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26 Jan 2026, 19:55

Bitwise on-chain vault launches on Morpho, unlocking a groundbreaking 6% yield opportunity for DeFi

BitcoinWorld Bitwise on-chain vault launches on Morpho, unlocking a groundbreaking 6% yield opportunity for DeFi In a significant move for institutional decentralized finance, asset manager Bitwise has launched its first on-chain vault through the Morpho protocol, deploying USDC in overcollateralized lending markets with a target yield of up to 6%. This development, reported by The Block on April 9, 2025, signals a pivotal moment for traditional finance integration with DeFi’s core lending mechanisms. The launch represents a strategic expansion for Bitwise, a firm renowned for its cryptocurrency index funds and ETFs, into active, on-chain yield strategies. Consequently, this vault provides a regulated bridge for institutional capital seeking exposure to decentralized finance yields while managing counterparty risk through overcollateralization. Bitwise on-chain vault marks a new DeFi chapter The newly launched Bitwise on-chain vault operates directly on the Ethereum blockchain using the Morpho Blue protocol. Morpho Blue serves as a permissionless and efficient meta-layer for peer-to-peer lending. It allows vault creators like Bitwise to deploy capital into isolated, custom lending markets. Specifically, the Bitwise vault utilizes USDC, a fully-regulated dollar stablecoin, within these predefined markets. The protocol’s architecture requires all loans to be overcollateralized, meaning borrowers must lock crypto assets worth more than the loan value. This mechanism substantially mitigates default risk for vault depositors. Therefore, the vault offers a compelling yield target by tapping into organic borrowing demand within the DeFi ecosystem. Jonathan Man, Head of Multi-Strategy Solutions at Bitwise, provided crucial context for the launch. He confirmed the vault’s initial focus on USDC but indicated plans for future expansion. “The vault may support other stablecoins and crypto assets in the future,” Man stated. He further elaborated on Bitwise’s broader vision, noting the firm could expand into various DeFi strategies. These potential strategies include real-world asset (RWA) tokenization and providing liquidity to decentralized exchanges (DEXs). This statement underscores a long-term commitment to building a diversified suite of on-chain products. The move aligns with a growing trend of TradFi institutions constructing modular DeFi offerings. Institutional adoption drives DeFi lending evolution The launch is not an isolated event but part of a larger narrative of institutional adoption in decentralized finance. Over the past two years, major asset managers and banks have progressively entered the space. They often start with custody and spot ETFs before exploring yield-generating activities. The Morpho protocol, with its focus on capital efficiency and risk isolation, has emerged as a preferred infrastructure layer for these sophisticated entrants. Its design allows institutions to create bespoke markets with specific risk parameters, a feature absent in more pooled protocols like Aave or Compound. This control is paramount for compliance and risk management teams. The competitive landscape for institutional DeFi yield includes several key players: Traditional Money Markets: Offer yields around 4-5% but are subject to central bank policy and banking system risks. On-Chain Lending Pools (Aave/Compound): Provide variable yields but involve exposure to a shared liquidity pool and communal risk parameters. Morpho Blue Vaults: Enable isolated markets with tailored risk, often allowing for more competitive and stable yields through direct market creation. Bitwise’s entry validates the latter model. It demonstrates that institutional capital demands both yield and precise risk compartmentalization. Furthermore, the 6% target yield, while subject to market conditions, is strategically positioned. It aims to be attractive compared to traditional fixed income while remaining achievable through sustainable DeFi mechanics. The vault’s performance will likely influence how other asset managers structure their own on-chain products. Expert analysis on risk, yield, and market impact Financial analysts highlight several critical factors behind this launch. First, the choice of overcollateralized lending is a deliberate risk-off strategy. It prioritizes capital preservation while chasing yield, a familiar approach for institutional portfolios. Second, using USDC provides a stable value denominator, avoiding the volatility of crypto-native assets like ETH for the principal. Third, the Morpho Blue framework minimizes smart contract risk by utilizing a simple, audited, and battle-tested core codebase. These technical and strategic choices collectively build a product that meets the high bar of institutional due diligence. The potential market impact is substantial. Bitwise’s vault acts as a proof-of-concept for other regulated entities. Success could trigger a wave of similar products, increasing total value locked (TVL) in permissionless DeFi protocols. However, analysts also note challenges. The yield is not guaranteed and depends on borrowing demand. Regulatory clarity, especially regarding the treatment of on-chain yield, remains an evolving area. Despite these considerations, the launch is widely viewed as a net positive. It brings professional risk management and significant capital to the DeFi lending space, potentially increasing its liquidity and stability. Future roadmap for Bitwise and on-chain finance Looking ahead, Jonathan Man’s comments point to a dynamic roadmap. The expansion into other stablecoins like DAI or USDT seems a logical next step. It would diversify the vault’s base assets and tap into different borrower communities. More notably, the mention of RWA tokenization and DEX liquidity provision reveals a broader ambition. RWA strategies involve tokenizing real-world debt, like treasury bills or corporate bonds, on-chain. Providing DEX liquidity would involve supplying trading pairs to decentralized exchanges to earn fee revenue. These are more complex strategies than basic lending. The following table contrasts the initial vault strategy with potential future avenues: Strategy Asset Focus Primary Risk Yield Driver Current: Overcollateralized Lending USDC Smart contract, borrower liquidation Interest rates from borrowers Future: RWA Tokenization Tokenized real-world debt Off-chain counterparty, regulatory Interest from real-world assets Future: DEX Liquidity Various crypto asset pairs Impermanent loss, market volatility Trading fees from the exchange This phased approach allows Bitwise to build institutional comfort gradually. It starts with a relatively straightforward yield product before introducing more complex on-chain financial engineering. The success of this first vault will directly fund and justify these future explorations. Industry observers will closely monitor the vault’s uptake, yield performance, and any subsequent product announcements from Bitwise. Conclusion The launch of the Bitwise on-chain vault on the Morpho protocol is a landmark event in the convergence of traditional and decentralized finance. It provides a tangible, yield-generating product that leverages DeFi’s efficiency while adhering to institutional risk standards. By targeting a 6% yield through overcollateralized USDC lending, Bitwise offers a compelling value proposition. Furthermore, the stated future plans for RWA tokenization and DEX liquidity signal a deep, long-term commitment to the on-chain ecosystem. This Bitwise on-chain vault initiative, therefore, serves as both a practical investment vehicle and a strategic blueprint for the future of institutional participation in decentralized finance. FAQs Q1: What is the Bitwise on-chain vault? The Bitwise on-chain vault is a new decentralized finance (DeFi) product launched by asset manager Bitwise on the Morpho Blue protocol. It allows investors to deposit USDC into overcollateralized lending markets with the goal of earning a yield, currently targeted at up to 6%. Q2: How does the vault generate yield? The vault generates yield by lending deposited USDC to borrowers on the Morpho protocol. These borrowers must post crypto collateral worth more than the loan value (overcollateralization). The interest paid by these borrowers, after protocol fees, creates the yield for vault depositors. Q3: What are the main risks of using this vault? The primary risks include smart contract risk (bugs in the Morpho or vault code), the risk that borrowers’ collateral is liquidated at unfavorable prices, and the variable nature of the yield, which depends on borrowing demand. The vault uses overcollateralization to significantly reduce default risk. Q4: How is this different from a traditional savings account? Unlike a bank savings account, this is a non-custodial, on-chain product. The yield is determined by decentralized market forces, not a central bank. It also involves different risk profiles, including exposure to blockchain technology and crypto asset collateral, but aims to offer a potentially higher return. Q5: What does Bitwise plan to do next in DeFi? According to Bitwise’s Jonathan Man, the firm may expand the vault to support other stablecoins and crypto assets. They are also exploring future DeFi strategies like real-world asset (RWA) tokenization and providing liquidity to decentralized exchanges (DEXs). This post Bitwise on-chain vault launches on Morpho, unlocking a groundbreaking 6% yield opportunity for DeFi first appeared on BitcoinWorld .

26 Jan 2026, 19:30

Expert Who Nailed The Bitcoin Top Now Says Buy At These Levels

Chris Burniske, cofounder of Placeholder VC and former crypto lead at Ark Invest, is mapping out where he would consider stepping back into Bitcoin if the market keeps sliding, after earning fresh credit on X for calling major turning points this cycle. His framework lands in the mid-$80,000s down to the low-$50,000s, while a separate technical view from analyst Aksel Kibar points to a broader “base building” process with support clustered in the mid-$70,000s. Price Levels Where To Buy Bitcoin Burniske wrote that he is “not a buyer yet,” but outlined several price areas he’s monitoring. In his view, roughly $80,000 matters as the November 2025 low and a local trough of the current downswing. Below that, he highlighted roughly $74,000, tying it to the April 2025 low and describing it as the “Tariff Tantrum” bottom; he also noted it sits just under Strategy’s (MSTR) stated Bitcoin cost basis of around $76,000. Related Reading: Bitcoin Whale Demand Hits Extreme Levels As Next Rally Loads Up He then pointed to around $70,000 as the top of the prior $50,000–$70,000 band near the 2021 high, before shifting to a more structural level near $58,000. That zone, he wrote, aligns with the 200-week simple moving average and an on-chain cost basis, with RV around $56,000. Finally, he flagged $50,000 and below as a psychological line, arguing that a break under it would likely revive “death of BTC” narratives. I’m not a buyer yet, but if I were to be a buyer, imo the areas to watch for $BTC are: ~$80K: Nov ’25 low, local low of this “bear” ~$74K: April ’25 low, Tariff Tantrum low, just below $MSTR‘s cost basis (~$76K) ~$70K: Top of $50-70K range, near ’21 high ~$58K: 200W SMA &… — Chris Burniske (@cburniske) January 25, 2026 Burniske’s posture is deliberately non-committal on timing. “Importantly, I don’t care what happens,” he wrote, adding that if Bitcoin rallies he will “ride what I have and diversify,” while a deeper unwind would have him buying more Bitcoin and “select crypto assets.” The thread also touched altcoins. Asked how he thinks about alts versus Bitcoin, Burniske said it’s “best imo to buy alts after you think btc is near bottom,” reinforcing that he’s treating BTC’s downside process as the key gating factor for broader risk-taking. On positioning, he said he is sitting “in treasuries, where yield > inflation,” and when asked about an upside level that would force him back in, he replied that he “wouldn’t chase,” preferring to hold existing exposure rather than re-risk at higher prices. Related Reading: Bitcoin Stuck In Bear Mode For 83 Days: Trend Pulse Confirms Structural Weakness Burniske’s renewed attention followed praise from Anthony Pompliano, who told him: “You nailed the SOL bottom and the BTC top over this cycle.” Burniske’s reputation for calling tops is partly tied to an October 2025 post in which he argued the market had likely been structurally damaged after a sharp selloff. “We can always get another weak bounce, but I’ve taken action accordingly,” he wrote at the time. “I’ll likely get interested in the market again when I see BTC $75K or lower.” Breakdown Or Bottoming Phase? Separately, veteran technician Aksel Kibar posted a BTCUSD daily chart on Sunday without additional commentary. When asked directly about a breakout or breakdown, Kibar cautioned against overweighting diagonal formations: “Not giving too much weight to diagonal short-term patterns breakout/breakdown. I think this is part of the base building, searching for a bottom.” Kibar had previously framed “technical support” as being “lower between 73.7K and 76.5K,” suggesting that if Bitcoin is indeed in a basing phase, the market may need time and repeated tests of those lower bands before a more durable trend reasserts itself. At press time, BTC traded at $87,812. Featured image created with DALL.E, chart from TradingView.com

26 Jan 2026, 19:01

Gold Smashes $5,100 Record as Trump Tariff Threat Looms; ETH Slides Under $2,900

Gold climbed to a fresh all-time high, crossing $5,100 an ounce on Monday, extending its record-breaking run as investors seek shelter amid rising geopolitical tensions and global fiscal risks. Spot gold prices gained 2.4%, trading at $5,102 an ounce, before paring gains to $5,086. The surge comes days after President Donald Trump warned Canada that the U.S. would impose a 100% tariff on goods sold in the U.S. if the country strikes a trade deal with China. “If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the U.S.A.,” Trump wrote in a Truth Social post . However, Ethereum is moving in the opposite direction, trading at $2,877.15 with a 24-hour trading volume of $24.69 billion. The token now sits 36% below its $4,953.73 peak. The $5K Race Ends The “Gold versus ETH: Which hits $5K first?” market on Myriad has reached a resolution, with gold hitting the $5k mark first. The precious metal jumped 7.28% on the week and was recently priced at $4,938 before Monday’s breakout. Source: Myriad While gold is typically compared to Bitcoin, predictors on Myriad favored ETH for months, betting on its volatile upward mobility, but they’ve become less confident as crypto markets slide. The prediction market opened in October 2025. Institutional Flows Tell the Story Western ETF holdings have climbed by about 500 tonnes since the start of 2025. Goldman Sachs lifted its December 2026 gold price forecast to $5,400 an ounce, up from $4,900, arguing that hedges against global macro and policy risks have become “sticky.” Central bank purchases remain robust as Goldman estimates central-bank purchases are averaging around 60 tonnes a month, far above the pre-2022 average of 17 tonnes. “While this rally in gold has not, and will not, be linear, we believe the trends driving this rebasing higher in gold prices are not exhausted,” Natasha Kaneva, head of Global Commodities Strategy at J.P. Morgan, stated . “The long-term trend of official reserve and investor diversification into gold has further to run.” Ethereum saw $630 million in outflows last week, reflecting bearish sentiment as investors withdraw funds. A whale that had been dormant for nine years transferred 50,000 ETH, worth $145 million, to a Gemini wallet, a move often associated with liquidation intent. According to @EmberCN monitoring, a dormant 9-year ETH whale address activated in the last 12 hours, transferring 50,000 ETH (worth $145 million) to Gemini exchange. The address withdrew 135,000 ETH ($12.17 million) from Bitfinex 9 years ago when ETH was priced ~$90, representing… pic.twitter.com/akGYWcKoVC — Wu Blockchain (@WuBlockchain) January 26, 2026 Geopolitical Catalyst The precious metal’s surge comes as flashpoints from Greenland and Venezuela to the Middle East reflect higher geopolitical risk. Trump’s tariff threat follows tensions that mounted after Canadian Prime Minister Mark Carney delivered an address at the World Economic Forum in Davos that was widely seen as a rebuke of the Trump administration’s policies. Earlier this month, Carney announced that Canada and China reached a preliminary deal to remove trade barriers. Under the tentative agreement, Beijing cut tariffs on some Canadian agricultural products, while Ottawa increased quotas for imports of Chinese electric vehicles. Canadian Prime Minister Mark Carney said on Sunday that Ottawa has no plans to pursue a free trade deal with China, noting that the recent agreement only reduces tariffs on select sectors. Carney’s remarks came a day after President Trump threatened a 100% tariff on Canadian goods. What Desks Are Watching The gold-crypto divergence indicates a broader risk recalibration. Following a record-breaking 2025, gold entered 2026 with momentum intact as geopolitical tensions, falling real interest rates, and efforts by investors and central banks to diversify away from the dollar reinforce its safe-haven role. ETH failed to reclaim its “digital gold” narrative during peak macro stress. Analysts note that if ETH maintains support around the $2,500 level, it could reach an all-time high of $6,000 by 2026, but that thesis requires risk appetite to return. In August 2025, Trump raised the tariff on Canadian goods to 35%. A 100% tariff threat marks a major escalation. Markets are pricing in two interest-rate cuts by the Federal Reserve later this year. Traders await this week’s FOMC meeting, where the central bank is widely expected to hold rates steady. The post Gold Smashes $5,100 Record as Trump Tariff Threat Looms; ETH Slides Under $2,900 appeared first on Cryptonews .

26 Jan 2026, 18:36

Evening digest: Nvidia’s bet CoreWeave, gold breaks $5,100, Bitcoin teeters at $88K

Markets opened the week with nerves on edge as Nvidia doubled down on CoreWeave in a $2 billion vote for AI infrastructure, even as sceptics questioned whether chipmakers’ funding customers signals late-cycle froth. Risk sentiment also turned defensive as gold blasted through $5,100 and silver hit fresh records on tariff threats and geopolitical strain. In US courts, Meta, TikTok, and YouTube faced a landmark addiction lawsuit with broader liability risks. Bitcoin, meanwhile, hovered near a critical support zone as shutdown odds rose. Nvidia’s $2 billion CoreWeave bet Nvidia poured another $2 billion into CoreWeave on Monday , acquiring 23 million shares at $87.20 each to become the second-largest shareholder and cementing its strategy beyond chip sales into infrastructure dominance. The neocloud builder now banks an additional $6 billion from Nvidia’s prior 2032 services commitment, with both firms racing to construct 5 gigawatts of AI data center capacity by 2030, roughly equivalent to powering 4 million US households. CoreWeave will deploy Nvidia’s forthcoming CPU and storage systems first, gaining early-mover advantage on breakthrough tech. CEO Jensen Huang framed this as foundational infrastructure for the “AI industrial revolution,” but Wall Street increasingly questions whether Nvidia funding its own customers signals an AI bubble or calculated vertical integration. CoreWeave stock surged 12%, though recent volatility over massive debt levels, $14.2 billion to Meta, $22.4 billion to OpenAI, keeps bears circling. Meta, TikTok, YouTube face lawsuit over addiction claims Meta, TikTok, and YouTube face their first courtroom gauntlet on Tuesday in Los Angeles as a 19-year-old plaintiff known as K.G.M. alleges the platforms deliberately engineered addictive features driving her depression, self-harm, and suicidal ideation. Mark Zuckerberg will testify; Snap already settled for undisclosed terms last week. The bellwether case could trigger over 1,000 pending personal injury lawsuits, representing 1,500+ claims across the MDL, far exceeding tobacco litigation in scope. K.G.M. claims infinite scrolling, algorithmic recommendations, and sextortion enabled by Instagram’s lax moderation (taking two weeks to address exploitation) produced clinical mental health deterioration. YouTube argues it differs fundamentally from social media; TikTok remains silent on strategy. Tech companies countered Tuesday morning by highlighting parental control investments and teen safety features, hiring opioid-litigation veteran lawyers from Covington & Burling to draw parallels to corporations denied addiction liability previously. Gold vaults past $5,100 Spot gold pierced the $5,100 barrier Monday , hitting $5,110.50 intraday as investors capitulated into the ultimate fear asset amid Trump’s 100% Canada tariff threats and escalating global tensions. The 2.2% surge extends an unprecedented 64% 2025 rally, the largest annual gain since 1979, and prices have already climbed 18% year-to-date. Central banks remain relentless buyers, with Goldman Sachs calculating monthly acquisitions at 60 tonnes versus pre-2023 averages of 17 tonnes, while China notched its 14th consecutive month of buying in December. The “debasement trade” increasingly dominates: investors fleeing currencies and Treasuries amid advanced-economy debt spirals and fiscal deterioration see gold as inflation-proof wealth preservation. Silver exploded to a record $112+ an ounce, up 147% in 2025, and platinum touched $2,897. Bitcoin caught between $88K support and $74K capitulation Bitcoin clung to $87,000–$88,500 Monday as US shutdown odds surged to 78% , triggering a classic risk-off rotation that punished leveraged longs and widened the CME gap from weekend trading. The structure is deteriorating: spot ETFs bled $1.3 billion in two sessions; liquidation heatmaps show dense long traps around $88,000–$89,000, making the current level a “hair-trigger zone” where momentum breaks either way. Technical layers reveal a four-stage downside map if macro stress persists. First target: $82,000–$85,000 completes a two-month consolidation test (3–6% down). If breached decisively, April 2025 lows at $74,000 represent the medium-term objective, a 15.6% decline that would signal the current bounce failed. Catastrophic break at $68,000 (200-week EMA) opens $53,000 terminal flushing if broader credit stress hits. The post Evening digest: Nvidia's bet CoreWeave, gold breaks $5,100, Bitcoin teeters at $88K appeared first on Invezz

26 Jan 2026, 18:30

Bitmine Scoops up 40,302 Ethereum, Pushing ETH Stack to 4.243M Tokens

Bitmine Immersion Technologies (BMNR) has taken another oversized step into the crypto treasury race, revealing ethereum holdings that now rival sovereign-scale balance sheets. Bitmine Ramps up Ethereum Accumulation Bitmine said on Monday that its ethereum ( ETH) holdings have climbed to 4.243 million tokens, helping lift total crypto and cash assets to $12.8 billion as

26 Jan 2026, 18:28

Carry trades in emerging markets up in 2026, as currencies hit multi-year highs

People who moved their money from the dollar into emerging market currencies are seeing strong profits at the start of 2026, and financial experts at major banks think this winning streak will keep going after last year’s impressive gains. These investment approaches, known as carry trades, have already climbed 1.3% in 2026. A Bloomberg index that tracks returns from eight emerging markets shows these strategies are continuing their momentum from 2023, when they jumped 18%, the best performance since 2009. Carry trades work by buying currencies from countries with high interest rates using borrowed money from countries where borrowing costs are cheaper. On Monday, the Bloomberg index stood above 291, coming within 5% of the record set back in 2011. Currencies ranging from South Africa’s rand to Colombia’s peso are trading at their highest levels in years. Analysts at Morgan Stanley, Bank of America Corp., and Citigroup Inc. all expect these gains to continue building. Beyond just currency values going up, these strategies are also making money because real interest rates remain high across the developing world. High interest rates drive strategy success Central banks in many emerging countries are only slowly cutting interest rates, even though inflation numbers show prices are rising more slowly. “For carry trades, we are looking at countries where monetary policy is tight and central banks are considered credible,” said James Lord, who leads emerging market strategy at Morgan Stanley. He pointed to Brazil’s real, Turkey’s lira, and the Czech koruna as his top picks for 2026. Latin American currencies are doing particularly well. Brazil’s real has already delivered returns of 4.3% so far this year, adding to last year’s gain of 23.5%. The country keeps interest rates at 15% even though inflation has moved closer to what the central bank wants. Citi strategists are also suggesting investors buy the real against the dollar, along with the Turkish lira. However, not all emerging currencies are succeeding. As reported by Cryptopolitan previously, India’s rupee, which was the worst performer last year, continues to lose ground with a drop of about 2% in carry trade terms this year. Indonesia’s rupiah has also caused losses for investors. The Bloomberg index shows the record year for carry strategies was 2003, with a 25% return. For investors to see similar big gains this time, the dollar needs to keep weakening, and emerging currency swings must stay small. Traders are watching JPMorgan Chase & Co’s volatility gauge closely, which hit a three-week high recently after a long period of calm. President Donald Trump’s policies are playing a major role in pushing down the dollar’s value. Recently, Trump threatened to impose 10% tariffs on European countries in a dispute over Greenland, which rattled markets and added to concerns about the dollar. Financial markets see this as increasing political risk around the US currency. Dollar’s reserve currency status under question There are also growing worries about the dollar’s position as the world’s main reserve currency. With US policy becoming less predictable, European Union countries that hold $8 trillion in US assets may have leverage in trade disputes. Trump’s tariffs represent the biggest US tax increase since 1993 , equal to 0.55% of the country’s economic output, according to analysts. Fears of a wider trade war are building as these policies take shape. Bank of America strategist Alex Cohen thinks carry trades will keep doing well, but only if market volatility stays low. “That’s a big ‘if’ as we sit here today,” Cohen said, pointing to possible conflicts around the world that could shake things up. Despite these risks, the current environment of high emerging market interest rates combined with dollar weakness continues to favor investors willing to take on emerging market currencies. Whether this trend can match the historic returns of 2003 remains uncertain, but major banks are betting the conditions are in place for continued gains throughout 2026. Emerging markets have shown surprising strength against expectations that trade tensions would hurt them most. With central banks in developing countries maintaining credibility and keeping tight monetary policy, the fundamentals appear solid for now. However, any sudden spike in volatility or major geopolitical event could quickly reverse these gains. The success of carry trades in 2026 will depend on whether the current calm in currency markets can hold, and whether Trump’s unpredictable policy moves continue to weaken the dollar without triggering a broader financial crisis. The smartest crypto minds already read our newsletter. Want in? Join them .