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26 Jan 2026, 06:42
Morning brief: Gold tops $5,000, Yen volatility rattles markets
Global markets started the week on edge as investors grappled with geopolitical tensions, currency volatility, and shifting risk appetite across assets. Gold surged to fresh record highs above $5,000 an ounce, buoyed by safe-haven demand and a weaker dollar, while sharp swings in the Japanese yen reignited speculation over possible currency intervention. Elsewhere, Canada pushed back against US pressure over China trade ties, South Korea’s small-cap stocks surged, and cryptocurrencies slid as investors rotated away from risk. Safe havens rise as yen volatility hits Asian markets Gold surged past $5,000 per ounce on Monday, lifted by safety flows amid dollar weakness after a turbulent week marked by tensions over Greenland and Iran. Investors also remained unsettled after violent spikes in the Japanese yen. The yen was trading at 154.3 per dollar, following sharp moves on Friday that sparked speculation about potential intervention. According to Reuters sources, the New York Federal Reserve conducted rate checks on Friday, raising the possibility of joint US–Japan action to arrest the yen’s slide. “The market’s inclination is to short the yen but the possibility of co-ordination means it no longer is a one-way bet,” said Prashant Newnaha, senior rates strategist at TD Securities in Singapore, in the Reuters report. The prospect of coordinated intervention weighed on the dollar and broadly supported other currencies. Japan’s Nikkei fell about 1.6%, while S&P 500 futures slipped 0.14% and European futures were down 0.13% as traders awaited the Federal Reserve’s policy meeting later in the week. Japanese Prime Minister Sanae Takaichi said on Sunday her government would take necessary steps against speculative market moves. Carlos Casanova, senior Asia economist at UBP, said expectations alone could lend support to the currency, adding: “The Japanese yen is likely to stabilise to some extent – though the catalysts for significant appreciation remain limited – while long-term yields are expected to face continued pressure at their current elevated levels.” Canada pushes back on China trade amid Trump tariff threat Canada said it has no intention of pursuing a free trade agreement with China , Prime Minister Mark Carney said on Sunday, responding to warnings from US President Donald Trump, who has threatened punitive tariffs if Ottawa deepens ties with Beijing. Carney said Canada would respect its obligations under the Canada–US–Mexico Agreement and would not negotiate a free trade deal without notifying its North American partners. Trump has said he would impose a 100% tariff on Canadian exports if Ottawa “makes a deal” with Beijing. “If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” Trump wrote on Truth Social. Carney stressed that Canada’s recent “preliminary agreement” with China, concluded on Jan. 16, only lowers tariffs on selected goods and remains consistent with existing trade rules. “We have no intention of doing that with China or any other nonmarket economy,” Carney said. “What we have done with China is to rectify some issues that developed in the last couple of years.” South Korea small caps surge as retail frenzy builds South Korea’s small-cap stocks jumped to their highest level in more than four years, sharply outperforming the benchmark Kospi Index and signalling a broadening rally in local equities. The Kosdaq Index surged as much as 6.9%, triggering the Korea Exchange’s “sidecar” rule, which temporarily halts program trading to curb volatility. While the Kospi opened higher, it later slipped as much as 0.9% after hitting the historic 5,000 mark last week. Retail investors piled into higher-risk trades. The Samsung Kodex KOSDAQ150 Leverage ETF, which offers twice the exposure to the Kosdaq 150 Index, jumped as much as 23%. A Korea Financial Investment Association website used for mandatory investor training reportedly crashed amid heavy traffic. Bitcoin slides as investors retreat from risk Cryptocurrencies weakened as geopolitical concerns drove investors toward safe havens such as gold. Bitcoin dropped as much as 3.5% on Sunday to a 2026 low just above $86,000, before rebounding modestly to $87,733 in early Asian trading. Ether slid as much as 5.7% before recovering 2% to $2,872. Monday’s bounce “is more of a pause than a big bounce,” said Sean McNulty, APAC derivatives trading lead at FalconX in a Bloomberg report. “We are not seeing a ton of flows so far this morning.” Spot Bitcoin exchange-traded funds recorded five straight days of outflows totaling $1.7 billion last week in the US, according to Bloomberg data, underscoring fragile sentiment as investors navigate rising geopolitical and macroeconomic risks. The post Morning brief: Gold tops $5,000, Yen volatility rattles markets appeared first on Invezz
26 Jan 2026, 05:55
The XRP Ledger Now Hosts $150M+ Worth of Tokenized U.S. Treasury Debt
The XRP Ledger now hosts over $150 million worth of tokenized U.S. Treasury Debt amid a rapid increase in RWA value over the past year. Visit Website
26 Jan 2026, 05:45
The crypto market faces one of the most severe downturns in history
The global crypto markets fell sharply over the weekend, wiping out approximately $100 billion from the overall market capitalization. This comes as concerns about a potential US government shutdown deepened, prompting selling in digital crypto assets. As tensions in the crypto market escalated further, Senate Democrats threatened to block funding packages if they discovered they included funding for the Department of Homeland Security (DHS), a US federal executive department responsible for public security, including border management. Notably, this threat was issued against the backdrop of recent reputable reports of a case where federal agents shot and killed a man in Minneapolis, Minnesota’s largest city. Concerning the Senate Democrats’ warning, Chuck Schumer, the senior US senator from New York and the Senate Democratic Leader, alleged that, “Democrats wanted sensible changes in the Department of Homeland Security spending bill, but because Republicans won’t challenge President Trump, the DHS bill fails to address ICE’s issues. I will vote no.” To underscore the urgency of the situation, Schumer emphasized that Senate Democrats will oppose advancing the appropriations bill if it includes DHS funding. The crypto market faces one of the most severe downturns in history As the crypto market faces a tough time due to escalating global conflicts, data from TradingView showed that its capitalization dropped from a previous peak of $2.97 trillion to $2.87 trillion in just 6.5 hours by Sunday, January 25, at 9:30 pm UTC. Consequently, Bitcoin’s price declined by 3.4% in the past 24 hours. As the dominant cryptocurrency, BTC’s price movement affected other cryptocurrencies, such as Ether, which declined by about 5.3% during the same period. Apart from this incident, data from Gate, a top-tier, centralized cryptocurrency exchange, disclosed that leveraged crypto positions valued at over $360 million were liquidated in the last 24 hours, with $324 million in long positions closed. On the other hand, traders on major prediction markets, Kalshi and Polymarket, placed their bets anticipating an 80% probability that a US government shutdown would occur by Saturday, January 31. To break this probability down, sources noted that the likelihood of another shutdown by January 31 on prediction market Kalshi skyrocketed from below 10% on Saturday, January 24, to 78.6% on Sunday, January 25. For Polymarket, its prediction also surged to 80%. Just after making this prediction, traders began to panic amid deepening recession fears, following US President Donald Trump’s earlier assertion that he might raise tariffs on Canada to 100% if the country strikes an agreement with China. Furthermore, reports stated that the US military sent warships to the Middle East amid escalating tensions with Iran. Crypto investors recall how prices behave during US government shutdowns. Bitcoin’s price sharply declined amid last year’s US government shutdown Regarding the last US government shutdown, sources noted that the federal government was closed from October 1 to November 12 last year. This shutdown resulted from the Congress’s decision to delay the approval of funding for the 2026 fiscal year. As a result of the record 43-day shutdown, Bitcoin’s price sharply declined from its all-time high record of $126,080 to $100,000. Meanwhile, it is worth noting that ongoing conflicts in Washington and the October 10 crypto market crash partly drove this decline. The key driver of this market crash was Trump’s tariff threats against China. If you're reading this, you’re already ahead. Stay there with our newsletter .
26 Jan 2026, 05:20
Ether treasury ETHZilla buys plane engines amid tokenization focus
ETHZilla acquired two aircraft engines for $12 million, just weeks after the company said it was renewing its focus on tokenizing real-world assets.
26 Jan 2026, 05:10
Bitcoin Undervalued: 71% of Institutional Investors Reveal Bullish Stance in Pivotal Coinbase Survey
BitcoinWorld Bitcoin Undervalued: 71% of Institutional Investors Reveal Bullish Stance in Pivotal Coinbase Survey In a significant development for digital asset markets, a comprehensive Coinbase survey reveals a powerful consensus: 71% of institutional investors now view Bitcoin as fundamentally undervalued. This data, emerging in the first quarter of 2025, provides a crucial snapshot of professional sentiment during a period of notable market recalibration. The findings suggest a deepening conviction among major financial players, potentially signaling a strategic accumulation phase ahead of anticipated macroeconomic shifts. This institutional perspective stands in contrast to some public narratives, offering a data-driven window into the strategies of capital allocators who are increasingly integrating cryptocurrency into their portfolios. Bitcoin Undervalued According to Institutional Majority Coinbase’s first-quarter cryptocurrency market report, released in March 2025, delivers a compelling narrative based on direct investor feedback. The exchange surveyed 75 institutional investors and 73 retail investors between early December 2024 and early January 2025. The core finding is stark: a 71% majority of institutional respondents believe Bitcoin’s current market price does not reflect its underlying value or long-term potential. Furthermore, this institutional bullishness slightly outpaces retail sentiment, where 60% of respondents shared the view that Bitcoin is undervalued. This divergence highlights a growing sophistication gap, as professional investors often employ more rigorous valuation frameworks and longer time horizons. The survey’s timing is particularly instructive. It was conducted following a period of consolidation after the 2024 halving event and amidst ongoing regulatory clarifications in major economies like the United States and the European Union. Consequently, this sentiment data reflects a measured, post-volatility assessment rather than speculative frenzy. Analysts often cite several factors that could contribute to an “undervalued” perception, including the maturation of Bitcoin’s network security, its evolving role as a digital store of value, and its increasing correlation-disconnect from traditional tech stocks. Deep Analysis of Investor Sentiment and Behavior Beyond simple valuation beliefs, the Coinbase report delves into probable investor behavior under stress, revealing even stronger conviction. A remarkable 80% of institutional respondents indicated they would either maintain their current Bitcoin holdings or actively purchase more if the cryptocurrency market experienced a further 10% decline. This statistic is critical for understanding market structure. It suggests a substantial layer of buy-side support exists, which could dampen future downside volatility. Such resilience points to a maturation in investor mindset, treating pullbacks as opportunities rather than reasons for panic. Regarding market cycle identification, the survey found a nuanced view among all participants. A combined 54% of respondents characterized the current environment as either an “accumulation phase” or a “bear market.” This terminology is significant. An accumulation phase implies smart money is building positions quietly, often preceding a major bullish move. The data can be broken down further for clarity: Institutional Resilience: 80% commitment to hold or buy on dips. Market Cycle View: Majority see accumulation/bear phase, not a bubble top. Retail Caution: Retail investors show slightly less conviction (60%) than institutions. Strategic Patience: Sentiment suggests a focus on long-term fundamentals over short-term price action. The Federal Reserve’s Pivotal Role in Crypto Valuation The Coinbase report explicitly connects cryptocurrency valuation to broader monetary policy, a key marker of its analytical depth. It suggests that if the Federal Reserve executes two benchmark interest rate cuts in 2025, the resulting monetary easing could create a highly favorable environment for risk assets, including Bitcoin. Historically, periods of low interest rates and expanding money supply have correlated with strong performance in alternative stores of value. This analysis moves beyond crypto-specific news, anchoring Bitcoin’s potential in the global macroeconomic landscape. This perspective is supported by historical precedent. For instance, the post-2020 period of expansive fiscal and monetary policy coincided with Bitcoin’s rise from approximately $10,000 to its all-time high. Investors now monitor Fed statements, inflation data, and employment figures as closely as any blockchain metric. The potential for rate cuts could weaken the U.S. dollar index (DXY), historically a bullish inverse indicator for Bitcoin’s dollar-denominated price. Therefore, the survey captures a moment where traditional finance and digital asset theories are converging. Contextualizing the Survey in the 2025 Landscape To fully appreciate these findings, one must consider the unique financial landscape of early 2025. Several concurrent developments provide essential context. First, Bitcoin Exchange-Traded Funds (ETFs) approved in 2024 have now seen full quarters of trading, providing institutions with regulated, familiar vehicles for exposure. Second, major custodial and prime brokerage services for digital assets have become more robust, reducing operational friction for large investors. Third, geopolitical tensions and concerns about sovereign debt levels have renewed interest in non-sovereign, decentralized assets. Furthermore, Bitcoin’s network fundamentals remain strong. The hash rate, a measure of computational security, continues to hover near all-time highs. Adoption metrics, such as the number of active addresses and settlement volume, show steady growth. When institutional investors cite “undervalued,” they are likely synthesizing these on-chain fundamentals with macro-financial models. Their stance is not based on sentiment alone but on a growing body of data treating Bitcoin as a unique asset class with distinct drivers. Evidence and Expert Perspectives on Valuation Models While the survey reports sentiment, the underlying belief in undervaluation often stems from specific models. Experts frequently reference several frameworks. The Stock-to-Flow model, which assesses scarcity based on new supply issuance, is one historical benchmark, though its predictive power is debated. Network Value-to-Transactions (NVT) ratios, similar to PE ratios in equities, compare market cap to on-chain transaction volume. Currently, many of these metrics sit at levels historically associated with value rather than over-extension. Additionally, the growing practice of comparing Bitcoin’s market capitalization to the market cap of gold as a store of value provides a long-term narrative. If Bitcoin captures even a single-digit percentage of gold’s multi-trillion dollar valuation, its price would multiply significantly. Institutional investors, particularly those from hedge funds and family offices, are increasingly employing these comparative analyses, which may explain the strong undervaluation sentiment captured by Coinbase. Conclusion The Coinbase survey provides powerful, quantifiable evidence that a dominant majority of institutional investors perceive Bitcoin as undervalued in the current market. This sentiment, coupled with a declared intention to buy during downturns, paints a picture of strategic accumulation and deepening conviction. The linkage of this outlook to anticipated Federal Reserve policy underscores how intertwined cryptocurrency markets have become with traditional macroeconomics. For market observers, this data is a critical gauge of professional sentiment, suggesting that behind the scenes, sophisticated capital is positioning for what it believes is Bitcoin’s next significant chapter. The belief that Bitcoin is undervalued is now a mainstream institutional view, a profound shift from the skepticism of just a few years ago. FAQs Q1: What percentage of retail investors think Bitcoin is undervalued? According to the same Coinbase survey, 60% of retail investors share the view that Bitcoin is currently undervalued, which is slightly lower than the 71% of institutional investors. Q2: How might Federal Reserve interest rate cuts affect Bitcoin? The report suggests that rate cuts typically lead to monetary easing, which can weaken the dollar and create a favorable environment for risk-on assets like Bitcoin, as investors seek higher returns and inflation hedges. Q3: What did the survey say investors would do if the market fell 10%? A significant 80% of institutional respondents stated they would either maintain their current Bitcoin holdings or purchase more if the crypto market experienced a further 10% decline, indicating strong underlying demand. Q4: How many investors were surveyed in the Coinbase report? The survey polled a total of 148 investors, comprising 75 institutional investors and 73 retail investors, between early December 2024 and early January 2025. Q5: What phase do most investors believe the market is currently in? Fifty-four percent of all survey respondents identified the current market cycle as either an “accumulation phase” or a “bear market,” suggesting a prevalent view that prices are in a period of consolidation or value-building. This post Bitcoin Undervalued: 71% of Institutional Investors Reveal Bullish Stance in Pivotal Coinbase Survey first appeared on BitcoinWorld .
26 Jan 2026, 04:55
Bitcoin Plummets as US Government Shutdown Fears Intensify Market Uncertainty
BitcoinWorld Bitcoin Plummets as US Government Shutdown Fears Intensify Market Uncertainty NEW YORK, October 2025 – Bitcoin experienced a significant price decline this week, dropping 1.25% to $87,781 as fears of an impending U.S. federal government shutdown rattled global financial markets. This downturn highlights the cryptocurrency’s growing sensitivity to traditional macroeconomic and political pressures, marking a pivotal moment for digital asset investors. Bitcoin Price Reacts to Political Turmoil The recent Bitcoin price movement directly correlates with escalating tensions in Washington D.C. According to market analysts, the digital asset’s decline stems from broader risk aversion rather than cryptocurrency-specific issues. Rick Maeda of Presto Research emphasized this connection, stating that political uncertainty now drives market sentiment more than technological developments. Market data reveals several key patterns during this period: Correlation spikes between Bitcoin and traditional risk assets Increased volatility during congressional negotiation periods Liquidity shifts from speculative assets to safe havens Bitcoin Performance During Political Crises Event Date BTC Price Change Recovery Time Debt Ceiling 2023 May 2023 -8.2% 11 days Budget Impasse 2024 September 2024 -5.7% 7 days Current Shutdown Threat October 2025 -4.3% (to date) Ongoing Understanding the Government Shutdown Mechanism The United States faces a potential government shutdown when Congress fails to pass appropriations legislation. This political deadlock triggers the furlough of non-essential federal employees and suspends various government services. Consequently, financial markets typically react negatively to this uncertainty. Historical data shows that during previous shutdowns, risk assets generally underperformed. For instance, the 2018-2019 shutdown coincided with a 15% decline in the S&P 500. Currently, prediction markets like Polymarket indicate a 75% probability of shutdown occurrence, according to Vincent Liu, chief investment officer at Kronos Research. Expert Analysis of Market Reactions Financial experts observe distinct patterns in cryptocurrency behavior during political crises. Initially, Bitcoin often moves independently from traditional markets. However, as crises intensify, correlation coefficients increase significantly. This pattern suggests that during severe political uncertainty, investors treat Bitcoin similarly to other risk assets. Market analysts identify three primary transmission channels for political risk: Liquidity effects from institutional portfolio rebalancing Sentiment shifts among retail investors Regulatory uncertainty affecting long-term positioning Cryptocurrency Market Dynamics Under Pressure The broader cryptocurrency market shows similar stress patterns to Bitcoin. Altcoins typically experience amplified volatility during political crises, with many declining 2-3 times more than Bitcoin’s percentage drop. This phenomenon occurs because investors perceive Bitcoin as a relative safe haven within the crypto ecosystem. Market structure analysis reveals important insights. Exchange data indicates increased selling pressure during Washington negotiation periods. Meanwhile, derivatives markets show rising put option volumes, suggesting investors hedge against further declines. These market mechanics demonstrate how political events now significantly influence cryptocurrency trading strategies. Historical Context and Comparative Analysis Comparing current events to historical precedents provides valuable perspective. The 2013 government shutdown occurred before Bitcoin’s mainstream adoption, limiting direct comparison. However, the 2018-2019 shutdown offers more relevant data, showing Bitcoin declining approximately 12% during the 35-day period. Several factors differentiate the current situation: Increased institutional participation in cryptocurrency markets Higher correlation with traditional financial indicators Greater regulatory scrutiny of digital assets Enhanced market surveillance and reporting requirements Global Market Implications and Spillover Effects U.S. political instability affects global cryptocurrency markets through multiple channels. International investors often reduce exposure to dollar-denominated assets during American political crises. Additionally, cryptocurrency mining operations face uncertainty regarding energy policies and regulatory frameworks. Asian and European markets show varied responses to U.S. political developments. Typically, Asian trading sessions exhibit more volatility during U.S. political crises, while European markets demonstrate greater stability. This geographical variation creates arbitrage opportunities but also increases systemic risk across global cryptocurrency exchanges. Conclusion The Bitcoin price decline amid U.S. government shutdown fears demonstrates cryptocurrency’s maturation as a financial asset class. Political uncertainty now significantly influences market movements, reflecting Bitcoin’s integration into global financial systems. As markets continue evolving, understanding these macroeconomic relationships becomes increasingly crucial for investors navigating volatile conditions. FAQs Q1: How does a US government shutdown specifically affect Bitcoin? Government shutdowns create macroeconomic uncertainty that typically reduces investor appetite for risk assets like Bitcoin. The mechanism involves portfolio rebalancing, liquidity concerns, and broader financial market contagion effects. Q2: What historical evidence shows Bitcoin’s reaction to political crises? Historical data indicates Bitcoin often declines during significant political uncertainty. During the 2018-2019 shutdown, Bitcoin dropped approximately 12%, though market structure and participation levels have evolved significantly since then. Q3: Do other cryptocurrencies react similarly to Bitcoin during political turmoil? Most cryptocurrencies show correlation with Bitcoin during crises, though altcoins typically experience greater volatility. Bitcoin often serves as a relative safe haven within the cryptocurrency ecosystem during turbulent periods. Q4: How long do Bitcoin prices typically take to recover after political crises? Recovery times vary based on crisis severity and market conditions. Historical data suggests recovery periods ranging from one to three weeks, though each situation presents unique characteristics and timelines. Q5: Should investors consider Bitcoin a safe haven during political instability? While Bitcoin sometimes demonstrates resilience, it generally behaves as a risk asset during acute political crises. Investors should consider their risk tolerance and portfolio diversification strategies rather than assuming Bitcoin will always serve as a safe haven. This post Bitcoin Plummets as US Government Shutdown Fears Intensify Market Uncertainty first appeared on BitcoinWorld .
