Daily Crypto Briefing – January 25, 2026

Markets faced pressure this weekend as Bitcoin slipped below $88,000 and major tokens weakened ahead of the Federal Reserve's first rate decision of 2026. Meanwhile, regulatory developments and ecosystem changes continue to shape the crypto landscape.

Top Stories

Bitcoin Drops Below $88K Amid Fed Uncertainty

Bitcoin slipped below $88,000 as markets positioned ahead of the Federal Reserve's rate decision and major tech earnings. The selloff triggered over $135 million in liquidations in a single hour, highlighting market sensitivity to macro events.

Solana Pivots to Financial Infrastructure Focus

Backpack CEO Armani Ferrante told CoinDesk that Solana's ecosystem has spent the past year doubling down on financial infrastructure. This strategic shift represents a new phase for the blockchain platform as it matures beyond its initial focus areas.

A16z-Backed Entropy Shuts Down Operations

Entropy, the decentralized custody startup, is winding down and returning capital to investors after failing to find a scalable business model. The closure highlights ongoing challenges in the decentralized custody space despite significant backing.

XRP Tests Critical Support Levels

XRP dropped 4% as traders watch whether the $1.88 support level holds. The token has stabilized near recent lows after a volatile pullback from above $2, with market participants closely monitoring key technical levels.

Markets

ETF Outflows Continue

• Spot Bitcoin ETFs posted their worst week since February 2025 with $1.33 billion in outflows
• BlackRock's IBIT fund saw four consecutive days of outflows
• ARK Invest added positions in Coinbase, Circle, and Bullish during the crypto pullback
• GameStop transferred $420 million in Bitcoin to Coinbase Prime, sparking exit speculation

Market Analysis

• Bitcoin whale demand hits extreme levels despite price consolidation
• Crypto market shed $220 billion this week as total market cap approaches $3 trillion
• South Korean stablecoin trading surged 62% as the won weakened against the dollar

Regulation

CFTC Leadership on US Crypto Dominance

• CFTC Chair Selig declared America the crypto capital of the world
• Senate Agriculture Committee advances crypto market structure bill with $150M CFTC funding
• The CLARITY Act's Section 404 could impact crypto rewards and stablecoin yields

International Developments

• Colombia's second-largest pension fund will offer Bitcoin exposure to qualified investors
• Brazil opens crypto access to banks in regulatory streamlining move

Technology

Ethereum Security Upgrades

• Ethereum Foundation formed a post-quantum security team with $1 million research prize
• The move addresses growing quantum computing threats to blockchain security
• Ethereum open interest declined across exchanges, with Binance standing out

Network Updates

• Tezos Tallinn upgrade went live, slashing block times to 6 seconds
• BIP-110 proposal gains support from 583 Bitcoin nodes for transaction data caps
• Critical Solana vulnerability exposed how easily the network could have been stalled

DeFi & Business

Platform Closures

• Nifty Gateway NFT marketplace will wind down operations on February 23, 2026
• The Gemini-owned platform becomes another casualty of the NFT sector downturn

Corporate Moves

• MoonPay secured an eight-figure sponsorship deal with X Games League
• ZBD raised $40 million Series C for Bitcoin gaming payments
• Tether posted $5.2 billion revenue in 2025 from stablecoin dominance

Quick Hits

• Makina Finance lost $4.13 million in flash-loan exploit with MEV bot intervention
• South Korean prosecutors lost $47 million in