Crypto Market Slides: BTC, ETH, and Altcoins Face Broad Sell-Off Amid ETF Outflows

I. Crypto Market Overview

Key Takeaways

Macro Environment

The US Senate is advancing crypto market structure and stablecoin yield regulations, signaling a shift toward clearer oversight. The Federal Reserve is expected to keep rates unchanged, supporting risk appetite. Ripple's UK FCA registration highlights growing global regulatory compliance for major crypto firms.

Crypto Market

The crypto market saw broad declines over the past 24 hours, with BTC down 4.43% to $97,474 and ETH falling 9.27% to $3,144.86, pressured by ETF outflows and weak sentiment. Altcoins also dropped, with POL down 7.48%, JASMY down 9.25%, and PUMP down 8.03%. Meme and DeFi tokens led losses, driven by risk-off flows and sector rotation.

Today's Outlook

No major token unlocks or high-impact events are scheduled for today. Market participants remain focused on upcoming US CPI and PPI data, as well as regulatory developments, which may drive volatility in the coming days.

Fear and Greed Index

4.00% Annual Percentile

41 Neutral

Total Crypto Market Cap

$3.09T

0.87%

Total Market Trading Volume

$97.08B

13.23%

Altcoin Season Index

75.00%

Quarterly Percentile

37 / 100

Total Futures Market Open Interest

3.16B

16.16%

Futures

669.87B

1.26%

Perpetuals

II. Industry Updates

Macro-economic Policies

Stablecoin-powered payment cards are rapidly gaining traction, with payment volume and card issuance surging in 2025; this trend is expected to boost crypto adoption and on-chain liquidity, supporting DeFi and stablecoin transaction growth.

The U.S. Senate Banking Committee is actively discussing adjustments to stablecoin yield rules, with proposals to limit yield to transaction scenarios; potential changes could impact stablecoin demand and capital flows in DeFi markets.

President Trump has proposed a 10% cap on credit card interest rates, aiming to reduce consumer debt burdens; this could increase disposable income and potentially drive higher retail participation in crypto markets.

FedWatch data indicates a 95% probability that the Federal Reserve will keep interest rates unchanged in January, maintaining current liquidity conditions and supporting risk appetite in the crypto market.

Altcoins now account for 50% of total crypto trading volume, surpassing Bitcoin and Ethereum; this shift reflects increased risk-taking and could enhance volatility and liquidity across DeFi and NFT platforms.

Cryptocurrency Regulatory Trends

The US Senate Banking Committee will hold a markup hearing on crypto market structure legislation next Thursday, focusing on regulatory frameworks and oversight. This could impact investor confidence and compliance requirements.

The US Senate is considering adjustments to stablecoin yield regulations, with bipartisan support for limiting yields to transaction scenarios. This may affect stablecoin product competitiveness and user returns.

The House Financial Services Committee will review the CLARITY Act for crypto market structure on January 15, aiming to establish a comprehensive regulatory framework. This is expected to provide clearer rules for market participants.

US Senate Democrats demand strict ethics and conflict-of-interest safeguards in the proposed crypto market structure bill, highlighting ongoing scrutiny and the potential for delayed legislative progress.

Ripple has secured UK FCA registration under anti-money laundering rules, granting it a regulated foothold as the UK prepares stricter crypto regulations. This enhances Ripple’s compliance profile and supports its global expansion.

Polygon (POL): POL surged over 15% in 24h, driven by strong altcoin rotation and recent fee model upgrades on the Polygon network, boosting trading activity and user engagement.

JasmyCoin (JASMY): JASMY gained over 10% in 24h, fueled by renewed market interest and increased futures open interest, with analysts highlighting a constructive trend and potential for further upside.

Pump.fun (PUMP): PUMP rose nearly 10% in 24h after the platform revamped its creator fee model, significantly increasing trading volume and incentivizing new token launches on Solana.

Smart Money Movements

A trader on Hyperliquid deposited $5.1M and opened a $36.27M long in BTC, while shorting $36.87M in ETH, SOL, and AVAX, totaling $73.15M in positions.

BlackRock transferred 2,405 BTC ($217M) and 24,760 ETH ($76.6M), totaling $293.6M, to a Coinbase Prime escrow address, highlighting ongoing institutional crypto activity.

Amundi Smart Overnight Return UCITS ETF increased its MicroStrategy holdings by 1,600% to $32M, signaling strong institutional confidence in Bitcoin-focused strategies.

A whale transferred 570 BTC, valued at $51.5M, from Coinbase Institutional to an unknown wallet, indicating significant on-chain movement by large holders.

A crypto whale opened $310M in long positions across BTC ($109.5M), ETH ($100.6M), SOL ($69.9M), and XRP ($29.9M), pushing total profits above $9.4M.

Events to Watch

Jan 11 (Sun)

A 11.31 million token unlock event is scheduled, potentially impacting token liquidity and market sentiment.

Jan 12 (Mon)

Zama Privacy Coin will hold a public sale, aiming to raise $130 million; significant for privacy coin sector.

Jan 13 (Tue)

US December CPI and Core CPI data will be released, providing key insights into inflation and Fed policy outlook; 20.81 million token unlock event also scheduled.

Jan 14 (Wed)

US PPI, Personal Income, PCE, Retail Sales, and Current Account Deficit data for November will be released; US Federal Reserve Beige Book also published.

Jan 15 (Thu)

House Financial Services Committee to review CLARITY Act on crypto market structure; Sei Network (SEI) and 127 million token unlock events; US import/export price indexes released.

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