Crypto Market Slides as US-EU Trade Tensions and Plume Token Unlock Drive Volatility

I. Crypto Market Overview

Key Takeaways

Macro Environment

US 10-year Treasury yields surged above 4.25% amid US-EU trade tensions, increasing risk premiums and crypto volatility. The People's Bank of China maintained benchmark rates for the eighth month, signaling monetary stability in Asia. The CFTC's regulatory push and new stablecoin launches highlight a trend toward stricter compliance and institutionalization in crypto.

Crypto Market

The crypto market declined sharply over the past 12 hours, with Bitcoin down 4.1% to $88,853 and Ethereum falling 7.2% to $2,959, driven by risk-off sentiment from US-EU trade tensions. Most altcoins also dropped, except Canton Network (CC) which surged 11.5%, while Mantis (M) plunged 26.1% and MYX Finance (MYX) slipped 0.7%. Volatility was amplified by macro uncertainty and token unlocks.

Today's Outlook

Key events today include the US PCE Index release for November, token generation events for Summer fi (SUMR) and ETHGAS (GWEI), and a major unlock of 1.37 billion PLUME (PLUME) tokens, all of which may drive market volatility.

Fear and Greed Index

0.00% Annual Percentile

42 Neutral

Total Crypto Market Cap

$3.00T

4.15%

Total Market Trading Volume

$143.97B

45.10%

Altcoin Season Index

18.18%

Quarterly Percentile

27 / 100

Total Futures Market Open Interest

3.64B

1.19%

Futures

679.48B

7.31%

Perpetuals

II. Industry Updates

Macro-economic Policies

India's central bank has proposed linking BRICS nations' digital currencies to streamline cross-border payments and reduce US dollar reliance, potentially boosting crypto adoption and DeFi flows in emerging markets.

US 10-year Treasury yields surged above 4.25% amid heightened trade tensions with Europe, increasing risk premiums and causing volatility in crypto markets as investors reassess capital flows and inflation expectations.

The People's Bank of China maintained its benchmark lending rates for the eighth consecutive month, signaling cautious monetary stability that supports yuan-denominated stablecoin and tokenized asset flows in Asia.

India and China are accelerating gold purchases while reducing US Treasury holdings, reflecting a global shift in reserve management that may drive increased demand for crypto as an alternative store of value.

The Federal Reserve is widely expected to hold rates steady at the upcoming January FOMC meeting, maintaining a stable macro backdrop that supports risk asset liquidity, including Bitcoin and DeFi markets.

Cryptocurrency Regulatory Trends

The CFTC has appointed Michael Passalacqua, an experienced crypto lawyer, as senior advisor, signaling a stronger regulatory push and likely increased oversight for digital assets in the U.S. market.

Citrea has launched CTUSD, a stablecoin fully backed by short-term U.S. Treasuries and cash, aligning with the upcoming GENIUS Act regulatory framework, which may boost institutional confidence in compliant stablecoin products.

The CFTC's new "Future-Proof" initiative, led by Chairman Mike Selig, aims to modernize digital asset regulation by shifting from enforcement actions to formal rulemaking, potentially providing greater clarity and stability for crypto market participants.

Coinbase CEO Brian Armstrong remains optimistic about the passage of comprehensive U.S. crypto legislation, despite recent opposition to draft bills, highlighting ongoing efforts to establish clear regulatory frameworks and their importance for market growth.

Citrea's ctUSD stablecoin launch and the CFTC's regulatory appointments reflect a trend toward stricter compliance and institutionalization in the crypto sector, likely impacting liquidity and investor trust in the near term.

Canton Network (CC): Canton Network surged 11.5% in 24h, reaching $0.1308 with $27.2M trading volume, driven by a 13% breakout and strong network activity across major exchanges.

MemeCore (M): MemeCore rose 4.8% in 24h to $1.66, with $13.7M volume and a $2.09B market cap, fueled by increased meme coin ecosystem engagement and new listings.

MYX Finance (MYX): MYX Finance climbed 4.6% in 24h to $5.31, supported by $13.9M trading volume and growing DeFi adoption, ranking among top gainers for the day.

Smart Money Movements

Strategy (formerly MicroStrategy) acquired 22,305 BTC for $2.13 billion at an average price of $95,284 per Bitcoin, increasing total holdings to 709,715 BTC as of January 19, 2026.

A whale wallet acquired 20,000 ETH worth $60 million from WinterMute and FalconX, raising its total Ethereum holdings to 50,094 ETH valued at approximately $147.14 million.

GameStop-linked wallet transferred 2,396 BTC, about 50% of its holdings, to Coinbase Prime, realizing an estimated $70 million unrealized loss based on original acquisition prices.

Vanguard Group’s Mid-Cap Index Fund purchased 2.91 million shares of Strategy stock, valued at $505 million, marking its first significant investment in the company’s equity.

Trend Research acquired 9,939 ETH valued at $30.85 million from Binance and deposited the assets into Aave V3, while borrowing $20 million USDT for further Ethereum purchases.

Events to Watch

Jan 21 (Wed)

US PCE Index for November 2025 releases at 10:00 am; Summer fi (SUMR) and ETHGAS (GWEI) hold token generation events; Plume unlocks 1.37B tokens.

Jan 22 (Thu)

US personal income and PCE inflation data, Q3 GDP update, and unemployment claims release; Bank of Japan announces interest rate decision; Eurozone PMI and Germany PPI data publish.

Jan 22 (Thu)

Optimism (OP) governance votes on token buyback proposal allocating 50% of sequencer fees; River unlocks 1.5M RIVER tokens ($39.83M); Sentient (SENT) launches Alpha and DEX trading.

Table of Contents

I. Crypto Market Overview

Key Takeaways

Macro Environment

Crypto Market

Today's Outlook

II. Industry Updates

Macro-economic Policies

India's central bank has proposed linking BRICS nations' digital currencies to streamline cross-border payments and reduce US dollar reliance, potentially boosting crypto adoption and DeFi flows in emerging markets.

US 10-year Treasury yields surged above 4.25% amid heightened trade tensions with Europe, increasing risk premiums and causing volatility in crypto markets as investors reassess capital flows and inflation expectations.

The People's Bank of China maintained its benchmark lending rates for the eighth consecutive month, signaling cautious monetary stability that supports yuan-denominated stablecoin and tokenized asset flows in Asia.

India and China are accelerating gold purchases while reducing US Treasury holdings, reflecting a global shift in reserve management that may drive increased demand for crypto as an alternative store of value.

The Federal Reserve is widely expected to hold rates steady at the upcoming January FOMC meeting, maintaining a stable macro backdrop that supports risk asset liquidity, including Bitcoin and DeFi markets.

Cryptocurrency Regulatory Trends

The CFTC has appointed Michael Passalacqua, an experienced crypto lawyer, as senior advisor, signaling a stronger regulatory push and likely increased oversight for digital assets in the U.S. market.

Citrea has launched CTUSD, a stablecoin fully backed by short-term U.S. Treasuries and cash, aligning with the upcoming GENIUS Act regulatory framework, which may boost institutional confidence in compliant stablecoin products.

The CFTC's new "Future-Proof" initiative, led by Chairman Mike Selig, aims to modernize digital asset regulation by shifting from enforcement actions to formal rulemaking, potentially providing greater clarity and stability for crypto market participants.

Coinbase CEO Brian Armstrong remains optimistic about the passage of comprehensive U.S. crypto legislation, despite recent opposition to draft bills, highlighting ongoing efforts to establish clear regulatory frameworks and their importance for market growth.

Citrea's ctUSD stablecoin launch and the CFTC's regulatory appointments reflect a trend toward stricter compliance and institutionalization in the crypto sector, likely impacting liquidity and investor trust in the near term.

Trending Tokens

Canton Network (CC): Canton Network surged 11.5% in 24h, reaching $0.1308 with $27.2M trading volume, driven by a 13% breakout and strong network activity across major exchanges.

MemeCore (M): MemeCore rose 4.8% in 24h to $1.66, with $13.7M volume and a $2.09B market cap, fueled by increased meme coin ecosystem engagement and new listings.

MYX Finance (MYX): MYX Finance climbed 4.6% in 24h to $5.31, supported by $13.9M trading volume and growing DeFi adoption, ranking among top gainers for the day.

Smart Money Movements

Strategy (formerly MicroStrategy) acquired 22,305 BTC for $2.13 billion at an average price of $95,284 per Bitcoin, increasing total holdings to 709,715 BTC as of January 19, 2026.

A whale wallet acquired 20,000 ETH worth $60 million from WinterMute and FalconX, raising its total Ethereum holdings to 50,094 ETH valued at approximately $147.14 million.

GameStop-linked wallet transferred 2,396 BTC, about 50% of its holdings, to Coinbase Prime, realizing an estimated $70 million unrealized loss based on original acquisition prices.

Vanguard Group’s Mid-Cap Index Fund purchased 2.91 million shares of Strategy stock, valued at $505 million, marking its first significant investment in the company’s equity.

Trend Research acquired 9,939 ETH valued at $30.85 million from Binance and deposited the assets into Aave V3, while borrowing $20 million USDT for further Ethereum purchases.

Events to Watch

Jan 21 (Wed)

Jan 22 (Thu)

Jan 22 (Thu)

III. Phemex Market Focus

New Listings

Phemex Promotions