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25 Jan 2026, 17:35

Traders are on alert for possible Japan intervention after Prime Minister Takaichi warned against speculative currency moves

FX desks are opening the week on edge after Japan’s government sent a clear warning that recent currency moves have gone too far, putting traders on alert for possible intervention aimed at stopping the yen slide. Prime Minister Takaichi Sanae said action was on the table if trading turns speculative and abnormal, a line that immediately changed market behavior after weeks of one‑way positioning. Tension spiked late Friday during US trading when dealers said the Federal Reserve Bank of New York reached out to financial institutions to ask about the yen exchange rate. That single move was enough to rattle positions. Japan’s top currency official had already refused earlier that day to say whether Tokyo had carried out its own rate check, keeping markets guessing and pushing volatility higher into the close. US rate checks jolt FX desks and squeeze short positions Talk of intervention gathered pace after reports of the New York Fed’s calls circulated across trading floors. Michael Brown at Pepperstone said rate checks are usually the final warning before action and added that the Takaichi administration shows far less patience for speculative FX moves than past governments. That message landed fast. Traders who had built heavy short exposure were forced to rethink. Short positions linked to the yen had grown to their largest level in more than ten years. As the week ended, the currency swung sharply. It reversed a drop toward levels last seen in 2024 and surged as much as 1.75 percent to 155.63 per dollar. That move marked the biggest one‑day gain since August and left many positions underwater. Takaichi addressed the issue directly on Sunday during a televised debate with party leaders. She said it was not her role to comment on matters decided by markets but stressed that all necessary steps would be taken to deal with speculative and highly abnormal moves. She did not name a specific market, but officials in recent days have flagged risks tied to bond yields as well as the yen. Long‑dated Japanese government bonds had already sent warning signs. Yields on the longest maturities jumped to record highs early last week before pulling back, adding pressure on policymakers as currency swings and debt costs collided. Nick Twidale of AT Global Markets said traders should stay cautious at the Monday open after Takaichi’s comments. He said Japan’s currency could trade near 155 per dollar at the start of the week, a level now watched closely after last week’s violent reversal. Election pressure and US coordination reshape intervention risks The rebound began soon after Bank of Japan Governor Kazuo Ueda wrapped up his post‑decision press conference on Friday. Hours later, finance ministry official Atsushi Mimura declined to say whether authorities had stepped in to support the yen, keeping the door wide open to speculation. Gains accelerated through the US session as Wall Street interpreted the rate checks as groundwork for possible intervention, with some traders even pricing in the chance of US participation. Twidale said the market still wants to stay short but will tread carefully given the official warnings. He added that any confirmed US involvement would have effects far beyond the yen, spilling into global markets. Some traders drew comparisons to the Plaza Accord of 1985, when major economies coordinated to weaken the dollar. Debate around fixing imbalances tied to persistent dollar strength had already surfaced more than a year ago, making the idea less far‑fetched. The US has stepped into currency markets only three times since 1996, according to New York Fed data. The last case came in 2011, when G7 nations sold the yen together after Japan’s earthquake to stabilize trading. Anthony Doyle at Pinnacle Investment Management said Japan cannot fix the yen alone without risking domestic strain or global fallout, which makes coordination more realistic. He said calls from the US Treasury usually signal the story has moved beyond normal FX noise. Tokyo has history here. The government spent nearly $100 billion buying the yen in 2024. Each of the four interventions happened near 160 per dollar, turning that level into an informal trigger point. Homin Lee at Lombard Odier said real action is required if authorities want to anchor USD/JPY and noted that joint steps by Japan and the US would stand out as unusually direct coordination. Lee added that 160 is a clean number that cuts through political noise ahead of Japan’s snap lower‑house election in February. Japan votes on Feb. 8, and Takaichi’s pledge to cut food taxes has already shaken the debt market. The 40‑year bond yield jumped past 4 percent, a level not seen since its 2007 launch and a first for any sovereign maturity in more than thirty years. The smartest crypto minds already read our newsletter. Want in? Join them .

25 Jan 2026, 17:05

The upcoming USMCA review risks raising tariffs on Canada’s exports to over 7%

The USMCA review is already heating up, and President Donald Trump just threw more fuel on it. On Saturday, he threatened Canada with 100% tariffs if Prime Minister Mark Carney goes ahead with a trade deal with China. Trump said Carney would be “sorely mistaken” to think the U.S. will let Canada turn into a dumping ground for Chinese products. Carney’s deal with Chinese President Xi Jinping was announced on January 16. It allows up to 49,000 electric vehicles from China to enter Canada each year, which is under 3% of the Canadian new vehicle market. In return, Canada gets lower tariffs on its food exports to China. Trump didn’t like it . At first, he said it was fine, but now he’s warning Canada it could cost them if they go further with Beijing. Trade officials defend deal as tensions rise Dominic LeBlanc, who handles U.S. trade for Canada, fired back. He said there’s “no pursuit of a free trade agreement with China.” He called the deal limited and only about fixing tariff problems. He also described the U.S.-Canada relationship as a “remarkable partnership,” despite Trump’s attacks. Carney, speaking in Ottawa, said the plan is to pull tariffs back to where they were in 2023 but keep the EV cap in place. “We’re going to use the expression ‘back to the future’ with respect to EVs, with respect to agriculture,” he said. He claimed it sticks to the rules under the USMCA. Trump’s reaction comes just months before the official review kicks off. The deal marks its sixth anniversary on July 1, and if the U.S., Canada, and Mexico don’t agree to extend it for another 16 years, they’ll be stuck doing yearly reviews until the pact dies in 2036. Any of the three can also pull out with six months’ notice. That clause’s now sitting on the table, and everyone knows it. Economists told Bloomberg they still expect the review to end with a deal, but Trump’s threats are making things shaky. Dominique Lapointe, from Manulife Investment Management, said the new warnings add “downside risks” to the upcoming talks. Canada’s economy vulnerable as review deadline nears This is not great news for Canada, which sends most of its exports to the U.S. Sectors like steel, autos, aluminum, and lumber are already under pressure from Trump’s sector-specific tariffs. But there’s still a large chunk of goods that get through tariff-free under USMCA. If that protection disappears, economists say the average rate on Canada’s exports to the U.S. could spike to over 7%. Trump’s already said this month that he sees “no real advantage” to keeping USMCA, even though it was one of his big wins when he replaced NAFTA. But now he’s acting like the deal is holding America back. That’s not what Derek Holt from Bank of Nova Scotia sees. He said most American industries actually stood up for the deal during official hearings. In a Friday report, he wrote, “The vast majority of U.S. industries that testified at USTR hearings strongly supported the USMCA deal.” Businesses in Canada aren’t feeling steady either. A survey by the Bank of Canada showed most companies are pausing growth plans. They’re only spending money on keeping things running, not expanding. Bloomberg’s economists said Canada’s investment could go up by 1.3% in 2026, but only if the USMCA talks go well. Last year, it was just 0.6%. Randall Bartlett from Desjardins said the noise and drama were always going to be part of it. He said, “It was never going to be a positive environment for business investment in Canada, particularly in the first part of this year.” Even Matthew Holmes from the Canadian Chamber of Commerce had concerns. He said companies are already dealing with the fallout and urged both sides to “come to a better understanding quickly.” Bartlett added that Canada’s talks with China might end up helping them during the USMCA battle. “There are other major trading partners that want to work with us,” he said. And if Canada shifts away from depending only on the U.S., it could create problems for American businesses too. Trump himself seemed fine with the deal at first. On January 16, he said, “That’s OK, that’s what he should be doing. If you can get a deal with China, you should do that.” But now, he’s ready to hit back. The politics are changing fast. And with the USMCA review around the corner, the next few months look messy. If you're reading this, you’re already ahead. Stay there with our newsletter .

25 Jan 2026, 17:01

How SharpLink Aims to Be the Most 'Focused, Disciplined' Ethereum Treasury in 2026

Ethereum treasury firm SharpLink Gaming hopes to stand apart from the pack by focusing on the long-term—with shareholders top of mind.

25 Jan 2026, 16:35

U.S. stock market sees the weakest presidential first-year performance in 20 years under Trump

The stock market delivered positive returns during Donald Trump’s first year back as president, but the gains fell short compared to other recent presidential terms, marking the slowest start for any president in two decades. Market indexes climbed 13.3% between inauguration day and January 20, 2026, according to data from CFRA Research seen by CNN. While these returns appear solid on their own, they represent the smallest first-year increase for a president since George W. Bush began his second term in 2005. The performance also trailed Trump’s own previous record, during his initial term as president, markets jumped 24.1% in the first twelve months. Investors pushed stocks upward throughout the year, continuing a rally fueled largely by excitement surrounding artificial intelligence technology. Meanwhile, foreign markets beat U.S. stocks in 2025, a shift that hadn’t occurred in several years. However, the market didn’t start from scratch. Trump took office following two consecutive years where the S&P 500 had climbed more than 20% annually, a streak not seen since the 1990s. This meant expectations were already elevated when his second term began. Tariff turmoil triggers historic volatility spike The past year brought significant uncertainty as the administration changed direction repeatedly on key policies. Markets dropped close to bear market territory in April when confusion over tariff plans spooked investors. Prices then bounced back sharply after Trump stepped away from his harshest proposed measures. Overall, the S&P 500 hit 39 all-time highs during the year. By comparison, the index reached 62 record peaks in 2017 during Trump’s first year in office. Trump has shown he pays attention to market movements and sees them as a measure of how well his presidency is going. This week, he dismissed recent market declines tied to concerns about Greenland and tariffs as “peanuts,” predicting the market would soon be “doubled.” Hours after those comments, he pulled back on tariff threats, which helped stocks recover. Several factors supported market growth in 2025. The artificial intelligence sector remained a major draw for investors. People felt optimistic about potential Federal Reserve interest rate reductions. Company profits stayed strong. The economy held up better than many expected. Trump also signed the “One Big Beautiful Bill Act” during the summer months. The economic boost from that legislation could help markets continue rising this year. “The front-end loading of this stimulus is a big reason why the stock market did well the first year of this term,” Matt Maley, chief market strategist at Miller Tabak + Co, wrote in an email. Maley added that many investors believe the president plans to “let the economy run hot” through the midterm elections. While this doesn’t guarantee the second year will match the first year’s performance, he noted the administration clearly wants markets performing well this year, particularly in the five to six months before those elections. Fear gauge hits pandemic levels The year brought both gains and wild swings. The VIX , which measures how worried Wall Street feels, spiked to levels not seen since the pandemic when tariff confusion peaked in spring. “The only truly exceptional thing was that the VIX went over 50 for the first time since the pandemic during the height of trade policy uncertainty,” Nick Colas, co-founder at DataTrek Research, explained in an email. Tim Thomas, chief investment officer at Badgley Phelps Wealth Management, said he’s shifted some client accounts to be more “defensive” with less risky holdings. But he’s ultimately looking beyond short-term price swings and concentrating on fundamentals like earnings growth, the AI boom, and helpful government policies. “The market performance last year was pretty good,” Thomas said. “There is a lot of policy uncertainty out there. Policy uncertainty is hard to invest around, because, by its very nature, it can change in an instant.” After three straight years of strong performance, Wall Street experts generally expect the S&P 500 to keep climbing this year. But questions remain. The U.S. dollar has struggled recently while safe investments like gold and silver keep hitting new highs. Jim Hagerty, CEO at Bartlett Wealth Management, told his main lesson from the past year is that investors need to stay disciplined. “When markets have been really good, or occasionally when they’re scary, it can tempt people away from their disciplines,” Hagerty said. “I would just emphasize: stay disciplined.” If you're reading this, you’re already ahead. Stay there with our newsletter .

25 Jan 2026, 16:29

Bitcoin Price Suddenly Plunges Below $88K as Hourly Liquidations Explode

After a relatively quiet weekend when neither the buyers nor the sellers could regain control, BTC’s price is once again heading south to a new multi-day low of well below $88,000. The altcoins are in a similar situation, with ETH plunging beneath $2,900 and SOL dropping by over 2.5% in just an hour. BREAKING: Bitcoin falls below $88,000 as $60 million worth of levered longs are liquidated in 30 minutes. A government shutdown is now expected and President Trump has threatened 100% tariffs on Canada. US stock market futures will open in less than 7 hours. pic.twitter.com/40GxrMdRTI — The Kobeissi Letter (@KobeissiLetter) January 25, 2026 As the analysts from the Kobeissi Letter indicated, the most probable reasons behind the ongoing corrections are the expected US government shutdown after the Minneapolis shooting, which would be the second during Trump’s term now, and the tariffs the POTUS threatened to impose on Canada. As reported yesterday, he warned that he may slap a 100% tariff on its northern neighbor if it chooses to sign a significant deal with China. Similar to the events that took place during the previous weekend, BTC remained relatively stable at first but started to break down as the opening of the futures markets neared. This time, BTC dumped to a five-day low of $87,500 (for now), after it was rejected at $89,000 earlier today. The past hour has been violent for most altcoins, with some, such as SUI, SOL, ARB, PEPE, ENA, and ADA, dropping by over 2%. Ethereum has lost 1.5% of its value in the past 60 minutes alone and now struggles well below $2,900. The total value of wrecked positions in the past day sits at $250 million, but over 50% of that amount came in the last hour ($131 million, according to CoinGlass data). Over 130,000 traders have been wrecked daily, with the single-largest liquidated position taking place on Hyperliquid and was worth $6.3 million. Liquidation Data on CoinGlass The post Bitcoin Price Suddenly Plunges Below $88K as Hourly Liquidations Explode appeared first on CryptoPotato .

25 Jan 2026, 15:10

Pantera’s Franklin Bi says Wall Street is far less prepared for quantum computing than most people think

Writing on X in response to Justin Drake’s announcement that the Ethereum Foundation (EF) had created a dedicated post-quantum cryptography team, Franklin Bi, a general partner at Pantera Capital, challenged conventional assumptions about which sector is better positioned for the quantum transition. “People are over-estimating how quickly Wall Street will adapt to post-quantum cryptography,” he wrote . “Like any systemic software upgrade, it’ll be slow & chaotic with single points of failure for years.” Quantum computing continues to advance from a theoretical field to practical applications, and as more progress is being made, so is the attendant threat it poses to financial systems. Quantum computers capable of breaking current encryption standards could expose the cryptographic foundations protecting everything from bank transactions to blockchain wallets. Just this month, Christopher Wood, the global head of equity strategy at Jefferies, reported that he removed Bitcoin from his model portfolio. A long-term proponent for BTC’s attractiveness as a hedge against monetary debasement, the Greed & Fear newsletter author said he made the move in advance of quantum computing threats to the foundations of Bitcoin’s investment case. Pantera’s Bi favors blockchain networks over traditional financial institution s Bi favors blockchai n be cause of what he calls the “unique ability of blockchains to enact a system-wide software upgrade a t gl obal scale.” He pointed to Ethereum’s successful transition from proof-of-work to proof-of-stake in 2022—known as “The Merge”—as evidence of decentralized networks‘ readiness. According to an earlier Cryptopolitan report , Justin Drake revealed the formation of a post-quantum team led by Thomas Coratger, elevating quantum resistance to a top priority for the blockchain. The foundation is backing the initiative with two $1 million prizes and has already begun running multi-client post-quantum consensus test networks, with bi-weekly developer sessions now underway. Research from Chainalysis showed that approximately $718 billion in Bitcoin addresses remain vulnerable to quantum attacks using current cryptographic schemes. Is Wall Street ready for the quantum era? While major institutions like JPMorgan and HSBC have initiated quantum-safe pilot programs, industry surveys reveal concerning gaps. A recent study found that 65% of businesses claim quantum readiness, but most boards remain at the awareness stage rather than being in the active implementation phase. The Financial Services Information Sharing and Analysis Center warned against “crypto-procrastination” in a white paper. Europol’s Quantum Safe Financial Forum highlighted the complexity of coordinating changes across vendors, legacy systems, and international regulatory frameworks. Dean Yoost , former MUFG Union Bank board member, noted that artificial intelligence concerns are crowding out quantum preparedness at the board level, despite the existential nature of the cryptographic threat. The Bank for International Settlements and the European Central Bank have both issued warnings about systemic risks from delayed action. Traditional systems, as Bi noted, are “only as strong as their weakest links,” and the banking sector’s dependence on interconnected third-party vendors and central banks creates multiple vulnerability points and dependencies. Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program