Quick Take

• Bitcoin supply held by long-term holders rose in January; Yuno partnered with Crypto.com on crypto payments; US Senate Agriculture Committee advanced crypto market structure bill after a party-line vote.
• US spot BTC ETFs had a net outflow of US$1.5 billion last week, higher than the net outflow of $1.3 billion the period before. Spot ETH ETFs saw a net outflow of $327 million in the same period, lower than the net outflow of $601 million the period before.
• On the macro side, the US Federal Reserve held rates steady as expected, citing elevated inflation. President Donald Trump will nominate former Fed Governor Kevin Warsh as the next Fed Chair. Producer price index increased by 0.5% in December, the highest increase in the last three months. The US government entered a partial shutdown over the weekend, pending a House of Representatives vote on Monday. The latest CME FedWatch Tool indicated a 3% probability of a March rate cut. Bank of Canada kept interest rates at 2.25%.
• Notable updates: Ethereum members are using some unclaimed funds from the 2016 DAO hack to establish a $220 million security fund; Tether launched the USAT stablecoin; Ripple launched Ripple Treasury; Optimism approved a proposal to link OP token more closely to the Superchain’s economic performance.
• Notable events in the coming week: US ISM Manufacturing & Services PMI, nonfarm payrolls, and interest rate decisions from Reserve Bank of Australia (RBA), European Central Bank (ECB), and Bank of England (BoE).

Research Dashboard

According to our research dashboard, the price index decreased by -12.87%, while volume and volatility indices increased by +50.12%, and +96.36%, respectively, last week.

Tokens in the index all decreased except for HYPE (+28.52%). This coincided with a surge in commodities trading activities on Hyperliquid. BTC and ETH decreased by -11.1% and -19.4%, respectively. BTC dropped from around $90,000 midweek to below $78,000 over the weekend. This coincided with President Trump weighing potential strikes on Iran, while also threatening to impose tariffs on countries selling oil to Cuba. In addition, a partial US government shutdown, a strengthening US dollar, the market assessing the Fed’s interest rate outlook, and a new Fed Chair nomination also weighed on the crypto markets last week.

The volatility increase was led by HYPE (+169.09%) and WLFI (+138.22%). 

Chart of the Week

Bitcoin supply held by long-term holders (more than 155 days) began to recover in January, reaching 14.4 million BTC on 31 January and increasing 1.8% month-on-month — despite the month’s price decline. This potentially suggests that long-term holders are taking advantage of the recent price drop to expand their BTC holdings.

Weekly Performance

Top-cap tokens all decreased in price last week. BTC and ETH decreased by -11.1% and -19.4%, respectively. SUI and OP led the decrease. This coincided with multiple news last week around rising geopolitical tensions, tariff threats from the US, the market assessing the Fed’s interest rate outlook, and a new Fed Chair nomination.

All key categories decreased in market capitalisation in the last seven days. Artificial Intelligence and Layer-2 led the increase.

News Highlights

Crypto.com / Cronos News

• Yuno, a global financial infrastructure platform, partnered with Crypto.com to promote Crypto.com Pay across Yuno’s 1,000+ payment method network. This will enable merchants to accept cryptocurrencies seamlessly and expand crypto payment acceptance globally.

Regulation

• US Senate Agriculture Committee advanced the crypto market structure bill after a party-line vote, though it still requires Democratic support in the full Senate. The White House also plans to meet with crypto and banking representatives to work on stablecoin reward concerns in the market structure bill.
• US Commodity Futures Trading Commission (CFTC) is joining efforts with the Securities and Exchange Commission (SEC) on Project Crypto, an initiative launched in 2025 to establish clarity on digital asset regulation. This aims to remove duplication on requirements and fragmentation on oversight.
• The US SEC clarified that tokenised stocks are regulated under traditional securities and derivatives rules. It also stated that only issuer-sponsored tokenised securities confer true equity ownership, while third-party tokenised stocks represent a custodial entitlement or synthetic exposure.
• Bank of England will focus on advancing frameworks for systematic stablecoins and tokenised collateral, as well as expanding the Digital Securities Sandbox in 2026. These aim to shape the UK’s digital financial future.
• The European Commission will send out notices to 12 European countries for failing to implement the crypto tax rules. The rules were intended to tackle tax frauds, tax evasion, and avoidance.
• Hong Kong’s financial regulators intend to submit a draft framework for digital assets in 2026. Additionally, the Hong Kong Monetary Authority (HKMA) began processing licence applications for stablecoin issuers.
• South Korea’s National Assembly approved an amendment to the country’s crypto licensing regime, tightening entry requirements for virtual asset service providers and shareholders, and broadening applicant background checks to include vets for major shareholders and additional red flags.

Adoption

• Fidelity has plans to enter the stablecoin market by launching a USD-pegged stablecoin, Fidelity Digital Dollar (FIDD) on the Ethereum network. The asset will be fully backed by USD and cash equivalents, and available to retail and institutional investors.
• WisdomTree is expanding its tokenised funds to Solana to support the growth of its on-chain offerings. This expansion will include all of its funds across money market, equities, fixed income, alternatives, and asset allocation.
• Laser Digital, a digital asset company backed by Nomura, is reportedly applying for a US national bank trust charter. Additionally, Brazil’s largest digital bank, Nu, received conditional approval from the US Office of the Comptroller of the Currency (OCC) to establish Nubank as a national trust bank.
• Universal Digital, an Abu Dhabi-based company, launched USDU, the first USD-backed stablecoin registered with the UAE central bank as a Foreign Payment Token. This will provide a regulated USD settlement option for digital assets in the UAE.
• Kazakhstan allocated $350 million from its National Fund to support the formation of a national crypto reserve. The reserve will initially invest in crypto-focused hedge funds rather than buy crypto directly.. 

Investment Vehicles

• BlackRock filed with the SEC to launch the iShares Bitcoin Premium Income ETF. The fund will track BTC’s price, while selling options on IBIT shares and occasionally on indices that track spot BTC ETPs, to earn premium income.
• VanEck launched the first spot Avalanche ETF in the US. The fund, VAVX, will track the AVAX’s price and potentially generate staking returns.
• Bitwise registered a statutory trust in Delaware for a potential Uniswap ETF, following the SEC’s closure of its investigation on Uniswap Labs in February 2025.
• 21Shares launched the first Jito-staked Solana ETP in Europe on Euronext Amsterdam and Paris. The ETP will trade in USD and euros, and hold JitoSOL while earning staking rewards.

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