Crypto Market Slides as US PPI Rises, BTC and ETH Lead Declines

I. Crypto Market Overview

Key Takeaways

Macro Environment

The US Producer Price Index rose 0.5% in December, signaling persistent inflation and likely delaying Fed rate cuts. President Trump nominated Kevin Warsh as Federal Reserve Chair, increasing policy uncertainty. Hong Kong and South Korea advanced digital asset regulations, boosting institutional confidence in Asia.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with BTC down 5.54% to $82,864 and ETH falling 6.40% to $2,730, driven by $1.7B in liquidations and risk-off sentiment. Most altcoins dropped, but PI Network (+2.46%), LayerZero (+2.14%), and DoubleZero (+0.85%) outperformed, supported by strong trading activity and investor interest.

Today's Outlook

Key events today include the release of US PPI and Core PPI data for December, German HICP and Q4 GDP figures, and President Trump's announcement of the new Federal Reserve Chair. These developments may drive volatility across global and crypto markets.

Fear and Greed Index

26.00% Annual Percentile

38 Neutral

Total Crypto Market Cap

$2.81T

5.51%

Total Market Trading Volume

$191.39B

77.52%

Altcoin Season Index

16.67%

Quarterly Percentile

28 / 100

Total Futures Market Open Interest

3.39B

8.86%

Futures

621.09B

2.69%

Perpetuals

II. Industry Updates

Macro-economic Policies

President Trump nominated Kevin Warsh as the new Federal Reserve Chair, signaling a potential shift toward more hawkish monetary policy, which could increase volatility in BTC and DeFi markets due to interest rate uncertainty.

The U.S. Producer Price Index (PPI) for December 2025 rose 0.5%, driven by service prices, indicating persistent inflationary pressures that may delay Fed rate cuts and impact crypto market liquidity and risk appetite.

CME FedWatch data shows a 48% probability of a 25-basis-point Fed rate cut by June, reflecting market expectations for monetary easing that could support BTC price recovery and DeFi lending activity.

Eurozone Q4 2025 GDP expanded by 0.3% QoQ, surpassing expectations, which may strengthen the euro and reduce demand for USD-pegged stablecoins, potentially affecting cross-border crypto flows.

India will release its first CPI data based on the new 2024 base year on February 12, with expected marginal increases in headline inflation, which could influence INR-denominated crypto trading and local DeFi adoption.

Cryptocurrency Regulatory Trends

Australia will overhaul its digital currency exchange regulations by March 2026, shifting to a pre-approval regime and expanding oversight to more virtual asset services, which may increase compliance costs and impact exchange operations.

Hong Kong has enacted a new Stablecoin Ordinance and is processing licenses for fiat-backed stablecoin issuers, signaling stronger regulatory clarity and potentially boosting institutional confidence in the region's crypto sector.

The Hong Kong government plans to submit a comprehensive regulatory framework for virtual asset trading, custody, and advisory services to the Legislative Council this year, aiming to further integrate digital assets into the mainstream financial system.

The Australian Securities and Investments Commission (ASIC) has identified digital assets as a top regulatory risk for 2026, emphasizing stricter enforcement at the regulatory perimeter, which could limit unlicensed crypto activities and enhance consumer protection.

South Korea's KOFIA has launched a Digital Strategy Team to support member firms in developing security tokens and digital asset products, reflecting a maturing regulatory environment and encouraging traditional finance participation in Web3.

PI Network (PI): PI surged 2.2% in 24h to $0.166, ranking as a top gainer by volume and price. The rally is driven by strong trading activity, but no major new announcements or events were identified in the last 24 hours.

LayerZero (ZRO): ZRO rose 2.1% in 24h to $1.98, with $158M in trading volume and a $587M market cap. The price increase is attributed to sustained investor interest and high liquidity, with no specific protocol news or listings in the past day.

DoubleZero (2Z): 2Z climbed 1.7% in 24h to $0.123, supported by $33.9M in volume and a $426M market cap. The gain is linked to ongoing demand for decentralized infrastructure tokens, but no recent upgrades or partnerships were reported.

Smart Money Movements

BlackRock deposited 2,288 BTC ($188.99M) and 19,644 ETH ($53.72M) into Coinbase, signaling continued institutional engagement in crypto.

BitMine staked 2,582,963 ETH ($7.67B), representing 61% of its $12B ETH holdings, and now controls 3.52% of total ETH supply.

Bhutan's sovereign wealth fund transferred 100.82 BTC ($8.31M) to QCP Capital and holds 104,000 stETH ($284M) on Aave with a 1.15 loan health ratio.

A whale known as '0xFB7' acquired 20,000 ETH for $56.03M from FalconX, increasing total holdings to 110,154 ETH ($311.26M) in staking.

A major trader opened a 20x leveraged long position on 32.88 BTC at $82,519.6, currently facing a minor floating loss, highlighting high-risk smart money activity.

Events to Watch

Jan 30 (Fri)

US Producer Price Index (PPI) and Core PPI for December released; German HICP and GDP data for Q4; European Economic Area GDP growth rate published.

Jan 30 (Fri)

Donald Trump to announce new Federal Reserve Chair, with Kevin Warsh as nominee; decision may impact USD index and risk assets.

Jan 30 (Fri)

GMX DAO voting on two-year funding framework for GMX Labs ends; Conflux Network holds quarterly community call.

Feb 5 (Thu)

US Non-Farm Payrolls data for January to be released, providing key employment and economic health insights; Digital Assets Forum 2026 opens in London.

Table of Contents

I. Crypto Market Overview

Key Takeaways

Macro Environment

Crypto Market

Today's Outlook

II. Industry Updates

Macro-economic Policies

President Trump nominated Kevin Warsh as the new Federal Reserve Chair, signaling a potential shift toward more hawkish monetary policy, which could increase volatility in BTC and DeFi markets due to interest rate uncertainty.

The U.S. Producer Price Index (PPI) for December 2025 rose 0.5%, driven by service prices, indicating persistent inflationary pressures that may delay Fed rate cuts and impact crypto market liquidity and risk appetite.

CME FedWatch data shows a 48% probability of a 25-basis-point Fed rate cut by June, reflecting market expectations for monetary easing that could support BTC price recovery and DeFi lending activity.

Eurozone Q4 2025 GDP expanded by 0.3% QoQ, surpassing expectations, which may strengthen the euro and reduce demand for USD-pegged stablecoins, potentially affecting cross-border crypto flows.

India will release its first CPI data based on the new 2024 base year on February 12, with expected marginal increases in headline inflation, which could influence INR-denominated crypto trading and local DeFi adoption.

Cryptocurrency Regulatory Trends

Australia will overhaul its digital currency exchange regulations by March 2026, shifting to a pre-approval regime and expanding oversight to more virtual asset services, which may increase compliance costs and impact exchange operations.

Hong Kong has enacted a new Stablecoin Ordinance and is processing licenses for fiat-backed stablecoin issuers, signaling stronger regulatory clarity and potentially boosting institutional confidence in the region's crypto sector.

The Hong Kong government plans to submit a comprehensive regulatory framework for virtual asset trading, custody, and advisory services to the Legislative Council this year, aiming to further integrate digital assets into the mainstream financial system.

The Australian Securities and Investments Commission (ASIC) has identified digital assets as a top regulatory risk for 2026, emphasizing stricter enforcement at the regulatory perimeter, which could limit unlicensed crypto activities and enhance consumer protection.

South Korea's KOFIA has launched a Digital Strategy Team to support member firms in developing security tokens and digital asset products, reflecting a maturing regulatory environment and encouraging traditional finance participation in Web3.

Trending Tokens

PI Network (PI): PI surged 2.2% in 24h to $0.166, ranking as a top gainer by volume and price. The rally is driven by strong trading activity, but no major new announcements or events were identified in the last 24 hours.

LayerZero (ZRO): ZRO rose 2.1% in 24h to $1.98, with $158M in trading volume and a $587M market cap. The price increase is attributed to sustained investor interest and high liquidity, with no specific protocol news or listings in the past day.

DoubleZero (2Z): 2Z climbed 1.7% in 24h to $0.123, supported by $33.9M in volume and a $426M market cap. The gain is linked to ongoing demand for decentralized infrastructure tokens, but no recent upgrades or partnerships were reported.

Smart Money Movements

BlackRock deposited 2,288 BTC ($188.99M) and 19,644 ETH ($53.72M) into Coinbase, signaling continued institutional engagement in crypto.

BitMine staked 2,582,963 ETH ($7.67B), representing 61% of its $12B ETH holdings, and now controls 3.52% of total ETH supply.

Bhutan's sovereign wealth fund transferred 100.82 BTC ($8.31M) to QCP Capital and holds 104,000 stETH ($284M) on Aave with a 1.15 loan health ratio.

A whale known as '0xFB7' acquired 20,000 ETH for $56.03M from FalconX, increasing total holdings to 110,154 ETH ($311.26M) in staking.

A major trader opened a 20x leveraged long position on 32.88 BTC at $82,519.6, currently facing a minor floating loss, highlighting high-risk smart money activity.

Events to Watch

Jan 30 (Fri)

Jan 30 (Fri)

Feb 5 (Thu)

III. Phemex Market Focus

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