Invest ideasNews
24 Jan 2026, 05:10
The UK Financial Conduct Authority is entering the final phase of its consultation on crypto regulation
The UK Financial Conduct Authority is entering the final phase of its consultation on crypto regulation and is gathering feedback on applying the consumer duty to crypto firms. The FCA emphasizes that rules are meant to set industry standards and not eliminate inherent investment risks, although the consumer duty requires firms to act in good faith. The UK regulator plans to collect all feedback by March 12 and open an application gateway for cryptoasset approvals in September. The FCA hopes to be done with all this before October, when new rules, including those already registered under money-laundering regulations (MLRs), will be authorized. The FCA has also set out proposals on how conduct standards, safeguarding, and redress will apply to crypto firms. These proposals are expected to continue the regulator’s progress towards an open, competitive, and sustainable crypto market that investors can trust. The consumer duty sets standards for crypto companies to ensure that they deliver positive outcomes for customers while helping them navigate their financial lives. Final consultation follows the package of proposals last December According to the FCA, these final consultations follow a package of proposals set out last December on applying the same approach to traditional finance in crypto. The regulator seeks to provide clear information for consumers, with well-balanced requirements for companies and flexibility to support innovation. The UK regulator is consulting on how the consumer duty will be supported by additional non-Handbook guidance to ensure companies deliver sufficient outcomes for retail customers. It will also seek feedback on its approach to handling conflicts and redress in order to ensure consumers have a clear path to resolving issues. Moreover, the FCA is looking at how to apply key conduct rules to crypto activities so that companies act transparently and fairly. Rules on buying crypto on credit and reducing the risks of harm from borrowing to invest will also be considered. The regulator is also following feedback on its approach to categorizing crypto firms under the Certification Regime and the Senior Managers Regime. Standards for staff skills and knowledge need to be set so that firms have competent employees managing crypto services. The FCA also wants crypto firms to report data to the regulator so that it can monitor risks and supervise operations effectively. It reminds investors that crypto is largely unregulated in the UK and is currently used for financial promotions and financial crimes. FCA awards Ripple MLR registration The FCA recently awarded MLR registration to XRP issuer Ripple, following its start of accepting applications last September. According to a notice published on its official website on January 22, the road to formal crypto regulation in the UK became clearer at the end of last year, with legislation from the Treasury extending existing financial rules to include crypto firms. Meanwhile, the FCA said earlier this month that crypto firms looking to offer services in the UK would be required to be authorized under the new rules taking effect in October 2027. The requirement also applies to crypto firms already registered under its MLRs. Crypto firms must also comply with operational resilience, consumer duty, financial crime, and governance requirements. The firms already registered under anti-money laundering or payment regulations will need full authorization, while those authorized by the FSMA must vary their permissions. However, the FCA does not plan to extend Financial Service Compensation Scheme (FSCS) protection to cryptoassets. The FSCS provides compensation for customers when companies cannot meet their liabilities. That will not be the same with investors in crypto firms that go out of business. These customers will not be able to claim compensation for investment losses, even those arising from regulated crypto activities. There are also potential inconsistencies in this approach, according to the FCA. Claims about shares held in custody will be covered by the FSCS, but claims about safeguarding tokens representing shares on blockchains will not be covered. The smartest crypto minds already read our newsletter. Want in? Join them .
24 Jan 2026, 05:10
Crypto Liquidations Shock: Short Positions Dominate $216M in 24-Hour Market Carnage
BitcoinWorld Crypto Liquidations Shock: Short Positions Dominate $216M in 24-Hour Market Carnage Global cryptocurrency markets experienced dramatic turbulence on March 15, 2025, as $216 million in leveraged positions faced liquidation within a single 24-hour period. Short positions bore the overwhelming brunt of this financial pressure, particularly in Bitcoin and Ethereum perpetual futures markets. This significant liquidation event highlights the volatile nature of cryptocurrency derivatives trading and its substantial impact on market dynamics. Crypto Liquidations Analysis: Breaking Down the $216M Event The cryptocurrency perpetual futures market witnessed extraordinary activity during this liquidation period. Bitcoin led the cascade with $110 million in liquidated positions, while Ethereum followed closely with $92.47 million. Solana recorded $13.59 million in liquidations, completing the top three affected assets. These figures represent forced position closures by exchanges when traders cannot meet margin requirements. Market analysts immediately noted the disproportionate impact on short sellers. Approximately 78.92% of Bitcoin liquidations involved short positions, indicating traders betting on price declines faced significant losses. Similarly, 64.85% of Ethereum liquidations affected short positions, and 57.63% of Solana liquidations impacted bearish traders. This pattern suggests a rapid price movement upward triggered margin calls across major exchanges. 24-Hour Cryptocurrency Liquidation Breakdown Asset Total Liquidations Short Position Percentage Long Position Percentage Bitcoin (BTC) $110 million 78.92% 21.08% Ethereum (ETH) $92.47 million 64.85% 35.15% Solana (SOL) $13.59 million 57.63% 42.37% Other Assets ~$0.94 million Data varies Data varies Understanding Perpetual Futures Market Mechanics Perpetual futures contracts differ significantly from traditional futures. These derivative instruments lack expiration dates, allowing traders to maintain positions indefinitely. However, they incorporate funding rate mechanisms that periodically transfer funds between long and short positions. This structure maintains contract prices close to underlying spot prices while creating complex risk dynamics. Several key factors contributed to this liquidation event: Leverage ratios averaging 10-25x across major exchanges Funding rate fluctuations increasing costs for short positions Market sentiment shifts triggering rapid price movements Cascading liquidations creating chain reaction effects Exchange protocols automatically trigger liquidations when positions reach specific thresholds. Consequently, these forced closures often accelerate price movements in the triggering direction. This phenomenon creates feedback loops that can dramatically amplify market volatility within compressed timeframes. Historical Context and Market Comparisons The March 2025 liquidation event represents the most significant short-dominated liquidation since November 2023. During that previous period, Bitcoin experienced $150 million in liquidations with 72% affecting short positions. However, the combined $216 million across multiple assets in 2025 demonstrates broader market participation in derivative trading. Market data reveals increasing correlation between major cryptocurrency assets during volatility events. When Bitcoin experiences significant liquidations, Ethereum and other major altcoins typically follow similar patterns within hours. This interconnectedness reflects growing institutional participation and cross-margin trading strategies across cryptocurrency derivatives platforms. Bitcoin’s Dominant Role in Market Liquidations Bitcoin consistently leads cryptocurrency liquidation events due to its market dominance and high liquidity. The $110 million in Bitcoin liquidations represented approximately 51% of the total $216 million event. This disproportionate impact stems from Bitcoin’s status as the primary collateral asset across derivative platforms and its role as a market sentiment indicator. The 78.92% short position liquidation rate for Bitcoin suggests several market dynamics. First, many traders positioned for continued price declines before the liquidation event. Second, rapid price appreciation triggered margin calls on these leveraged short positions. Third, the cascading effect of these liquidations likely contributed to further upward price pressure during the period. Exchange data indicates Binance, Bybit, and OKX processed the majority of Bitcoin liquidations. These platforms dominate cryptocurrency derivatives trading with sophisticated risk management systems. However, even robust systems cannot prevent liquidations when markets move rapidly against highly leveraged positions. Ethereum and Altcoin Liquidation Dynamics Ethereum’s $92.47 million in liquidations marked its second-largest event in twelve months. The 64.85% short position liquidation rate reflects Ethereum’s unique market positioning. As the leading smart contract platform, Ethereum often experiences different volatility patterns than Bitcoin despite general correlation during extreme events. Several factors contributed to Ethereum’s significant liquidation volume: Protocol upgrade anticipation affecting trader positioning DeFi activity fluctuations influencing ETH demand Staking derivative products creating additional leverage exposure Institutional Ethereum futures introducing traditional market dynamics Solana’s $13.59 million in liquidations, while smaller in absolute terms, represented significant relative impact given its market capitalization. The 57.63% short position liquidation rate indicates balanced but bearish positioning before the volatility event. Solana’s growing derivatives market presence contributes to its increasing inclusion in major liquidation events. Expert Analysis of Market Implications Financial analysts emphasize several important implications from this liquidation event. First, the dominance of short position liquidations suggests underlying market strength despite volatility. Second, the substantial volumes indicate growing cryptocurrency derivatives market maturity and liquidity depth. Third, the event demonstrates improved exchange risk management compared to previous market cycles. Regulatory observers note increasing attention to cryptocurrency derivatives following such events. Multiple jurisdictions have proposed leverage limits on retail cryptocurrency trading. These proposals aim to reduce systemic risk from cascading liquidations while maintaining market functionality. The March 2025 event provides empirical data for these regulatory discussions. Market structure analysts highlight the role of automated trading systems during liquidation events. Algorithmic traders often provide liquidity during volatility but may also amplify movements through similar positioning. This creates complex interactions between human traders, algorithmic systems, and exchange risk protocols during high-volatility periods. Risk Management Lessons from the Liquidation Event The $216 million liquidation event offers valuable risk management insights for cryptocurrency traders. Position sizing emerges as the primary consideration, with excessive leverage creating vulnerability to relatively small price movements. Diversification across assets and instruments provides some protection but cannot eliminate systemic market risk during correlated events. Several practical strategies can mitigate liquidation risk: Conservative leverage ratios below 5x for most positions Multiple collateral types to reduce correlation risk Stop-loss orders at appropriate technical levels Regular position monitoring during high-volatility periods Understanding exchange-specific liquidation protocols and fees Exchange transparency regarding liquidation processes has improved significantly since 2023. Most major platforms now provide detailed documentation of their margin systems, liquidation triggers, and auction mechanisms. This transparency helps traders make informed decisions about position management and platform selection. Conclusion The $216 million cryptocurrency liquidation event dominated by short positions represents a significant market occurrence with multiple implications. Bitcoin led with $110 million in liquidations, while Ethereum and Solana contributed substantial additional volumes. The dominance of short position liquidations suggests underlying market strength despite volatility pressures. This event highlights the growing sophistication and risks of cryptocurrency derivatives markets while providing valuable data for traders, analysts, and regulators. As cryptocurrency markets continue maturing, such liquidation events will likely decrease in frequency but increase in absolute scale due to growing market participation and capital allocation. FAQs Q1: What causes cryptocurrency liquidations? Cryptocurrency liquidations occur when leveraged positions cannot meet margin requirements. Exchanges automatically close these positions to prevent losses exceeding collateral. Rapid price movements often trigger cascading liquidations across multiple traders. Q2: Why were short positions disproportionately affected? Short positions faced higher liquidation rates because traders had positioned for price declines before rapid appreciation. When prices rose against these leveraged short positions, margin calls forced closures, creating upward price pressure. Q3: How do perpetual futures differ from regular futures? Perpetual futures lack expiration dates and use funding mechanisms to track spot prices. Regular futures have set expiration dates and settle based on predetermined prices. Perpetual contracts enable continuous position maintenance with periodic funding payments. Q4: Which exchanges experienced the most liquidations? Major derivatives exchanges including Binance, Bybit, and OKX processed most liquidations. These platforms dominate cryptocurrency derivatives trading with sophisticated margin systems handling high volumes during volatility events. Q5: Can traders prevent liquidations? Traders can reduce liquidation risk through conservative leverage, diversified collateral, stop-loss orders, and careful position monitoring. However, rapid unexpected price movements can still trigger liquidations despite risk management measures. This post Crypto Liquidations Shock: Short Positions Dominate $216M in 24-Hour Market Carnage first appeared on BitcoinWorld .
24 Jan 2026, 05:00
Inside Bitwise’s bet on the debasement trade with Bitcoin-gold ETF
Bitcoin-gold's positive correlation improved, but recent macro updates derailed the momentum.
24 Jan 2026, 05:00
Crypto Company Ledger Plans US IPO With Valuation Expected To Top $4 Billion
Ledger, the French maker of hardware wallets for crypto assets, is reportedly moving ahead with plans for a potential initial public offering (IPO) in New York, signaling continued momentum in public market interest for digital asset companies. The listing would place Ledger among a growing group of crypto firms seeking access to US capital markets, following the recent public debut of BitGo earlier this week. Ledger Taps Wall Street Giants For US IPO The move comes amid a broader initial public offering wave that gained strong traction throughout 2025, when several major crypto-native companies either went public or began laying the groundwork to do so. Firms such as Circle (CRLC), Bullish (BLSH), eToro (ETOR), Figure (FIGR), and Gemini (GEMI) have already gone public in the US, while Grayscale and Kraken remain part of the renewed IPO push, with filings submitted and preparations still underway. According to a report by the Financial Times, Ledger has engaged investment banks including Goldman Sachs and Barclays to advise on its initial public offering in the United States. People familiar with the matter say the offering could value the company at more than $4 billion. While the IPO could take place as soon as this year, sources cautioned that the plans remain subject to change. Ledger’s reported IPO ambitions come as BitGo opened trading on Thursday with its shares jumping 24.6%, giving the company a valuation of approximately $2.59 billion. BitGo and several of its existing shareholders sold 11.8 million shares priced above the initially marketed range of $15 to $17, raising $212.8 million in the process. BitGo Sets Tone For 2026 Crypto IPOs Market experts have pointed to BitGo’s performance as an important signal for the broader crypto IPO landscape. Lukas Muehlbauer, an IPOX research associate, described BitGo’s listing as the first major test of investor demand for crypto-related offerings in 2026. He noted that while Gemini went public near the peak of the crypto market last year, BitGo entered the market during a period of recent selloffs, making its reception particularly telling. Muehlbauer added that BitGo’s positioning as a profitable and regulated “digital asset infrastructure company,” rather than a business tied directly to token price movements, helped insulate it from “Bitcoin’s (BTC) day-to-day volatility.” Beyond Ledger, expectations are building that the pipeline of crypto IPOs will continue to grow. In addition to Kraken and Grayscale, industry experts believe the coming year could bring an even larger number of crypto-related IPOs in the US. “2025 marked the professionalization of crypto, and the public markets noticed,” said Mike Bellin, a partner at PwC who leads the firm’s US IPO practice. Some offerings, however, have faced delays. Elliot Han, chief investment officer at C1 Fund, said that the fourth quarter could have seen an even higher number of IPOs. He pointed to the federal government’s prolonged shutdown as a key factor that pushed several listings into the first quarter of 2026. Han also noted that heightened stock market volatility toward the end of the third quarter added further complications. Featured image from DALL-E, chart from TradingView.com
24 Jan 2026, 05:00
Bitcoin Indicator Falls Back To Post-Bear Market Levels: Investors Approach A Key Decision Point
Bitcoin is trading below the $90,000 level once again, as the market continues to drift through a phase defined by indecision, rising caution, and growing fear. After repeated failures to reclaim this psychological threshold, price action has started to reflect a lack of conviction on both sides, with buyers hesitating to step in aggressively and sellers pressing every rebound attempt. While the broader trend has not fully collapsed, the inability to hold key levels is increasing uncertainty around Bitcoin’s next major move. Related Reading: XRP Distribution Phase Continues, But Funding Rates Suggest Shorts Are Overextended Top analyst Darkfost argues that on-chain signals are starting to mirror conditions typically seen near the end of prolonged drawdowns. According to his analysis, Bitcoin’s unrealized profits and losses are sliding back toward levels that have historically appeared only at the exit of bear markets, when the market has already absorbed a deep reset in sentiment. This shift suggests that stress is building under the surface, even if price has not yet entered a full capitulation phase. Since Bitcoin’s last all-time high, Darkfost notes that many late-arriving investors have moved into uncomfortable territory, facing mounting downside pressure as the market cools. As a result, unrealized profits are shrinking, unrealized losses are expanding, and the overall balance continues to deteriorate—an environment that often forces traders into a decisive choice between holding through volatility or exiting under stress. Decision Point For Bitcoin Investors Darkfost highlighted a chart based on an adjusted version of NUPL (Net Unrealized Profit/Loss), designed to capture investor stress more accurately during shifting market regimes. Instead of relying solely on the standard market cap, the model incorporates the realized capitalization of both Short-Term Holders (STHs) and Long-Term Holders (LTHs), then compares that blended realized foundation against Bitcoin’s traditional market cap. The result is a clearer view of how much profit or loss sits “on paper” across the market, filtered through a more structural lens. To reduce noise and better define trend shifts, the metric is smoothed using an average, producing what Darkfost refers to as aNUPL. The key takeaway is that Bitcoin is approaching levels that have historically forced investors into a binary decision. When unrealized profits compress and unrealized losses expand to these ranges, holders typically face two outcomes: hold and continue accumulating, or capitulate and lock in losses. That difference in behavior becomes critical because it shapes liquidity, sentiment, and the next directional trend. If long-term participants absorb the pressure and keep holding, the market can stabilize and rotate back into recovery. But if selling accelerates from stressed cohorts, the decline can deepen into a broader bear phase. This is why tracking realized and unrealized profit dynamics remains essential, especially during periods of uncertainty. Related Reading: Bitcoin Supply In Profit Stalls At 71%: Still Not Enough For A Sustainable Recovery Bitcoin Consolidates After Sharp Weekly Breakdown Bitcoin is trading around $89,000 on the weekly chart after a steep selloff that pushed the price out of its prior distribution zone. The latest candle reflects heavy downside pressure, with BTC dropping roughly 4.8% on the week and struggling to stabilize near a key pivot that has repeatedly acted as support and resistance throughout the cycle. After failing to hold above the psychological $90,000 threshold, the market is now trapped in a tight consolidation range, suggesting traders are waiting for confirmation before committing to a larger move. Related Reading: Ethereum Supply Tightens On Binance As Reserves Hit Lowest Level Since 2016 From a trend standpoint, Bitcoin remains vulnerable as it trades below the blue moving average, which is now acting as overhead resistance near the low-$100K region. The rejection from that dynamic level aligns with the broader structure: BTC topped near the mid-$120K range, then entered a sharp corrective leg that reset momentum into early 2026. While the green moving average continues to slope upward and is approaching the current price zone, the market has not yet shown the strength needed to reclaim its former trend trajectory. Importantly, the weekly structure is now compressing. If buyers can defend the $88K–$90K region and push BTC back above $92K–$95K, it would signal a recovery attempt toward the moving average band. However, a sustained failure here increases the risk of a deeper retracement toward the low-$80K zone, where prior demand previously emerged. Featured image from ChatGPT, chart from TradingView.com
24 Jan 2026, 04:56
COMP Market Commentary: January 24, 2026 Downtrend and Critical Support Test
COMP testing critical support at $24.13, bearish trend strengthening with RSI 34.85 and MACD negativity. BTC downtrend increasing altcoin pressure, while a $23.74 breakdown could accelerate the dec...
