Crypto Market Drops as BTC, ETH Slide; Supreme Court Tariff Ruling Looms

I. Crypto Market Overview

Key Takeaways

Macro Environment

Wells Fargo's launch of Bitcoin-backed loans signals deeper crypto integration into US banking. Indian CPI inflation data release on January 12 may impact global risk appetite and crypto volatility. The US Supreme Court's upcoming tariff decision could influence global trade flows and market sentiment.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with BTC down 4.43% to $97,474 and ETH falling 9.27% to $3,144, pressured by ETF outflows and weak risk sentiment. Altcoins also dropped, with MYX (-13.58%), FET (-12.59%), and ARB (-11.73%) among the worst performers, while CHZ bucked the trend, rising 7.28% on strong fan token activity.

Today's Outlook

Today, markets await the Mantle mainnet upgrade and the US Supreme Court's decision on Trump-era tariffs, both of which could drive volatility across global and crypto markets.

Fear and Greed Index

0.00% Annual Percentile

40 Neutral

Total Crypto Market Cap

$3.10T

0.32%

Total Market Trading Volume

$46.18B

39.33%

Altcoin Season Index

63.64%

Quarterly Percentile

34 / 100

Total Futures Market Open Interest

2.65B

16.07%

Futures

594.74B

10.73%

Perpetuals

II. Industry Updates

Macro-economic Policies

Wells Fargo has launched Bitcoin-backed loans for institutional clients, signaling deeper crypto integration into traditional finance and potentially boosting Bitcoin's utility and demand.

US community banks warn that yield-bearing stablecoins could drain deposits, potentially reducing lending to small businesses and impacting DeFi liquidity and stablecoin market dynamics.

Indian markets are bracing for the release of December CPI inflation data on January 12, a key macroeconomic indicator that could influence global risk appetite and crypto market volatility.

Bitcoin ETFs saw $681 million in outflows this week as investors await US inflation data, increasing short-term volatility and impacting Bitcoin price and overall crypto market sentiment.

The US Supreme Court is expected to rule on January 14 regarding Trump-era global tariffs, a decision that could affect global trade flows and indirectly influence crypto market risk appetite.

Cryptocurrency Regulatory Trends

India's Financial Intelligence Unit has introduced strict new KYC rules for crypto exchanges, requiring selfie verification, geolocation, and bank account checks to combat money laundering, likely increasing compliance costs and impacting user onboarding.

Colombia has implemented mandatory crypto reporting rules for exchanges, aligning with OECD standards to enhance tax transparency, which may increase regulatory scrutiny and affect cross-border crypto flows.

The U.S. Senate is set to vote on the CLARITY Act on January 15, targeting fake trading volume and wash trading in crypto markets, potentially boosting market transparency and investor confidence.

South Korea has granted authorities the power to seize Bitcoin held on exchanges, signaling a tightening regulatory stance that could deter illicit activity but also impact exchange operations and user trust.

Japan has declared 2026 as its 'Digital First Year,' advancing digital transformation policies including blockchain and crypto integration, which may foster innovation and attract institutional investment.

MYX Finance (MYX): MYX surged 11.8% in 24h, reaching $5.57 with $20.25M volume. The rally is driven by high on-chain trading activity and growing adoption of its cross-chain derivatives protocol.

Chiliz (CHZ): CHZ rose 7.4% in 24h to $0.0486, with $200M+ trading volume. The increase is linked to renewed interest in sports fan tokens and recent ecosystem engagement on Socios.com.

Story (STORY): STORY remained stable at $0.000013, showing no significant price change or news. Trading volume and market activity are low, with no major events reported in the last 24 hours.

Smart Money Movements

A Polygon-linked address deposited 20 million POL tokens, worth approximately $3.5 million, into Binance and GSR Markets within ten minutes on January 11, indicating significant liquidity movement.

Bitmine increased its Ethereum stake by 86,400 ETH, valued at $266.3 million, bringing its total staked ETH to 1,052,192 ETH ($3.25 billion), reinforcing its commitment to Ethereum's staking ecosystem.

A Satoshi era miner transferred 2,000 BTC for the first time since November 2024, with the last transfer occurring when Bitcoin was valued at approximately $91,000, signaling notable whale activity.

A blockchain address linked to Vitalik Buterin deposited 330 ETH, worth about $1.02 million, to Paxos, marking the second such deposit from this address since January 2025.

TRM Labs reported that Iran's IRGC moved approximately $1 billion via two UK crypto exchanges using USDT on Tron from 2023 to 2025, accounting for 56% of the exchanges' total volume.

Events to Watch

Jan 14 (Wed)

Mantle mainnet upgrade is scheduled; Supreme Court to decide on US tariffs, potentially impacting global markets.

Jan 15 (Thu)

US Senate Banking Committee will hold a markup session on the Digital Asset Market Clarity Act and CLARITY Act, focusing on DeFi and stablecoin regulation; Starknet unlocks 127M tokens (4.83% of supply).

Jan 20 (Tue)

LayerZero will unlock 25.71M ZRO tokens (6.36% of released supply), possibly affecting market liquidity.

Jan 21 (Wed)

PLUME will unlock 1.37B tokens (39.75% of circulating supply) for early investors and contributors, likely increasing sell pressure.

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