LayerZero, Axie Infinity Lead Altcoin Gains as ETF Outflows Pressure BTC

I. Crypto Market Overview

Key Takeaways

Macro Environment

The SEC and CFTC will hold a joint event to harmonize US crypto regulations, aiming to clarify oversight and boost market confidence. Nasdaq's proposal to remove position limits on Bitcoin and Ether ETF options could enhance institutional participation. The American Bankers Association's push to restrict stablecoin yields increases uncertainty for DeFi platforms and stablecoin liquidity.

Crypto Market

The crypto market showed mixed performance over the past 12 hours. Bitcoin (BTC) fell 0.05% to $89,442, while Ethereum (ETH) dropped 1.37% to $2,932.42, both pressured by continued ETF outflows and cautious sentiment. Altcoins diverged: LayerZero (ZRO) surged 19.9%, Axie Infinity (AXS) rose 13.8%, and DoubleZero (2Z) gained 12.4%, driven by strong protocol adoption, GameFi sector rotation, and major exchange listings.

Today's Outlook

Today features several notable token unlocks, including Spacecoin (SPACE) with a 10.25% supply release, which may impact liquidity and short-term price action. No major macroeconomic or regulatory events are scheduled for January 23, but market participants are closely watching for volatility from these unlocks.

Fear and Greed Index

22.00% Annual Percentile

34 Neutral

Total Crypto Market Cap

$3.01T

0.47%

Total Market Trading Volume

$100.87B

22.98%

Altcoin Season Index

63.64%

Quarterly Percentile

30 / 100

Total Futures Market Open Interest

3.58B

2.39%

Futures

603.15B

7.14%

Perpetuals

II. Industry Updates

Macro-economic Policies

UK inflation unexpectedly rose to 3.4%, prompting major banks to delay expectations for a Bank of England rate cut to March. Persistent inflation above target has led to increased volatility in GBP and cautious sentiment in crypto markets, as traders reassess risk and liquidity.

Japan's core CPI matched forecasts at 2.4% year-on-year, signaling stable inflation. The result reinforced expectations for continued accommodative monetary policy, supporting risk assets and contributing to short-term fluctuations in crypto and gold prices.

The American Bankers Association has made blocking stablecoin yields a top 2026 policy priority, viewing them as a threat to traditional deposits. This stance has increased uncertainty for DeFi platforms offering yield products, impacting stablecoin liquidity and user adoption in the crypto market.

Russia's ruble-backed stablecoin A7A5 has processed over $100 billion in transactions, facilitating cross-border flows despite Western sanctions. This has supported ruble liquidity and enabled Russian entities to access global crypto markets, influencing stablecoin trading volumes and market structure.

Taiwan's president offered direct cooperation with Ukraine to combat sanctions evasion, following allegations of illicit tech exports to Russia. This move may affect global supply chains and crypto flows linked to sanctioned entities, increasing compliance risks for cross-border transactions.

Cryptocurrency Regulatory Trends

The SEC and CFTC will hold a joint public event on January 27 to discuss harmonizing U.S. crypto regulations, aiming to clarify oversight and boost market confidence.

Nasdaq has filed with the SEC to remove position limits on Bitcoin and Ether ETF options, a move that could increase institutional participation and market liquidity if approved.

F/m Investments has applied to the SEC to tokenize shares of its Treasury ETF on a permissioned blockchain, signaling growing regulatory acceptance of tokenized real-world assets.

The American Bankers Association has made restricting stablecoin yields a top 2026 policy priority, pressuring lawmakers to limit digital dollar incentives and potentially impacting DeFi yields.

The U.S. SEC has released an investor bulletin on crypto wallets and storage, reflecting ongoing efforts to educate the public and enhance digital asset security awareness.

LayerZero (ZRO): LayerZero surged 19.3% in 24h to $2.29, driven by $220M+ trading volume and strong cross-chain protocol adoption, with over 1M holders and major CEX listings.

Axie Infinity (AXS): Axie Infinity jumped 14.4% in 24h to $2.86, fueled by $651M trading volume, Korean exchange activity, and GameFi sector rotation after SLP emissions cut.

DoubleZero (2Z): DoubleZero rose 12.4% in 24h to $0.1397, supported by $29M volume and Grayscale watchlist addition, as its Solana-based network expands low-latency trading infrastructure.

Smart Money Movements

BlackRock deposited $66.63 million in crypto to Coinbase, including 15,112 ETH ($44.38M) and 249.5 BTC ($22.25M), signaling continued institutional activity.

GameStop transferred its entire 4,710 BTC holding, worth approximately $430 million, to Coinbase Prime, potentially realizing a $76 million loss.

A whale acquired 566.8 XAUT tokens valued at $2.8 million from a centralized exchange, with a wallet balance of 11.36 million USDT indicating further accumulation potential.

Bitmine staked an additional 171,264 ETH, worth $503.24 million, raising its total staked Ethereum to 1,943,200 ETH ($5.73 billion).

A whale or institution executed a profitable ETH swing trade, selling 10,000 ETH at $3,321 and repurchasing 50,013 ETH at $2,966, netting a $98.18 million profit.

Events to Watch

Jan 26 (Mon)

BlockDAG presale ends; final price at $0.001 per coin before rising to $0.05. Significant for early investors and token supply.

Jan 27 (Tue)

Federal Reserve FOMC meeting begins; market expects rates to remain at 3.50%–3.75%. SEC and CFTC hold joint event on crypto regulation; US Senate Agriculture Committee marks up new crypto market structure bill.

Jan 28 (Wed)

FOMC announces policy rate decision and Chair's press conference; Bank of Canada releases interest rate decision; Australia Q4 CPI data released, impacting RBA rate outlook.

Jan 29 (Thu)

Federal Reserve policy meeting continues; FOMC meeting scheduled for 3:30am SGT, with global markets watching for any policy signals.

Jan 30 (Fri)

Eurozone Q4 GDP data released at 6:00pm SGT; Tokyo January CPI data published, both key for global macro sentiment.

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