired at an aggregate cost of about $51.8 billion. 

The latest batch of BTC was bought at an average price of $91,519 per coin, well above Strategy’s total average cost basis of $75,353.

The latest acquisition reinforces Strategy’s position as the world’s largest corporate holder of Bitcoin and signals that its accumulation strategy remains unchanged even as prices hover near recent highs.

Source: Strategy

Equity issuance continues to fund Strategy’s Bitcoin buys

According to the filing, the latest Bitcoin purchases were funded using Strategy’s at-the-market (ATM) equity programs, primarily through the sales of its MSTR common stock and STRC Variable Rate Series A Perpetual Stretch Preferred Stock.

Strategy said it raised about $1.25 billion in net proceeds, which were then deployed to acquire BTC between Jan. 5 and Jan. 11. The company said its reported aggregate and average buy price included all the fees and expenses associated with the transactions. 

The company still retains substantial issuance capacity across its common and preferred stock programs, highlighting how access to equity markets remains one of its core strategies for Bitcoin accumulation. 

Related: $11B Bitcoin whale sells $330M ETH, opens massive $748M longs in top cryptos

Strategy stacks Bitcoin through drawdowns and paper losses

The latest purchase follows the company’s first Bitcoin buy this year, when it purchased 1,283 BTC for $116 million on Jan. 5. The disclosure coincided with the company reporting a $17.4 billion unrealized loss on its Bitcoin holdings during the fourth quarter of 2025, as prices fell over 20% late last year. 

Despite its paper losses, the company continued to issue equity and maintained cash reserves to service dividends and outstanding obligations. This approach signaled long-term conviction on its Bitcoin thesis. 

The company’s consistency in its Bitcoin strategy pushed the normalization of Bitcoin-centric treasuries among public companies. According to Bitcoin Treasuries, public companies now hold over 1.1 million Bitcoin. 

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

Cardano founder Charles Hoskinson said he doubts the US Digital Asset Market Clarity Act will pass this quarter and called on President Donald Trump’s crypto advisor, David Sacks, to resign.

Hoskinson criticized the US approach to regulating crypto in an interview on Sunday with Bitcoin (BTC) enthusiast Scott Melker on The Wolf of All Streets Podcast.

“I don’t think the CLARITY Act is going to pass this quarter,” Hoskinson said, warning that if Democrats regain control of the US House of Representatives in November’s midterm elections, the current window to pass the bill could be lost.

“If it doesn’t pass this quarter, I think Sacks should resign,” he added, blaming Sacks for “utterly failing” the crypto industry since taking on the role of Trump’s crypto “czar” in late 2024.

Senate committees to vote on CLARITY Act on Thursday

Introduced in May 2025, the CLARITY Act cleared both the House Financial Services Committee and the House Agriculture Committee with bipartisan support.

It seeks to clarify the roles of the Securities and Exchange Commission and the Commodities Futures Trading Commission in regulating cryptocurrencies, and to provide guidance on different types of tokens.

The Senate Agriculture and Banking Committees are expected to vote on the bill on Thursday, in a potential milestone for the US crypto industry.

Source: Angry Crypto Show

In expressing doubts over the bill’s passage, Hoskinson said Sacks had “failed” the industry in three areas, including falling prices, lack of regulatory clarity, and the absence of a strong foundation for building projects.

“If you’re the czar and you’re in charge of this whole thing, I got to judge you by your track record. Most cryptos are down 40 to 50% since Trump took office. So the industry is unhealthy,” he said.

From Trumpcoin to GENIUS Act, Hoskinson says US crypto policy is failing

Expanding on the industry’s struggles, Hoskinson also argued that other bills, such as the stablecoin-related GENIUS Act, favor large financial institutions over retail investors.

“It [GENIUS Act] centralizes the industry around BlackRock, Cantor, Goldman Sachs, and Morgan Stanley and all these big guys,” he said, adding that the bill essentially “handed Wall Street the keys to the crypto kingdom.”

Related: Coinbase could pull CLARITY Act support over stablecoin rewards ban

Addressing Trump’s approach to crypto, including the controversial Trump memecoin, Hoskinson urged the US not to favor or nationalize cryptocurrency, warning it should remain a global, neutral product:

“There’s no such thing as an American crypto. You can have American cryptocurrency companies, but you can’t have American cryptocurrency protocols. That doesn’t make sense.”

Hoskinson said crypto laws should be passed carefully, with the industry united and the US government working alongside it rather than rushing for partisan gain.

“Even if it takes longer to get done, the goal should be to pass rules that last and don’t harm innovation,” he said.

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

The Bank of Italy has modeled what would happen to Ethereum’s security and settlement capacity if the price of Ether fell to zero, treating the network as critical financial infrastructure rather than just a speculative crypto asset.

In a new research paper titled “What if Ether Goes to Zero? How Market Risk Becomes Infrastructure Risk in Crypto,” Bank of Italy economist Claudia Biancotti examines how an extreme price shock in Ether (ETH) could affect Ethereum‑based financial services that rely on the network for transaction processing and settlement.

Biancotti focuses on the link between validators’ economic incentives and the stability of the underlying blockchain used by stablecoins and other tokenized assets.

The paper models how validators, who are rewarded in ETH, might respond if the token’s price collapsed and their rewards lost sufficient value.

In that scenario, a portion of validators could rationally exit, Biancotti argues, which would reduce the total stake securing the network, slow block production, and weaken Ethereum’s ability to withstand certain attacks and guarantee the timely, final settlement of transactions.

When ETH price risk becomes infrastructure risk

Rather than treating Ether purely as a volatile investment, the study frames it as a core input into the settlement infrastructure used by a growing share of onchain financial activity. 

Biancotti argues that Ethereum is increasingly used as a settlement layer for financial instruments, so that shocks to the value of the native token can affect the reliability of the underlying infrastructure.

What if Ether Goes to Zero? Source: Bank of Italy

This framing allows the Bank of Italy to trace how market risk in the base token can morph into operational and infrastructure risk for instruments built on top, from fiat‑backed stablecoins to tokenized securities that depend on Ethereum for transaction ordering and finality. 

The paper emphasizes that, in such stress, disruptions would not be limited to speculative trading but could spill over into payment and settlement use cases that regulators increasingly monitor. 

ECB warnings on stablecoin spillovers

Other authorities, including the International Monetary Fund and the European Central Bank (ECB), have warned that large stablecoins could become systemically important and pose financial stability risks if they continue to grow rapidly and remain concentrated in a handful of issuers. 

An ECB Financial Stability Review report published in November 2025 noted that stablecoins’ structural vulnerabilities and their links to traditional finance mean a severe shock could trigger runs, asset fire sales (rapid selling of reserve assets at depressed prices to meet redemptions), and deposit outflows, especially if adoption broadens beyond crypto trading.

The Bank of Italy concludes that regulators face a difficult trade‑off over whether and how supervised intermediaries should be allowed to rely on public blockchains for financial services. 

It sketches two options: either treating today’s public chains as unsuitable for use in regulated financial infrastructure because they depend on volatile native tokens, or permitting their use while imposing risk mitigation measures such as business‑continuity plans, contingency chains, and minimum standards for economic security and validators.

Standard Chartered is reportedly considering launching a crypto prime brokerage platform, signaling a potential expansion of the bank’s digital asset ambitions as traditional financial institutions deepen their involvement in the sector.

The British multinational bank is in early-stage discussions to establish a crypto trading and prime brokerage platform under its venture capital arm, SC Ventures, Bloomberg reported Monday, citing unnamed sources. A timeline for a potential launch has not been finalized.

Standard Chartered has yet to confirm the plans. In July 2025, Standard Chartered launched trading services enabling institutions and corporations to trade the leading cryptocurrencies.

Cointelegraph reached out to the bank for comment but had not received a response by publication time.

The development comes as large financial institutions increasingly test or expand crypto-related offerings. Investment banking giant Morgan Stanley filed to launch an Ether (ETH) exchange-traded fund (ETF) on Wednesday, marking its third crypto ETF filing.

Earlier this month, the second-largest US bank, Bank of America, approved four spot Bitcoin (BTC) ETFs for proactive recommendation through its network of over 15,000 wealth advisors.

Standard Chartered cuts medium-term Ether outlook

Despite its reported interest in expanding crypto services, Standard Chartered has trimmed its medium-term price outlook for Ether, citing broader weakness across digital asset markets.

Standard Chartered lowered its Ether price forecast to $7,500 for the end of 2026, down from its previously forecasted $12,000, while lowering its end-2028 forecast from $25,000 to $22,000, according to a Monday report shared with Cointelegraph.

“Weaker-than-expected Bitcoin performance has dampened prospects for all digital assets against the USD given Bitcoin’s continued dominance of the sector,” wrote Geoff Kendrick, global head of digital assets research at Standard Chartered.

The bank still expects Ether to surpass $40,000 by 2030, raising its long-term forecast from the previous $30,000 target.

Standard Chartered price forecasts for Bitcoin and Ether. Source: Standard Chartered

Related: Sharplink pockets $33M from Ether staking, deploys another $170M ETH

Looking at onchain data, whales, or large cryptocurrency investors, have accumulated $16.5 million in Ether tokens across 324 wallets during the previous week, doubling their acquisition rate from the previous week, according to crypto intelligence platform Nansen.

ETH/USD, 1-year chart, token flows by cohorts. Source: Nansen

However, the industry’s leading traders by returns, tracked as “smart money,” have sold $7.13 million in spot ETH during the same period.

Ether has fallen 17% over the past three months and 5.4% in the past year to trade hands at $3,105 at the time of writing, according to Nansen data.

Magazine: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’

Seventy economists and policy experts have called on Members of the European Parliament (MEPs) to back a digital euro that clearly serves the public interest, arguing that it is crucial for Europe’s monetary sovereignty and for guaranteeing access to central bank money in an increasingly cash‑light economy. 

The open letter, published on Sunday and titled “The Digital Euro: Let the public interest prevail!” warns that without a strong public option, private stablecoins and foreign payment giants could gain even greater influence over Europe’s digital payments.

​The signatories, including former executive board director for the European Union at the European Bank for Reconstruction and Development (EBRD), José Leandro, and French economist Thomas Piketty, describe the proposed central bank digital currency (CBDC) as a public good.

They argue for a public, euro area‑wide digital means of payment, issued by the Eurosystem and free of charge for basic services, that would complement rather than replace cash.

Open letter to MEPs. Source: Sustainable Finance Lab

They caution that if the EU hesitates or waters down the project, European citizens and merchants risk becoming more dependent on private, mostly non‑European card schemes and big technology payment platforms, which could weaken the resilience and autonomy of Europe’s payment system in times of stress.

ECB’s preparation phase and design choices

Their intervention comes while the European Central Bank (ECB) is in the preparation phase of the digital euro project, working on a rulebook, technical architecture, and offline functionality ahead of any final decision on issuance. 

The ECB describes the digital euro’s design as a public, pan‑European payment solution that offers cash‑like access to central bank money, including offline payments, while preserving financial stability through tools such as holding limits and tiered remuneration.

In a Jan. 9 speech, ECB executive board member Philip Lane reiterated that the project aims to balance innovation, privacy, and the continued role of banks as intermediaries in the retail payment system.

​According to the ECB, a digital euro could support use cases such as conditional payments and offline functionality, while respecting anti‑money laundering (AML) and privacy requirements.

Concerns and privacy demands from consumers

At the same time, the project has faced skepticism from commercial banks, and some policymakers worried about potential disintermediation of deposits, operational costs, and uncertain user uptake. Consumer surveys also indicate that strong privacy protections are a key condition for public acceptance of a digital euro.

Analysts at BNP Paribas also highlighted that the digital euro’s benefits must be weighed against possible funding and profitability pressures for banks, depending on where holding limits and remuneration are set. 

In response to Cointelegraph’s questions, the ECB declined to comment directly on the economists’ letter but pointed to several recent studies.

One technical annex analyses the financial stability impact of a digital euro with individual holding limits set at 3,000 euros, concluding that no financial stability concerns arise even in an adverse scenario.

Another report assesses how a digital euro would fit into the existing payment ecosystem, while separate papers examine privacy safeguards and the investment costs for the euro area banking sector.

The Dubai Financial Services Authority (DFSA) has brought into force a major update to its Crypto Token Regulatory Framework, shifting responsibility for crypto token suitability assessments from the regulator to licensed companies operating in the Dubai International Financial Centre (DIFC), Dubai’s financial free economic zone.

Under the revised rules, which took effect on Monday, companies providing financial services involving crypto tokens must now determine whether tokens they engage with meet the DFSA’s suitability criteria. As part of the change, the DFSA will no longer maintain or publish a list of recognized crypto tokens. 

The update follows a consultation process launched in October 2025, and reflects a shift in the regulator’s approach since introducing its crypto token regime in 2022. Since then, the DFSA said it has closely monitored developments and engaged with stakeholders to ensure the framework remains aligned with global standards.  

Charlotte Robins, managing director of policy and legal at the DFSA, said the changes reflect a deliberate move toward a more flexible and principles-based model. “The DFSA’s enhancements to the Crypto Token regime reflect our progressive stance on innovation and proactive response to market developments and feedback,” Robins said.

A tougher framework for privacy tokens

The DFSA’s updated framework does not introduce an explicit ban on any specific category of digital assets by name. 

However, the changes reallocate responsibility for assessing the suitability of tokens from the regulator to licensed firms operating within the DIFC. 

Even without an explicit ban, privacy-focused tokens like Monero (XMR) and Zcash (ZEC) may face greater scrutiny under the DFSA’s updated framework. Some privacy tokens may be deemed higher risk by internal compliance teams, leading firms to apply stricter due diligence standards or avoid supporting them altogether. 

The change also highlights a key jurisdictional distinction. The DFSA regulates financial services within DIFC, which operates under a common-law framework separate from Dubai’s onshore regulatory regime.

Other jurisdictions of Dubai and the UAE fall under different crypto regulators with their own rulebooks.

Related: UAE’s dirham stablecoin race widens as RAKBank nets in-principle approval

Privacy tokens and the UAE’s fragmented approach

The DFSA’s principles-based approach contrasts sharply with the stance taken elsewhere in Dubai. 

As previously reported by Cointelegraph in February 2023, Dubai’s crypto regulator, the Dubai Virtual Assets Regulatory Authority (VARA), introduced an explicit ban on privacy coins under its Virtual Assets and Related Activities Regulations 2023. 

VARA’s rules prohibit the issuance of “anonymity-enhanced cryptocurrencies” and all related virtual asset activities within its jurisdiction, which covers most of Dubai outside DIFC.

Across the wider UAE, crypto regulation remains fragmented. Abu Dhabi’s regulator, the Abu Dhabi Global Market (ADGM), adopts a conservative, risk-based approach without an outright ban, while federal regulators emphasize AML and counter-terrorism financing compliance.

As a result, privacy-focused crypto assets are not uniformly illegal across the UAE, but their treatment varies significantly by jurisdiction.

Magazine: Davinci Jeremie bought Bitcoin at $1… but $100K BTC doesn’t excite him

Crypto investment products posted significant outflows last week, with a four-day run of withdrawals nearly erasing the roughly $1.5 billion in inflows seen during the first two trading days of 2026

Crypto exchange-traded products (ETPs) saw $454 million in outflows last week, European crypto asset manager CoinShares reported on Monday.

“This turnaround in sentiment appears to stem mainly from investor worries over the diminishing prospects of a Federal Reserve interest rate cut in March following recent macro data releases,” CoinShares’ head of research, James Butterfill, said in the update.

Despite last week’s outflows, month-to-date flows remained positive at $229 million, following $582 million of inflows the previous week.

Bitcoin leads the negative sentiment with $404 million outflows

Major cryptocurrency Bitcoin (BTC) drove the negative sentiment in crypto ETPs last week, posting outflows of $404 million. Short-BTC funds saw minor outflows of $9 million, leaving overall market sentiment for the asset mixed, Butterfill noted.

On the other hand, altcoin funds for assets such as XRP (XRP), Solana (SOL) and Sui (SUI) saw a persisting positive trend, with inflows totaling around $46 million, $33 million and $8 million, respectively.

Weekly crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares

Ether (ETH) funds saw $116 million outflows, while multi-asset altcoin products also posted combined outflows of $21 million.

US the only market to bear major losses

Geographically, the United States was the only market to show negative sentiment, with outflows reaching $569 million.

By contrast, several countries, including Germany, Canada and Switzerland, saw inflows of approximately $59 million, $25 million and $21 million, respectively.

Weekly crypto ETP flows by country as of Friday (in millions of US dollars). Source: CoinShares

By the end of last week, crypto ETP issuers held $181.9 billion in assets under management, slightly up from $181.3 billion the previous week.

BlackRock’s iShares products and Profunds Group led inflows with $181 million and $180 million, respectively, while Fidelity Investments and Grayscale Investments drove outflows, posting $454 million and $360 million, respectively.

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