Crypto Market Dips as BTC, ETH Slide; WLFI, LIT, XTZ Outperform on News

I. Crypto Market Overview

Key Takeaways

Macro Environment

Global inflation remains mixed, with UK and South Africa CPI data showing slight upticks but overall stability. The ECB warns of potential inflation from US-EU tariffs, while regulatory clarity advances in the US and EU, supporting institutional crypto adoption. Blockchain's role in boosting global GDP is increasingly recognized.

Crypto Market

The crypto market is broadly lower over the past 12 hours, with BTC down 1.44% to $89,537 and ETH falling 3.09% to $2,970.96, pressured by weak spot demand and risk-off sentiment. Altcoins are mixed; WLFI (+7.58%), LIT (+7.16%), and XTZ (+3.80%) outperform on ecosystem news and strategic partnerships, while most sectors see declines.

Today's Outlook

Key events today include several token unlocks, notably for DIGI, FJO, and SCR, which may impact liquidity and volatility. Regulatory developments in South Korea and the EU, plus ongoing macro data releases, could further influence market sentiment and sector rotation.

Fear and Greed Index

0.00% Annual Percentile

42 Neutral

Total Crypto Market Cap

$2.99T

2.30%

Total Market Trading Volume

$135.41B

29.97%

Altcoin Season Index

18.18%

Quarterly Percentile

27 / 100

Total Futures Market Open Interest

3.64B

1.10%

Futures

658.11B

3.94%

Perpetuals

II. Industry Updates

Macro-economic Policies

UK December CPI rose to 3.4%, surpassing expectations and driven by higher tobacco, transport, and food prices; this uptick may delay Bank of England rate cuts, potentially sustaining GBP strength and impacting crypto-GBP trading pairs.

President Trump declared inflation defeated, signaling confidence in US economic stability; this could boost risk appetite and support Bitcoin and DEFI inflows as investors seek higher returns amid perceived macro stability.

The average South African CPI for 2025 was 3.2%, the lowest since 2004, but December saw a slight uptick to 3.6%; stable inflation supports ZAR-denominated stablecoins and may encourage DeFi activity in emerging markets.

ECB President Lagarde warned that new US-EU tariffs could be inflationary in the near term, with minimal immediate impact; ongoing trade tensions may increase volatility in EUR and USD, affecting crypto market liquidity and cross-border flows.

Citizens Bank highlighted blockchain's potential to accelerate global GDP by reducing payment friction, supporting the narrative for tokenization and on-chain settlement, which could drive institutional adoption and increase DeFi and NFT market activity.

Cryptocurrency Regulatory Trends

Vietnam has launched a pilot licensing program for crypto trading platforms, requiring strict local compliance and high capital, signaling increased regulatory oversight and likely boosting investor confidence.

South Korea has proposed legislation making crypto exchanges financially liable for hacking damages, shifting the burden of proof to exchanges and potentially raising operational costs but enhancing user protection.

Cronos Labs advanced MiCA-compliant documentation for its CRO token, aligning with new EU standards and supporting greater regulatory clarity for crypto assets across European markets.

The US is moving toward a dual regulatory framework, with the SEC overseeing digital securities and the CFTC regulating digital commodities, which could provide clearer compliance pathways for crypto projects.

The Italian central bank reiterated a cautious stance on stablecoins, emphasizing strict regulatory standards and reserve requirements, which may limit stablecoin integration in the EU financial system.

World Liberty Financial (WLFI): WLFI surged 7.6% in 24h, driven by treasury spending plans of $120M to stimulate $1 adoption and increased community engagement, with 8,650 holders and active Solana ecosystem trading.

Lighter (LIT): LIT rose 7.2% in 24h, supported by a 124% jump in trading volume to $126M and a live trading competition on KuCoin, attracting traders with a $20,000 prize pool and zero-fee incentives.

Tezos (XTZ): XTZ gained 3.8% in 24h, fueled by a $3.25M strategic partnership with TenX to enhance network security and DeFi innovation, plus 19 successful protocol upgrades and rising institutional staking.

Smart Money Movements

A Bitcoin whale purchased 450 BTC daily via Bitfinex, matching global mining output and absorbing $40.5M in daily supply as BTC traded near $90,000.

BlackRock deposited 635.16 BTC ($56.64M) and 30,827.68 ETH ($91.45M) into Coinbase, signaling continued large-scale institutional engagement in crypto.

A trader known as 0xD83 turned $3M USDC into $22.5M in six days, expanding short positions across ETH, BTC, HYPE, PEPE, and XMR, with total positions valued at $332M.

Ethereum whale 0x8E27 transferred 14,183 ETH worth $42M to Coinbase, moving their entire ETH holdings and sparking speculation about potential market activity.

A whale address 'pension-usdt.eth' reduced its BTC long position to 751.87 BTC (5x leverage) and opened a 10,065 ETH short (3x leverage), shifting strategy amid volatility.

Events to Watch

Jan 22 (Thu)

US Q4 Real Personal Consumption Expenditures, GDP, and PCE inflation data to be released; Bank of Japan announces interest rate decision; Eurozone PMI and Germany PPI data published.

Jan 22 (Thu)

Sentient launches Alpha and DEX trading in AI Infrastructure; Fight ID conducts airdrop in Entertainment/Travel Gaming NFT sector; Governance vote on 12-month buybacks scheduled.

Jan 23 (Fri)

Valereum Plc to admit and commence trading of 230,883,001 Further Subscription Shares on Aquis Growth Market; US Personal Income and Outlays report, including PCE inflation data, to be released.

Table of Contents

I. Crypto Market Overview

Key Takeaways

Macro Environment

Crypto Market

Today's Outlook

II. Industry Updates

Macro-economic Policies

UK December CPI rose to 3.4%, surpassing expectations and driven by higher tobacco, transport, and food prices; this uptick may delay Bank of England rate cuts, potentially sustaining GBP strength and impacting crypto-GBP trading pairs.

President Trump declared inflation defeated, signaling confidence in US economic stability; this could boost risk appetite and support Bitcoin and DEFI inflows as investors seek higher returns amid perceived macro stability.

The average South African CPI for 2025 was 3.2%, the lowest since 2004, but December saw a slight uptick to 3.6%; stable inflation supports ZAR-denominated stablecoins and may encourage DeFi activity in emerging markets.

ECB President Lagarde warned that new US-EU tariffs could be inflationary in the near term, with minimal immediate impact; ongoing trade tensions may increase volatility in EUR and USD, affecting crypto market liquidity and cross-border flows.

Citizens Bank highlighted blockchain's potential to accelerate global GDP by reducing payment friction, supporting the narrative for tokenization and on-chain settlement, which could drive institutional adoption and increase DeFi and NFT market activity.

Cryptocurrency Regulatory Trends

Vietnam has launched a pilot licensing program for crypto trading platforms, requiring strict local compliance and high capital, signaling increased regulatory oversight and likely boosting investor confidence.

South Korea has proposed legislation making crypto exchanges financially liable for hacking damages, shifting the burden of proof to exchanges and potentially raising operational costs but enhancing user protection.

Cronos Labs advanced MiCA-compliant documentation for its CRO token, aligning with new EU standards and supporting greater regulatory clarity for crypto assets across European markets.

The US is moving toward a dual regulatory framework, with the SEC overseeing digital securities and the CFTC regulating digital commodities, which could provide clearer compliance pathways for crypto projects.

The Italian central bank reiterated a cautious stance on stablecoins, emphasizing strict regulatory standards and reserve requirements, which may limit stablecoin integration in the EU financial system.

Trending Tokens

World Liberty Financial (WLFI): WLFI surged 7.6% in 24h, driven by treasury spending plans of $120M to stimulate $1 adoption and increased community engagement, with 8,650 holders and active Solana ecosystem trading.

Lighter (LIT): LIT rose 7.2% in 24h, supported by a 124% jump in trading volume to $126M and a live trading competition on KuCoin, attracting traders with a $20,000 prize pool and zero-fee incentives.

Tezos (XTZ): XTZ gained 3.8% in 24h, fueled by a $3.25M strategic partnership with TenX to enhance network security and DeFi innovation, plus 19 successful protocol upgrades and rising institutional staking.

Smart Money Movements

A Bitcoin whale purchased 450 BTC daily via Bitfinex, matching global mining output and absorbing $40.5M in daily supply as BTC traded near $90,000.

BlackRock deposited 635.16 BTC ($56.64M) and 30,827.68 ETH ($91.45M) into Coinbase, signaling continued large-scale institutional engagement in crypto.

A trader known as 0xD83 turned $3M USDC into $22.5M in six days, expanding short positions across ETH, BTC, HYPE, PEPE, and XMR, with total positions valued at $332M.

Ethereum whale 0x8E27 transferred 14,183 ETH worth $42M to Coinbase, moving their entire ETH holdings and sparking speculation about potential market activity.

A whale address 'pension-usdt.eth' reduced its BTC long position to 751.87 BTC (5x leverage) and opened a 10,065 ETH short (3x leverage), shifting strategy amid volatility.

Events to Watch

Jan 22 (Thu)

Jan 22 (Thu)

Jan 23 (Fri)

III. Phemex Market Focus

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