Bitcoin and Ethereum Drop as US CPI Steady, 1000SATS Leads Gains

I. Crypto Market Overview

Key Takeaways

Macro Environment

US December CPI remains steady at 2.7%, keeping the Fed cautious and limiting rate cut expectations. Nigeria enacts strict crypto tax rules, aligning with OECD standards and raising compliance costs. The US Senate delays the CLARITY Act, prolonging regulatory uncertainty for digital assets and stablecoins.

Crypto Market

The crypto market saw broad declines over the past 24 hours, with Bitcoin down 4.43% to $97,474 and Ethereum dropping 9.27% to $3,144.86, pressured by weak risk sentiment and ETF outflows. 1000SATS surged 21.74% on Ordinals and meme coin rotation, zkPass rose 12.11% on privacy demand, and GameStop gained 8.26% amid meme sector momentum.

Today's Outlook

Today, the Euro area long-term interest rates and US December PPI data will be released, providing key macroeconomic signals. These releases may influence global risk appetite and drive volatility across both traditional and crypto markets.

Fear and Greed Index

0.00% Annual Percentile

41 Neutral

Total Crypto Market Cap

$3.25T

4.47%

Total Market Trading Volume

$140.81B

34.32%

Altcoin Season Index

54.55%

Quarterly Percentile

30 / 100

Total Futures Market Open Interest

3.24B

4.13%

Futures

604.00B

9.23%

Perpetuals

II. Industry Updates

Macro-economic Policies

The US December CPI was released today, showing a steady 2.7% YoY inflation rate, which keeps the Federal Reserve on a cautious path and limits expectations for imminent rate cuts, impacting Bitcoin and DeFi market sentiment.

A criminal probe into the Federal Reserve by the US Department of Justice has escalated political pressure on Chair Powell, raising concerns over central bank independence and increasing volatility in crypto and traditional markets.

Global central banks, including the ECB and Bank of England, issued a rare joint statement supporting Fed Chair Powell, emphasizing the importance of central bank independence for global financial stability and indirectly supporting risk assets like BTC.

The Japanese yen remains weak as markets anticipate US CPI data and face uncertainty over Bank of Japan policy, driving capital flows into USD and crypto assets as alternative hedges.

JPMorgan has warned that interest-bearing stablecoins could threaten banking sector stability, prompting lawmakers to consider restrictions on stablecoin rewards, which may affect DeFi liquidity and stablecoin adoption.

Cryptocurrency Regulatory Trends

Nigeria has enacted strict crypto tax regulations effective January 1, 2026, requiring all transactions to be linked to Tax Identification Numbers (TINs) and National Identification Numbers (NINs). This move aligns with OECD's CARF standards and is expected to increase compliance costs and market transparency.

The U.S. Senate has delayed the markup of the Digital Asset Market Structure CLARITY Act to late January due to lack of bipartisan support. The bill aims to clarify SEC and CFTC oversight, regulate stablecoins, and set federal rules for exchanges, impacting institutional participation and market structure.

India has updated its crypto regulations, mandating service providers to collect geolocation data and selfies from customers to combat fraud and money laundering. These enhanced KYC requirements may increase compliance burdens and affect user onboarding.

JPMorgan has warned that interest-bearing stablecoins could threaten banking stability by creating unregulated deposit-like products. U.S. lawmakers are considering prohibiting stablecoin rewards to mitigate systemic risks, which could impact stablecoin adoption and user incentives.

France's financial regulator has raised concerns as nearly one-third of registered crypto firms have not communicated their MiCA licensing plans ahead of the EU deadline. Non-compliance may force some firms to wind down, potentially reducing market diversity and investor options in the region.

1000SATS (1000SATS): 24h price surged 21.74%, leading the market. No specific event or news found in the last 24 hours, but strong Ordinals ecosystem activity and meme coin rotation likely contributed to the spike.

zkPass (ZKP): 24h price increased 12.11%. The ongoing live presale auction and rising demand for privacy infrastructure are driving token appreciation, with early participants seeing fast price discovery.

GameStop (GME): 24h price rose 8.26%. No direct event found in the last 24 hours, but meme coin sector momentum and renewed retail trader interest are supporting the uptrend.

Smart Money Movements

Bank of America advised clients to allocate up to 4% of portfolios to Bitcoin and CRYPTO, highlighting digital assets' growing role in traditional finance.

A whale sold 264.8 WBTC for $25 million at a $5.15 million loss, while retaining $13.49 million in gold-backed tokens with a $1.07 million floating profit.

Bitmine staked an additional 92,160 ETH worth $293 million, bringing its total staked Ethereum to 1,436,384 ETH valued at $4.77 billion.

A significant transfer of 28,320 ETH, valued at $94.39 million, was made from an unknown wallet to the Beacon Depositor, indicating large-scale staking activity.

XRP recorded a 428% surge in institutional inflows last week, attracting $45.8 million despite $454 million in outflows from the broader crypto market.

Events to Watch

Jan 14 (Wed)

Euro area long-term interest rates data and US December PPI will be released, offering key macroeconomic signals for global markets.

Jan 15 (Thu)

ECB to release securities issues statistics; Senate Banking Committee to discuss new stablecoin rewards legislation; Owlto Finance (OWL) and Football Fun (FUN) token generation events.

Jan 17 (Sat)

ONDO will unlock 1.9B tokens ($774M, ~61% supply); deBridge (DBR) unlocks 618M tokens ($11.6M), both potentially impacting market liquidity.

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