Crypto Market Slides: BTC, ETH Lead Declines Amid ETF Outflows and Weak Sentiment

I. Crypto Market Overview

Key Takeaways

Macro Environment

US December nonfarm payrolls missed expectations, highlighting persistent labor market weakness. The US unemployment rate unexpectedly fell to 4.4%, lifting Treasury yields and reducing near-term Fed rate cut expectations. Colombia's new crypto reporting rules and Ripple's UK FCA registration signal rising global regulatory scrutiny and institutional confidence.

Crypto Market

The crypto market saw broad declines over the past 12 hours, with BTC down 4.4% to $97,474 and ETH falling 9.3% to $3,144, pressured by ETF outflows and weak risk sentiment. Altcoins also dropped, with POL (-7.5%), JASMY (-9.2%), and PUMP (-8.0%) among the hardest hit, despite recent ecosystem news. Most sectors trended lower, led by meme and DeFi tokens, as risk-off flows dominated.

Today's Outlook

No major token unlocks or high-impact crypto events are scheduled for January 9, 2026, based on available token unlock calendars and event listings. Market participants should monitor for unexpected volatility amid ongoing macroeconomic and regulatory developments.

Fear and Greed Index

8.00% Annual Percentile

43 Neutral

Total Crypto Market Cap

$3.10T

0.79%

Total Market Trading Volume

$99.46B

11.93%

Altcoin Season Index

75.00%

Quarterly Percentile

37 / 100

Total Futures Market Open Interest

3.15B

2.18%

Futures

617.61B

8.52%

Perpetuals

II. Industry Updates

Macro-economic Policies

U.S. December nonfarm payrolls increased by only 50,000, missing expectations and signaling persistent labor market weakness, which may dampen risk appetite in crypto markets.

The U.S. unemployment rate unexpectedly dropped to 4.4%, causing Treasury yields to rise and reducing immediate expectations for Fed rate cuts, potentially limiting near-term upside for Bitcoin and DeFi assets.

Private sector job growth in the U.S. for 2025 averaged just 61,000 per month, the weakest since 2003, highlighting economic headwinds that could weigh on institutional crypto inflows.

Bond market reaction to the latest U.S. employment data suggests traders now expect the first Fed rate cut in mid-2026, delaying monetary easing that could otherwise boost crypto market liquidity.

Cryptocurrency Regulatory Trends

Ripple has secured registration with the UK's Financial Conduct Authority, allowing it to conduct certain crypto activities under anti-money laundering regulations. This enhances regulatory clarity and could boost institutional confidence in the UK crypto market.

Colombia's tax authority DIAN has implemented strict new crypto reporting rules, requiring exchanges to disclose user transaction details and report all crypto transactions over $50,000. This move increases transparency but may impact user privacy and compliance costs.

The US Senate is debating a crypto market structure bill that could restrict stablecoin rewards for retail investors, sparking industry criticism. Potential limitations on stablecoin yields may affect investor participation and stablecoin adoption.

South Korea will finalize stablecoin regulations in Q1 2026, mandating 100% reserves and user redemption rights, and plans to approve spot crypto ETFs. These measures aim to strengthen market stability and attract institutional investors.

BNY Mellon has launched tokenized deposit services, enabling blockchain-based fund transfers and 24/7 operations. This regulatory-compliant initiative signals growing institutional adoption and integration of digital assets in traditional finance.

Polygon (POL): Polygon (POL) surged over 15% in 24h, driven by the launch of its Open Money Stack platform for cross-border payments and a new stablecoin framework, with daily trading volume exceeding $273M.

JasmyCoin (JASMY): JasmyCoin (JASMY) gained 10% in 24h, ranking among top gainers as social sentiment and trading activity spiked, with 24h volume above $156M and strong retail interest fueling the rally.

Pump.fun (PUMP): PUMP.fun (PUMP) rose nearly 10% in 24h, reaching $120M in daily volume as its DEX hit a $2B milestone and meme coin sector momentum attracted significant speculative inflows.

Smart Money Movements

BlackRock transferred 2,405 BTC ($217M) and 24,760 ETH ($76.6M) to Coinbase Prime escrow, totaling $293.6 million in crypto assets.

Amundi Smart Overnight Return UCITS ETF increased its MicroStrategy holdings by 1,600%, raising its investment to $32 million.

A crypto whale deposited $8.09 million USDC to Hyperliquid and placed limit orders to buy 59,458 SOL, valued at approximately $8 million.

Amber Group deposited 5,800 ETH, worth $18.06 million, into the Copper platform, highlighting ongoing institutional Ethereum activity.

A major whale transferred 570 BTC, valued at $51.5 million, from Coinbase Institutional to an unknown wallet, signaling significant on-chain movement.

Events to Watch

Jan 11 (Sun)

A token unlock event involving 11.31 million tokens will occur; monitor for potential market impact.

Jan 13 (Tue)

A 20.81 million token unlock is scheduled, potentially affecting token liquidity and price dynamics.

Jan 14 (Wed)

US November Producer Price Index (PPI) data will be released, providing key inflation insights for markets.

Jan 15 (Thu)

Sei Network (SEI) unlocks 55.56M SEI ($7.25M, 1.05% supply); 127M token unlock; US import/export price indexes released.

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