Bitcoin Slides Below $90K as ETF Outflows Persist; Kaia, MYX, HYPE Rally

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve is expected to keep rates steady, with markets watching for policy signals amid upcoming US inflation data. The SEC and CFTC will unveil a joint crypto regulatory framework, aiming to reduce compliance uncertainty and attract institutions. China's central bank plans further yuan internationalization, potentially impacting stablecoin reserves and crypto trading pairs.

Crypto Market

Bitcoin (BTC) fell 0.19% to $89,321, pressured by continued ETF outflows and weak risk sentiment. Ethereum (ETH) rose 0.61% to $2,950.77, outperforming BTC on strong DeFi activity. Most altcoins declined, but KAIA (KAIA) surged 38%, MYX Finance (MYX) gained 9.7%, and Hyperliquid (HYPE) rose 7.9%, driven by ecosystem news and whale accumulation. Meme and DeFi tokens led losses as risk-off flows dominated.

Today's Outlook

No major token unlocks or protocol launches are scheduled for today, but market focus remains on macroeconomic data releases and regulatory developments. Investors should monitor sentiment shifts ahead of the upcoming FOMC meeting and the SEC-CFTC joint crypto framework announcement.

Fear and Greed Index

14.00% Annual Percentile

34 Neutral

Total Crypto Market Cap

$3.02T

0.32%

Total Market Trading Volume

$88.58B

12.17%

Altcoin Season Index

16.67%

Quarterly Percentile

27 / 100

Total Futures Market Open Interest

3.61B

0.89%

Futures

585.93B

4.35%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Federal Reserve is expected to keep its benchmark interest rate unchanged at 3.75% in the upcoming FOMC meeting, with Chair Powell's press conference closely watched for signals on future monetary policy. Stable rates and cautious guidance may support Bitcoin and DeFi liquidity but could limit short-term volatility in crypto markets.

US economic indicators, including Initial Jobless Claims and December Producer Price Index (PPI), are scheduled for release this week. Strong labor or inflation data could influence Fed policy expectations, impacting BTC price direction and risk appetite across digital assets.

The Bank of Canada is anticipated to maintain its policy rate at 2.25% following stronger-than-expected retail sales and persistent inflation above target. A steady Canadian rate environment may sustain CAD-linked stablecoin demand and cross-border DeFi flows.

China's central bank announced plans to further internationalize the yuan in 2026, focusing on cross-border payment systems and financial market opening. Enhanced yuan liquidity and global settlement options could diversify stablecoin reserves and affect crypto trading pairs.

Nigeria's inflation rate rose to 15.15% in December 2025, increasing pressure on the naira and driving local demand for USD-pegged stablecoins and crypto as inflation hedges.

Cryptocurrency Regulatory Trends

The SEC has officially dismissed its civil enforcement action against Gemini Trust over the Earn program, citing full investor restitution. This resolution boosts market confidence but does not signal broader regulatory leniency.

The SEC and CFTC will unveil a joint cryptocurrency regulatory framework next week, aiming to harmonize rules and reduce compliance uncertainty. This move is expected to attract more institutional investment into the crypto sector.

The US CLARITY Act proposes a ban on stablecoin yields, which could drive capital offshore and weaken the US's position in the global digital asset market, impacting stablecoin adoption and liquidity.

The Netherlands is advancing a proposal to tax unrealized gains on crypto assets, raising concerns about potential capital flight and reduced competitiveness as a European crypto hub.

At Davos 2026, the US and Europe highlighted divergent crypto regulatory approaches, with the US supporting pro-crypto legislation and the ECB advocating for stricter controls and CBDCs, increasing regulatory uncertainty for global markets.

KAIA (KAIA): Surged 38% in 24h to $0.087, driven by the Finschia and Klaytn merger into Kaia and a new Web3 game launch, with trading volume up 259% to $146M.

MYX Finance (MYX): Rose 9.7% in 24h to $6.39, fueled by an 82% weekly surge from altcoin rotation, bullish pennant breakout, and DeFi perpetuals innovation, with $17M volume.

Hyperliquid (HYPE): Gained 7.9% in 24h to $23.27, as whale accumulation and ecosystem growth drove liquidity and price, with market cap and trading activity sharply increasing.

Smart Money Movements

UBS Group AG, managing $6.9 trillion in assets, launched Bitcoin and Ethereum trading for select Swiss private banking clients, marking a major institutional move into crypto.

A transfer of 2,873 BTC, valued at approximately $260 million, was made from an unknown wallet to Gemini exchange, signaling potential strategic shifts among major Bitcoin holders.

BlackRock's Ethereum ETF ($ETHA) recorded a net outflow of 15,112 ETH, equivalent to $44.58 million, on January 23, despite a daily trading volume of $0.7 billion.

The largest ZEC short seller realized $3.02 million in profit by reducing an ETH short position by 1,055.93 ETH, while still holding $118.7 million in ETH shorts.

A high-stakes trader deposited $1.82 million USDC into HyperLiquid, leveraging it to open $25.9 million in long positions across Bitcoin, Ethereum, and HYPE with up to 40x leverage.

Events to Watch

Jan 27 (Tue)

The Federal Reserve FOMC meeting begins; markets expect the federal funds rate to remain at 3.50%–3.75%.

Jan 28 (Wed)

FOMC will announce its interest rate decision; no policy change expected. Fed Chair Powell to hold a press briefing after the announcement.

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