Crypto Breaking

Quantum Computing Threats to Bitcoin: Security and Mining Implications

Advancements in quantum computing may pose significant risks to Bitcoin, not only compromising wallet security but also potentially disrupting its economic and security infrastructure. Experts warn that sufficiently powerful quantum computers could exploit cryptographic vulnerabilities, challenging the integrity of the world’s leading cryptocurrency.

Key Takeaways

Quantum computers could undermine Bitcoin’s cryptographic protections and mining processes.

Two primary threats include private key extraction and enhanced mining efficiency.

Current quantum technology is not yet a pressing threat, but the risk warrants vigilance.

Community efforts focus on developing pre-emptive quantum-resistant solutions.

Tickers mentioned: None

Sentiment: Cautiously concerned

Price impact: Neutral. While the immediate threat remains distant, potential vulnerabilities highlight the importance of proactive security measures.

Trading idea (Not Financial Advice): Maintain awareness of quantum developments and prioritize post-quantum security upgrades to safeguard assets.

Market context: As crypto markets mature, the emphasis on security advancements, including quantum resistance, becomes increasingly critical amid ongoing technological innovations.

Quantum Computing’s Dual Threat to Bitcoin

Quantum computing continues to be a hotly debated subject within the crypto community, primarily due to its potential to break existing cryptographic protocols. According to David Duong, Coinbase’s head of investment research, quantum computers may soon be capable of executing algorithms such as Shor’s and Grover’s, threatening the cryptographic signatures securing Bitcoin transactions.

“Bitcoin’s security fundamentally relies on two cryptographic elements: the Elliptic Curve Digital Signature Algorithm (ECDSA) for transaction authorization and SHA-256 for proof-of-work mining,” Duong explained. “Quantum computers could both compromise private key security and enhance mining capabilities, potentially destabilizing Bitcoin’s economic model.”

David Duong highlights the dual risks posed by quantum computing to Bitcoin’s security and mining integrity. Source: David Duong

Mining and the Quantum Threat

Mining relies on computational power to solve complex mathematical problems, uniquely allowing miners to add blocks to the blockchain. Quantum computers, with their exponential processing power, could revolutionize this process. They may enable a single entity to more easily perform a 51% attack—controlling over half of the network’s mining power and manipulating the blockchain.

However, Duong suggests that the immediate concern is less about quantum mining and more about cryptographic signature migration, emphasizing that the technology is not yet capable of posing an imminent threat.

“Quantum mining remains a lower-priority issue given current constraints, but preparing for post-quantum cryptography is essential for future security,” said Duong. “Today’s quantum machines are far too small to break Bitcoin’s cryptography, but ongoing vigilance is crucial.”

Debate Over the Timeline

Skeptics like Adam Back argue the quantum threat is decades away, citing technological hurdles that must be overcome before quantum computers can pose a real threat. Conversely, figures like Charles Edwards warn that the threat could materialize sooner, urging the community to accelerate security measures to protect against future risks.

This article was originally published as Quantum Danger to Bitcoin: More Than Just Cold Wallets Under Threat on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

US Community Bankers Advocate for Amendments to the GENIUS Act Amid Stablecoin Yield Loophole Concerns

In a targeted effort to tighten regulations surrounding stablecoins, a coalition of US community bankers is urging Congress to revise the GENIUS Act to close a perceived loophole that allows stablecoin issuers to offer yield indirectly through third-party exchanges. Their goal is to prevent these practices from undermining traditional banking services and protecting the stability of the financial system.

Key Takeaways

Community banks argue that stablecoin platforms are exploiting regulatory gaps, offering yield through partnerships with digital asset exchanges.

The GENIUS Act, enacted last year, bans stablecoins from providing interest to holders, citing concerns over competition with bank savings accounts.

Major exchanges like Coinbase and Kraken reward stablecoin holders, prompting calls for stricter regulation to prevent these activities from circumventing original restrictions.

The coalition warns that billions displaced from bank lending due to these practices could harm small businesses, farmers, students, and homebuyers in local communities.

Tickers mentioned: N/A — discussions are centered on regulation and stablecoins without specific stock tickers.

Sentiment: Bearish towards Loophole Exploitation

Price impact: Neutral — concerns focus on regulatory clarity rather than immediate market movement.

Trading idea (Not Financial Advice): Hold — regulatory changes could affect market dynamics, but immediate trading implications are uncertain.

Amid ongoing debates, the Community Bankers Council highlighted that stablecoin exchanges, along with affiliated companies, are not filling the lending gap effectively and do not offer products under the protection of regulatory insurance. They emphasized that allowing these activities to persist risks significant disintermediation of community lending, which could limit access to credit for small businesses, farmers, and consumers in smaller towns.

Source: American Bankers Association

The advocacy group calls for a legislative ban on stablecoin affiliates and partners from offering yield, emphasizing that current loopholes distort the crypto market structure. Efforts are underway to amend broader market legislation to address these issues. The push coincides with previous requests from major banking institutions, including JPMorgan (NASDAQ: JPM), which warned that unchecked stablecoin activities might lead to over $6.6 trillion in deposit outflows from traditional banks.

Meanwhile, prominent crypto advocacy organizations like the Crypto Council for Innovation and Blockchain Association have pushed back against these banking sector concerns, asserting that payment stablecoins do not serve as sources of funding for loans and warning that overregulation could hamper innovation and limit consumer choice. This ongoing regulatory discussion highlights the delicate balance between fostering innovation and safeguarding the financial ecosystem’s stability.

This article was originally published as Community Banks Demand Closure of GENIUS Act Loophole to Protect Interests on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Flow Network Recoveres After Protocol Exploit

The Flow Foundation has disclosed details of a security breach that compromised the blockchain on December 27, resulting in approximately $3.9 million in confirmed losses. The incident stemmed from a flaw in the network’s Cadence runtime, which allowed an attacker to duplicate tokens without draining user accounts or bypassing supply controls.

In its technical post-mortem, the Foundation explained that the attacker exploited a vulnerability that enabled asset duplication rather than actual minting, creating counterfeit tokens that temporarily flooded the network. The development team responded swiftly—validators coordinated a network halt within six hours of the malicious activity, switching the system into a read-only state to contain the problem and prevent further asset duplication.

Collaborating with exchange partners and security teams, most counterfeit tokens were frozen before they could be liquidated. The network recovery plan involved a two-day hiatus, during which legitimate transaction histories were preserved. Subsequently, the team executed a governance-approved process to permanently destroy the counterfeit assets, ensuring they did not circulate further.

Source: Flow Blockchain

The Foundation emphasized that no user account balances were compromised, as the attack only duplicated existing assets instead of extracting funds. A limited number of accounts involved with counterfeit tokens were temporarily restricted as a precaution, but over 99% of users maintained full access during and after the containment efforts.

Flow stated that it has since patched the underlying vulnerability, imposed stricter runtime validation checks, and expanded testing procedures to prevent similar exploits. Additionally, the project is working with forensic investigators and law enforcement agencies, with plans to enhance its monitoring and bug bounty programs as part of a broader security enhancement initiative.

Post-Hack Market Impact and Flow’s Turbulent Road

Developed by Dapper Labs—creators of CryptoKitties—the Flow blockchain was launched in September 2019 to address scalability issues faced by consumer applications like games and digital collectibles. The platform gained significant attention with the success of NBA Top Shot, an NFT platform for trading officially licensed NBA highlights, which helped propel the FLOW token above $40 in 2021, according to CoinGecko data.

In 2022, Flow secured approximately $725 million from investors such as Andreessen Horowitz and Union Square Ventures to foster ecosystem growth. However, as the NFT market cooled in subsequent years, FLOW lost considerable momentum and fell outside the top 300 cryptocurrencies by market capitalization. Following the December hack, the token experienced a steep decline of around 40% over a five-hour period, plunging to a low of $0.075 on January 2.

Since then, the token has shown signs of recovery, climbing to about $0.10, a 16% increase within 24 hours. Despite the setback, the community remains optimistic about the platform’s future prospects amid ongoing security enhancements and renewed investor interest.

Source: CoinGecko

This article was originally published as December Exploit Causes $3.9M in Counterfeit Token Losses — Shocking Details on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

MSCI Will Keep Digital Asset Treasury Firms in Its Global Indexes Amid Ongoing Review

MSCI, a leading provider of global investment indexes, announced it will retain digital asset treasury companies in its broader market indices. The decision comes after investor feedback and indicates ongoing assessment of firms with non-operational activities in the crypto space. This move aims to balance the inclusion of innovative digital asset strategies while maintaining index consistency.

Key Takeaways

MSCI will include digital asset treasury companies in its global indexes, citing investor demand.

The firm plans to conduct broader consultations to evaluate the nature of these companies.

Retention in the index sustains liquidity and demand for digital asset holdings, particularly Bitcoin.

Market reaction shows positive sentiment, with shares of strategy firms rising post-announcement.

Tickers mentioned: None

Sentiment: Neutral

Price impact: Positive, as inclusion supports ongoing demand and institutional exposure to digital assets.

Trading idea (Not Financial Advice): Hold. The reaffirmation of index inclusion may underpin long-term institutional interest in digital asset treasury firms.

Market context: The decision reflects a broader trend of institutional acceptance and regulatory clarity beginning to shape crypto investments.

Following MSCI’s recent update, shares of Michael Saylor’s MicroStrategy, the largest corporate Bitcoin holder, surged 5.7% in after-hours trading. The company holds approximately 673,783 Bitcoin, valued at nearly $63 billion, positioning it as a major player in corporate digital asset strategy. The move by MSCI signals growing recognition of digital asset treasury holdings as integral components of diversified portfolios, encouraging broader institutional participation.

In its note, MSCI explained that digital asset treasury companies would be subject to further consultation, particularly from investors and analysts scrutinizing whether their primary activities are operational or investment-oriented. The broader review aims to ensure index consistency by excluding firms whose main focus is investment rather than operational activities, though the current stance favors inclusion for now.

This development comes amid recent market volatility and questions surrounding the sustainability of corporate treasury strategies involving cryptocurrencies. Despite these concerns, the renewed index inclusion highlights ongoing institutional confidence in digital assets and their strategic importance. Market observers suggest that as regulatory frameworks evolve, the integration of digital assets within mainstream indexes could accelerate, further legitimizing crypto as an asset class.

The decision is viewed as a positive development for firms like MicroStrategy, which continue to expand their Bitcoin holdings and use digital assets as part of their corporate strategy. As MSCI continues its review process, industry participants anticipate further clarity on how digital assets will be integrated into global investment benchmarks.

This article was originally published as MSCI Continues to Include Digital Asset Treasury Firms in Key Indexes on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

US Political Uncertainty Could Delay Crypto Market Structure Legislation

Recent insights from investment bank TD Cowen suggest that the upcoming 2026 U.S. midterm elections could significantly influence the passage of a comprehensive digital asset market structure bill. Originally passed by the House of Representatives in July under the name the CLARITY Act, the legislation is currently known in the Senate as the Responsible Financial Innovation Act. Experts warn that political dynamics may postpone its full enactment, potentially until 2029.

According to TD Cowen’s Washington Research Group, Senate Democrats may hold back support for the bill because the elections could shift the ideological balance of Congress. With current control favoring Republicans, lawmakers might choose to delay or stall the legislation until after the midterms, when a different party might assume majority power. As the report notes, “Election outcomes are always uncertain, which is why Democrats may cut a deal.”

In a bipartisan effort last November, the Senate Agriculture Committee included provisions intended to prevent conflicts of interest within the industry. These safeguards aim to restrict government officials, including then-President Donald Trump and his family, from holding cryptocurrencies or engaging directly with the industry. This move underscores ongoing concerns among Democrats regarding Trump’s ties to the crypto space, which involve ventures like World Liberty Financial, and also touch on his potential involvement in pardoning efforts related to crypto executives such as Binance’s former CEO Changpeng Zhao and the Trump-inspired meme coin, Official Trump.

TD Cowen emphasizes that the timing of legislation is critical: “Time favors enactment as the problems disappear if the bill passes in 2027 and takes effect in 2029. Crypto would need to accept that the presidential election could impact the final rules, and Democrats would need to accept that the conflict provision will not apply to Trump.”

Upcoming Markup and Regulatory Shifts

The Responsible Financial Innovation Act is expected to undergo further review in the Senate Banking and Agriculture Committees in early January, with a potential markup in the second week. If enacted into law, the bill would expand the authority of the Commodity Futures Trading Commission over digital assets, shifting regulatory power away from the Securities and Exchange Commission. Notably, both agencies currently have only Republican commissioners, following the departure of SEC Commissioner Caroline Crenshaw, with President Trump yet to appoint replacements for the Democratic seats.

This legislative development reflects broader efforts to clarify the regulatory landscape for cryptocurrencies in the United States and highlights the ongoing political debates that could shape the future of the industry’s legal framework.

This article was originally published as US Crypto Market Regulation Bill Might Be Delayed Until 2027: Key Report on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Morgan Stanley has officially filed registration statements for Bitcoin and Solana exchange-traded funds (ETFs), signaling another significant move into the cryptocurrency space. The filings, submitted to the U.S. Securities and Exchange Commission (SEC), outline plans for two separate Trusts that aim to provide institutional investors with spot exposure to both digital assets.

The Bitcoin Trust will track the price of Bitcoin and offer in-kind creation and redemption, a mechanism designed to reduce tracking error and improve tax efficiency. Details about the ETF’s listing exchange and custody provider have not been disclosed in the filing.

Similarly, the Solana Trust will mirror the price movement of Solana and include staking capabilities. By staking SOL, the fund aims to generate additional yield for investors. This strategy reflects a growing interest among asset managers in diversifying fund income sources in the cryptocurrency sector.

Institutional Access and Advisory Integration

This development comes as Morgan Stanley continues to expand its crypto offerings across multiple investor segments. The firm had previously opened Bitcoin access to all its wealth clients and revealed plans to introduce crypto trading through its E*Trade division. The new ETFs could be integrated into Morgan Stanley’s advisory platform, which manages nearly $9 trillion in assets.

Industry analysts believe that these filings align with the company’s strategy of providing clients with direct access to regulated crypto investment vehicles without relying on external ETF issuers.

Competitive Position Among Asset Managers

With this move, Morgan Stanley is expected to join other traditional financial institutions such as BlackRock, Bitwise, and Franklin Templeton in the competitive crypto ETF space. The current market comprises 12 approved spot Bitcoin ETFs, which collectively manage over $123 billion in assets, representing approximately 7% of Bitcoin’s total market capitalization.

In the Solana ETF space, Morgan Stanley is positioning itself to become the ninth issuer. Since their launch in October last year, Solana ETFs have accumulated $1.09 billion in assets, accounting for 1.4% of the token’s market value.

This article was originally published as Morgan Stanley Expands Crypto Offerings with Bitcoin and Solana ETF Filings on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Grayscale has initiated its first distribution of Ethereum staking rewards to shareholders of its Ethereum Staking ETF, marking a significant development in the institutional integration of staking-based returns. Shareholders recorded as of January 5 will receive a per-share cash payout of 0.083178, with payments scheduled for January 6. The rewards cover staking activity from early October through the end of December.

The payout marks a turning point for staking, which has traditionally been confined to native crypto platforms. Grayscale’s move converts on-chain Ethereum staking yields into regulated cash payments, aligning with investor expectations in conventional exchange-traded fund structures. The ETF’s feature expansion in late 2025 allowed Grayscale to incorporate staking mechanisms, reflecting its effort to deepen investor engagement with Ethereum’s network economics.

Ethereum ETF Inflows Resume Following Market Volatility

The staking reward release coincides with renewed inflows into U.S.-based Ethereum ETFs. Data from SoSoValue shows net weekly inflows have turned positive, indicating recovering investor sentiment. The total net assets under management across Ethereum ETFs have rebounded to nearly $19 billion. This comes after a period of significant outflows, during which crypto markets experienced sharp price corrections.

Despite recent market stress, institutional buyers continue to accumulate Ethereum. Analysts report that over $2.8 billion has exited Ethereum ETFs since the peak inflows of approximately $15 billion, representing nearly 18% of cumulative flows. However, large purchases by Ethereum whales and fund positioning by major players like BlackRock suggest confidence remains strong in Ethereum’s long-term potential.

Staking Adoption Strengthens Ethereum ETF Market Position

Grayscale emphasized that its staking-enabled fund includes liquidity and security measures to safeguard investor interests. The firm also signaled its intention to expand Ethereum-related offerings further. The inclusion of staking in a regulated ETF framework is consistent with broader institutional trends, as Ethereum continues to attract strategic accumulation.

This article was originally published as Grayscale Issues Staking Rewards Amid Renewed Ethereum ETF Inflows on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin Faces Resistance Amid Choppy Price Action Near $95,000

Bitcoin has encountered significant resistance as it attempts to push past the $95,000 level, with market participants watching for signs of a breakout or rejection at a substantial sell wall. The leading cryptocurrency’s recent price activity has been marked by uncertainty, with momentum waning after reaching its highest point since November 17. While support remains firm on weekly charts around $93,500, traders are cautious amid a complex technical landscape.

Key Developments and Market Dynamics

Bitcoin is encountering substantial seller interest around $95,000, creating a formidable barrier that has tested recent bullish momentum.

Recent technical analysis highlights a significant “passive seller” at $94,000, indicating a tendency for the market to sell into rallies as traders react to key price levels.

Order book data reveals an imposing sell wall at $95,000, suggesting that the market could either break through this resistance or face rejection, leading to a possible decline.

Despite macroeconomic strength in traditional markets and commodities such as gold, Bitcoin’s price performance has been relatively subdued, struggling to maintain upward momentum.

Market Sentiment and Broader Asset Movements

Market sentiment remains cautiously optimistic, with US equities trending higher and gold reaching around $4,491 per ounce. Notably, silver prices surpassed $80 per ounce, marking a 13% increase year-to-date, buoyed by developments in Venezuela and broader geopolitical factors. The correlation between crypto assets and traditional risk assets has strengthened, suggesting a regime shift aligned with macroeconomic themes.

“Crypto’s recent alignment with broader risk assets may signal a regime shift and the strengthening of bullish narratives to start the year,”

noted a recent market update from QCP Capital. This shift comes after the completion of year-end tax-loss harvesting, potentially paving the way for renewed bullishness, especially with upcoming regulatory developments in focus.

Technical Outlook and Long-Term Perspectives

Analyst Rekt Capital emphasized the importance of a weekly close above $93,500, a level critical for maintaining a mid-term bullish bias. Such a close could confirm a breakout from the current trading range and signal the end of a weekly downtrend that has persisted since October 2025. Conversely, failure to hold this level may extend consolidation or lead to a correction.

Despite short-term headwinds, the broader technical picture remains cautiously optimistic, with the weekly support level at $93,500 serving as a key indicator of potential future strength. The market continues to watch for decisive movement at critical resistance levels, which could set the tone for the coming weeks.

This article was originally published as Can $95,000 Sellers Sabotage Bitcoin’s Big Comeback? on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Is the “crypto treasury” strategy a double-edged sword for investors?

Recently, the crypto-treasury stock model has come under scrutiny as its performance during market downturns reveals significant vulnerabilities. While these stocks often provided lucrative exposure to Bitcoin and other digital assets during bullish periods, their behavior during declines exposes inherent risks tied to their structure and investor sentiment.

Key Takeaways

Crypto-treasury stocks tend to outperform underlying assets during bull markets but suffer exaggerated losses in downturns.

Ownership in these stocks reflects corporate structures and management decisions, not direct crypto exposure.

Premiums in rising markets rapidly turn into discounts during declines, amplifying losses.

Leverage and market mechanics exacerbate declines beyond those of underlying cryptocurrencies.

Tickers mentioned: crypto stocks, Bitcoin, Ether

Sentiment: Cautiously Bearish

Price impact: Negative, as declines in market sentiment lead to rapid devaluations of crypto-related equities

Trading idea (Not Financial Advice): Caution advised—investors should consider direct crypto ownership over leveraged, corporate structures during volatile periods.

Market context: These dynamics are unfolding amid broader macroeconomic uncertainties and increasing regulatory scrutiny in traditional markets.

Understanding the “Crypto Treasury” Strategy

Initially, many companies acquired Bitcoin or other cryptocurrencies to gain exposure through their treasury strategies, expecting this to enhance shareholder value. During bullish markets, these stocks often traded at a premium driven by expectations of efficient crypto acquisition and financial engineering. However, the relationship between stock prices and crypto values tends to deteriorate sharply during market sell-offs. For example, since October 2025, Bitcoin declined approximately 30%, while some crypto-related stocks plunged nearly 57%, illustrating the heightened volatility and risk.

This divergence stems from the fundamental difference between owning equity in a corporate entity versus holding crypto directly. Investors buy shares in companies that hold crypto, subject to management decisions, capital structure, and regulatory risks. Such ownership introduces leverage—companies often finance crypto holdings through debt or issuance, amplifying losses during downturns. When crypto prices fall, equity holders absorb the most significant part of the losses, often disproportionately.

Premiums, Discounts, and NAV Challenges

These stocks usually trade at a premium to their net asset value (NAV) during bullish periods because investors anticipate future growth, strategic acquisitions, or financial restructuring benefits. Conversely, during downturns, investor sentiment shifts, premiums evaporate, and shares can trade at discounts, exacerbating losses. As the market pessimism intensifies, share prices decline not only due to falling crypto prices but also because of shrinking valuation multiples and increased risk aversion.

This pattern is further intensified by the structure of the market, as crypto equities are less liquid than their underlying assets and sensitive to short-term speculative behavior. The use of debt and convertible securities also introduces leverage, leading to amplified losses during market stress. Furthermore, traditional stock market mechanics—such as lower liquidity, rapid risk-off trading, and options-driven volatility—deepen declines, fueling a cycle of disinvestment.

The Evolving Role of ETFs and Market Dynamics

Previously, crypto-treasury stocks served as proxies for institutional investors unable or unwilling to hold crypto directly. With the advent of regulated spot ETFs tracking Bitcoin and Ether, that role has diminished, offering more direct and less leveraged exposure. During risk-off periods, capital tends to flow from these proxy stocks into ETFs or exit the crypto market entirely, causing premiums to collapse more rapidly than before.

A case study is provided by the recent performance of Strategy, which, during market downturns since 2025, saw its stock drop far more sharply than Bitcoin itself—a consequence of declining NAV, premium compression, issuing dilution concerns, and risk aversion in equity markets.

Ultimately, these dynamics underscore the importance of understanding the comprehensive risks associated with crypto-treasury strategies—risks that become especially pronounced during periods of market stress and shifting investor sentiment.

This article was originally published as Why Crypto-Treasury Stocks Are Plummeting Faster Than Their Assets on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Is the “crypto treasury” strategy a double-edged sword for investors?

Recently, the crypto-treasury stock model has come under scrutiny as its performance during market downturns reveals significant vulnerabilities. While these stocks often provided lucrative exposure to Bitcoin and other digital assets during bullish periods, their behavior during declines exposes inherent risks tied to their structure and investor sentiment.

Key Takeaways

Crypto-treasury stocks tend to outperform underlying assets during bull markets but suffer exaggerated losses in downturns.

Ownership in these stocks reflects corporate structures and management decisions, not direct crypto exposure.

Premiums in rising markets rapidly turn into discounts during declines, amplifying losses.

Leverage and market mechanics exacerbate declines beyond those of underlying cryptocurrencies.

Tickers mentioned: crypto stocks, Bitcoin, Ether

Sentiment: Cautiously Bearish

Price impact: Negative, as declines in market sentiment lead to rapid devaluations of crypto-related equities

Trading idea (Not Financial Advice): Caution advised—investors should consider direct crypto ownership over leveraged, corporate structures during volatile periods.

Market context: These dynamics are unfolding amid broader macroeconomic uncertainties and increasing regulatory scrutiny in traditional markets.

Understanding the “Crypto Treasury” Strategy

Initially, many companies acquired Bitcoin or other cryptocurrencies to gain exposure through their treasury strategies, expecting this to enhance shareholder value. During bullish markets, these stocks often traded at a premium driven by expectations of efficient crypto acquisition and financial engineering. However, the relationship between stock prices and crypto values tends to deteriorate sharply during market sell-offs. For example, since October 2025, Bitcoin declined approximately 30%, while some crypto-related stocks plunged nearly 57%, illustrating the heightened volatility and risk.

This divergence stems from the fundamental difference between owning equity in a corporate entity versus holding crypto directly. Investors buy shares in companies that hold crypto, subject to management decisions, capital structure, and regulatory risks. Such ownership introduces leverage—companies often finance crypto holdings through debt or issuance, amplifying losses during downturns. When crypto prices fall, equity holders absorb the most significant part of the losses, often disproportionately.

Premiums, Discounts, and NAV Challenges

These stocks usually trade at a premium to their net asset value (NAV) during bullish periods because investors anticipate future growth, strategic acquisitions, or financial restructuring benefits. Conversely, during downturns, investor sentiment shifts, premiums evaporate, and shares can trade at discounts, exacerbating losses. As the market pessimism intensifies, share prices decline not only due to falling crypto prices but also because of shrinking valuation multiples and increased risk aversion.

This pattern is further intensified by the structure of the market, as crypto equities are less liquid than their underlying assets and sensitive to short-term speculative behavior. The use of debt and convertible securities also introduces leverage, leading to amplified losses during market stress. Furthermore, traditional stock market mechanics—such as lower liquidity, rapid risk-off trading, and options-driven volatility—deepen declines, fueling a cycle of disinvestment.

The Evolving Role of ETFs and Market Dynamics

Previously, crypto-treasury stocks served as proxies for institutional investors unable or unwilling to hold crypto directly. With the advent of regulated spot ETFs tracking Bitcoin and Ether, that role has diminished, offering more direct and less leveraged exposure. During risk-off periods, capital tends to flow from these proxy stocks into ETFs or exit the crypto market entirely, causing premiums to collapse more rapidly than before.

A case study is provided by the recent performance of Strategy, which, during market downturns since 2025, saw its stock drop far more sharply than Bitcoin itself—a consequence of declining NAV, premium compression, issuing dilution concerns, and risk aversion in equity markets.

Ultimately, these dynamics underscore the importance of understanding the comprehensive risks associated with crypto-treasury strategies—risks that become especially pronounced during periods of market stress and shifting investor sentiment.

This article was originally published as error code: 524 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Abu Dhabi, United Arab Emirates, Tuesday 06 January 2026 — As the UAE heads into 2026, its real estate sector is entering the year on the back of robust growth, underpinned by strong population inflows, sustained residential demand, and emerging innovations such as property tokenisation, according to Farhan Badami, Market Analyst at eToro.

Farhan Badami Business Development Manager At Etoro

“The UAE’s real estate market continues to benefit from powerful structural tailwinds,” Badami said. “Population growth remains a key driver of housing demand, while new technologies such as tokenisation are beginning to reshape how properties are bought, sold and valued across major markets like Dubai and Abu Dhabi.”

Both Dubai and Abu Dhabi are experiencing a demographic expansion that continues to support residential demand. Dubai’s population surpassed four million in 2025, with more than 208,000 new residents added over the year. This growth, driven by employment opportunities, lifestyle appeal and long-term residency initiatives, has translated into record activity levels in the property market.

“In 2025 alone, Dubai recorded property transactions exceeding AED 680 billion, representing year-on-year growth of around 30%,” Badami noted. “Abu Dhabi is showing a similar pattern, with residential demand growing by approximately 5% to 6% annually, significantly outpacing the rate of new housing supply.”

Looking ahead to 2026, one of the key developments to watch will be the shift towards tokenisation and fractional ownership. What was once largely theoretical is now moving into practical implementation, with Dubai’s Land Department launching a tokenisation pilot that integrates blockchain-based property titles into the official land registry.

“This initiative has the potential to fundamentally change how real estate is traded,” Badami said. “Tokenisation could allow investors to purchase fractional ownership in property assets with greater speed, transparency and efficiency, while also improving market liquidity over time.”

He added that sustained population growth continues to support pre-sales activity, pricing power and recurring rental income, while a more mature market environment favours well-capitalised developers with strong land banks and proven execution capabilities.

“At the same time, innovation such as tokenisation may open up new funding channels and broaden the investor base,” Badami explained. “For investors, this reinforces the appeal of established developers with meaningful exposure to residential demand in Dubai and Abu Dhabi.”

From an equity market perspective, Badami believes the real estate upswing points to a sector supported by fundamentals rather than speculation.

“For stocks linked to the real estate ecosystem, from developers to financial institutions, the outlook suggests scope for steady earnings growth,” he said. “Healthier cash flows also support the potential for sustainable dividend growth, which will be a key focus for income-oriented investors in the year ahead.”

Media contacts
pr@etoro.com

About eToro

eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.

Disclaimers:

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Other fees apply. Terms and conditions apply.

eToro is a group of companies that are authorised and regulated in their respective jurisdictions. The regulatory authorities overseeing eToro include:

The Financial Conduct Authority (FCA) in the UK

The Cyprus Securities and Exchange Commission (CySEC) in Cyprus

The Australian Securities and Investments Commission (ASIC) in Australia

The Financial Services Authority (FSA) in the Seychelles

The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE

The Monetary Authority of Singapore (MAS) in Singapore.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.

This article was originally published as UAE Real Estate Heads into 2026 After AED 680B Year of Transactions on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Telegram Reports Significant Revenue Growth in 2025 Amid IPO Exploration

Telegram, the widely used messaging platform known for its cryptocurrency-friendly stance, has announced a notable increase in its operational revenue for the first half of 2025. The company’s efforts to position itself for a potential initial public offering (IPO) are gaining momentum, supported by substantial revenue figures and strategic financial moves.

Key Takeaways

Telegram’s revenue surged 65% year-over-year, reaching $870 million in the first half of 2025.

Approximately one-third of this revenue, around $300 million, stemmed from “exclusivity agreements” linked to its cryptocurrency Toncoin.

The company’s bonds worth $500 million are currently frozen in Russia’s central securities depository amid Western sanctions, complicating its financial landscape.

Despite posting a net loss of over $220 million, Telegram remains optimistic about reaching its $2 billion revenue target for 2025.

Tickers mentioned: None

Sentiment: Positive

Price impact: Neutral, as the company’s revenue growth is offset by losses and geopolitical challenges.

Market context: Telegram’s financial performance reflects a broader trend of established tech firms navigating sanctions and geopolitical risks in their expansion strategies.

Financial Performance and Strategic Moves

In its recent financial disclosures, Telegram revealed that its revenue jumped to $870 million in the first half of 2025, marking a 65% increase from $525 million the previous year, according to unaudited financial statements cited by the Financial Times. A significant portion of this growth was driven by “exclusivity agreements,” which generated approximately $300 million. These agreements are tied to earnings from Toncoin, Telegram’s associated cryptocurrency, which has experienced notable volatility.

Toncoin (TON) price chart in 2025. Source: CoinGecko

The report indicates that Telegram sold over $450 million worth of Toncoin during this period, representing approximately 10% of TON’s market capitalization, which stood at around $4.6 billion as per CoinGecko. Despite these revenues, Telegram posted a net loss exceeding $220 million, primarily attributable to a write-down of its Toncoin holdings, which depreciated by 69% in 2025.

Debt and Sanctions Developments

The company disclosed that $500 million of its bonds have been frozen in Russia’s central securities depository due to Western sanctions. Telegram’s spokesperson clarified that these bonds, issued in 2021, are unrelated to its latest funding efforts, as its recent bond offerings in 2025 excluded Russian investors. The platform’s latest bond issuance in May 2025, which raised $1.7 billion, included prominent backers like BlackRock and Mubadala. Telegram has also repurchased most bonds maturing in 2026 to mitigate exposure.

Although Telegram remains under scrutiny—its CEO Pavel Durov is under investigation in France over alleged failures to address criminal content—the company maintains cooperation with authorities and insists that sanctions do not threaten its operational stability. The ongoing investigations, however, may influence its path to a potential IPO, which remains under consideration as the company continues to navigate geopolitical and regulatory hurdles.

This article was originally published as Telegram Sells $450M Toncoin Amid Price Drop: Latest Report on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Crypto Market Sees Renewed Enthusiasm as Bitcoin ETF Inflows Resurge

Bitcoin exchange-traded funds (ETFs) are experiencing significant inflows at the start of 2026, indicating renewed investor confidence. After months of net outflows, recent data reveals that US spot Bitcoin ETFs attracted over $697 million on the second trading day of the year, pushing the total net inflows in early January beyond $1.1 billion, according to Farside Investors.

This reversal marks a positive change from the previous two months, which saw Bitcoin ETFs witnessing substantial outflows—$3.48 billion in November and $1.09 billion in December, as reported by Sosovalue. The recent surge in inflows signifies a shift in market sentiment, with investors regaining interest in crypto assets following a period of caution.

Furthermore, the inflows are contributing to Bitcoin’s renewed momentum, echoing a pattern observed in 2025 where ETF activity played a crucial role. Standard Chartered’s global head of digital assets research, Geoff Kendrick, noted that these inflows were instrumental in driving Bitcoin’s upward trajectory last year. Similar enthusiasm is evident across other crypto assets, with Ether ETFs attracting $168 million and Solana ETFs garnering $16.8 million, marking their second and twentieth consecutive days of inflows, respectively.

Part of this renewed demand stems from a broader “rebalancing phase” amid geopolitical uncertainty and liquidity adjustments, according to Lacie Zhang, research analyst at Bitget Wallet. Zhang commented that institutional buyers are actively absorbing supply, supporting a near-term crypto rebound. She emphasized that Bitcoin could potentially surge toward $105,000, while Ethereum might test the $3,600 level, as traders weigh inflation risks against long-term adoption prospects.

Meanwhile, a recent report from Matrixport attributes the optimistic market environment to the “clean-slate effect” of the New Year, which allowed markets to reset after a significant $19 billion crypto market crash in October. The unwinding of approximately $30 billion worth of Bitcoin and Ether futures leverage has led to leaner positioning among traders, creating room for a possible upward move without the drag of speculative excess.

Despite these positive signs, industry experts highlight that smart money traders remain cautious. Data from Nansen shows that the most successful traders are currently net short on Bitcoin, with positions totaling $108 million and an additional $19 million in net short positions added over the past day. Conversely, they maintain a net long stance on Ether and XRP, indicating some optimism about these altcoins’ prospects.

Overall, the crypto market appears poised for a potential rebound, driven by renewed ETF inflows and institutional activity, amidst a backdrop of market clearing and strategic repositioning.

This article was originally published as Bitcoin ETFs Surge: $697M Invested on Second Day of 2026 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Dubai, UAE, January 06, 2026: Ziina, the UAE’s leading homegrown consumer and business payments platform, today announced the launch of Ziina Violet, a new lifestyle membership that brings together everyday benefits from the UAE’s most loved brands and introduces zero currency fees on global spending. Violet marks Ziina’s evolution from a payments platform into a unified daily lifestyle companion for the country’s growing digitally native population.

Designed around the habits that shape life in the UAE, Ziina Violet provides practical, recurring value through benefits that fit naturally into how people already eat, shop, commute, exercise and live. Members receive curated, high-frequency benefits from trusted partners including SALT, Ounass, ClassPass, Deliveroo, CAFU, Yango Group, Bateel El’an, Washmen, Letswork, Bake My Day and NordVPN.

A standout feature of Violet is zero currency fees on Ziina Card spending in any currency, whether shopping online or travelling abroad. For UAE residents, foreign exchange markups can significantly inflate international purchases. Violet removes these hidden costs, allowing members to pay globally at the true exchange rate and avoid unnecessary fees. Members also receive dedicated support and an exclusive Violet design for the Ziina Card, powered by Visa.

The membership costs 100 AED per month and delivers over 850 AED in monthly value through benefits, savings and partner offers.

Violet enters a landscape where lifestyle benefits and loyalty programmes are widespread but often fragmented, generic, or difficult to track. This stands in contrast to the behaviour of the UAE’s young, highly digital population where the median age is 32.8, and 67% of consumers used their phone for their most recent purchase, according to Visa. The UAE loyalty market, valued at USD 490.8 million in 2025 and projected to reach USD 817.6 million by 2029, reflects strong demand for value, but also clear fatigue with programs lacking everyday relevance or simple redemption experiences.

Faisal Toukan, Co-Founder and CEO of Ziina stated: “Ziina Violet brings together the UAE’s most beloved brands into one beautifully simple experience. For the first time, your everyday life – how you move, shop, eat, and travel – feels effortless. Our vision at Ziina has always been to remove friction from money and give people magic in return. Violet is the next chapter of that vision: one membership, one card, and one unified ecosystem that elevates daily life across the UAE. This is what financial services should have always felt like.”

Cate Donovan, VP of ClassPass Corporate – UK commented: “ClassPass empowers people to explore the best fitness and wellness experiences in their communities. Ziina Violet complements that mission by offering a beautifully simple way to access daily benefits in one place. By pairing our network of studios, spas, and wellness spaces with Violet’s unified membership, we’re helping members stay active while unlocking meaningful value in the moments that matter most.”

Ziina Violet is now available to all Ziina users across the UAE. Ziina will continue expanding the experience with new capabilities and partnerships over time. ziina.com

About Ziina

Ziina is a UAE-based licensed fintech platform founded in 2020 by Faisal Toukan, Sarah Toukan and Talal Toukan. Built for consumers and businesses alike, Ziina provides a fast and secure way to spend, receive, and manage money. Its mission is to enable financial freedom for every person in the Arab World.

Ziina combines award-winning design with products that support everyday financial needs, including instant transfers, customizable payment links, QR code payments, Tap to Pay on iPhone and Android, and the Ziina Card available through Apple Pay and Google Pay. Its curated lifestyle membership program, Ziina Violet, offers benefits from the UAE’s most loved brands and zero currency fees on global spends with the Ziina card.

Licensed by the Central Bank of the UAE, Ziina is committed to transparency, offering its services without initiation fees or hidden charges. With its user-friendly interface and growing ecosystem, Ziina serves as a trusted financial partner to over 260,000 businesses and consumers in the UAE. More information at ziina.com.

This article was originally published as ZIINA introduces Violet, everyday benefits from the UAE’s most loved brands plus zero currency fees on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Wedge consolidation narrows volatility and signals rising breakout pressure across key price levels.

Resistance near higher range zones continues to define Ethereum’s directional bias.

Price structure shows stabilization, yet momentum suggests an approaching high-stakes move.

Ethereum trades at a pivotal zone as tightening price action forms a wedge pattern and narrows volatility across key levels. ETH price prediction gains urgency because compression near resistance and support now signals growing pressure for a decisive breakout. Momentum remains mixed, yet the evolving structure points toward an approaching move that could define the next market direction.

$ETH – Last weeks candle engulfed the previous two weeks red candles

Also closed above orange line.

Looks promising pic.twitter.com/hu4l0Qvb17

— Kingpin Crypto (@Kingpincrypto12) January 5, 2026

Daily Chart Signals Compression Near Resistance

ETH trades slightly above a former descending channel, and price action shows signs of stabilization, yet direction remains unconfirmed. Resistance near the 3,500 range still limits upside attempts, and repeated rejections underline persistent supply pressure. The broader structure stays neutral to bearish, and rallies continue to resemble retracements rather than full trend reversals.

Price now sits under a cluster of moving average resistance, and activity shows limited follow-through after recent gains. Yet short-term sentiment improved as the asset broke marginally above channel dynamics and held those levels. Still, ETH price remains dependent on sustained acceptance above resistance because trend confirmation requires strong continuation.

Momentum readings show fading downside strength, and buyers defend higher lows while sellers guard major resistance. Compression tightens the range, and volatility continues to contract into the narrowing structure. The daily chart signals preparation for expansion, but direction will depend on the next decisive break.

Four-Hour Chart: Wedge Formation Narrows

On the four-hour chart, ETH trades inside a contracting wedge, and both boundaries hold firm. Price respects a rising lower line while reacting to a descending upper trendline, which reflects balance. The structure signals indecision after a prior decline while the market waits for a catalyst.

A break above 3,400 with strong acceptance would indicate renewed upside momentum and would challenge higher resistance. Failure near the wedge ceiling may trigger renewed rejection, and sellers could attempt to regain control. ETH price  again hinges on resolution of this tightening consolidation.

Until a clean breakout develops, the market treats the structure as corrective and range-bound. Yet, shrinking volatility often precedes directional moves, and current compression strengthens that scenario. The wedge signals that a high-stakes breakout phase likely approaches.

On-Chain Context and Market Structure

Network activity remains firm, and smart contract deployment trends reinforce structural strength across the ecosystem. Stablecoin transfer volume stays elevated, and Layer-2 adoption continues to support usage. Fundamentals provide a supportive backdrop even while price trades below major resistance.

Leverage metrics indicate heightened sensitivity to abrupt swings, and liquidations remain a visible risk during sharp moves. Yet declining funding rates suggest moderation in directional exposure across derivatives markets. Price alignment with stronger transaction growth would improve sustainability of any upside break.

Support near the 2,772 zone has shown resilience across recent retests, and market participants monitor that region for reactions. Resistance zones between 3,032 and 3,500 define the upper barrier for the next phase. Therefore, the coming sessions carry significance, and the wedge pattern signals that resolution may arrive soon.

This article was originally published as ETH Price Prediction: Wedge Consolidation Signals a High-Stakes Breakout Ahead on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

South Korea Considers Preemptive Crypto Account Freezes to Combat Market Manipulation

South Korean financial authorities are evaluating a new regulatory measure that would enable preemptive freezing of crypto accounts suspected of market manipulation. The move aims to address ongoing concerns about illicit activities in the rapidly evolving cryptocurrency sector, aligning crypto enforcement more closely with traditional securities regulation.

Key Takeaways

Authorities contemplate a payment suspension system to block transactions before illicit gains are laundered.

The proposed system would mirror existing tools used in South Korea’s stock market to freeze manipulated accounts.

The initiative responds to the challenge of delayed asset forfeiture due to court warrant procedures in crypto cases.

Broader regulatory efforts include measures to hold exchanges liable for hacks and enforce stricter oversight.

Tickers mentioned: N/A

Sentiment: Neutral

Price impact: Neutral — The proposed measures are aimed at strengthening regulatory oversight rather than immediate market price shifts.

Market context: This development reflects South Korea’s broader push to tighten crypto regulations and align digital asset oversight with conventional financial standards.

Expanding Enforcement Tools to Crypto Markets

South Korea’s Financial Services Commission (FSC) is considering the introduction of a payment suspension system that would allow regulators to freeze cryptocurrency accounts suspected of manipulating markets. Currently, authorities face delays due to court warrants, which can give suspects time to conceal illicit funds. The new system would enable earlier intervention, similar to existing measures in the stock market, where authorities can prevent the cashing out of profits suspected of being generated through manipulation tactics such as front-running, wash trading, or placing large buy orders.

The FSC has highlighted that manipulation tactics in crypto markets can quickly generate large, unrealized gains that vanish once authorities intervene. Therefore, enabling preemptive account freezes aims to prevent these illicit profits from being realized or withdrawn, effectively curbing market abuse at an earlier stage.

In April 2025, amendments to South Korea’s Capital Markets Act took effect, empowering authorities to freeze accounts linked to unfair trading or illegal short sales. During a closed-door meeting in November, regulators discussed extending similar measures to crypto markets, including reviewing the first case of price manipulation under these amended rules. Given the ease of transferring assets into private wallets, regulators argue that crypto markets require even stronger tools to combat illicit activities.

Additionally, the regulatory landscape is shifting as authorities increase oversight beyond market manipulation to address other risks. The National Tax Service has asserted its authority to seize cold wallets during tax evasion investigations, signaling a tougher stance on offline storage. Furthermore, the Financial Services Commission has explored imposing bank-level liability on crypto exchanges, requiring platforms to compensate users for hack-related losses, even in the absence of proven negligence.

This series of measures indicates a move towards comprehensive regulation designed to safeguard market integrity and protect investors, aligning South Korea’s crypto oversight with traditional financial regulatory practices.

This article was originally published as South Korea Considers Freezing Unrealized Crypto Profits to Prevent Market Manipulation on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Institutions Accelerate Bitcoin Accumulation in Early 2026, Signaling Bullish Momentum

Bitcoin’s institutional buying activity has surged in the opening weeks of 2026, with major players acquiring more BTC daily than miners are adding to the supply. This pattern, historically linked to bullish price movements, suggests increasing confidence among institutional investors and could herald a significant rally ahead.

Key Takeaways

Institutions have been net buyers of Bitcoin for eight consecutive days, according to Capriole Investments data.

Since 2020, sustained net institutional buying has correlated with an average price increase of nearly 110%.

Bitcoin appears poised for a relief bounce after a three-month period of decline.

Recent inflows exceed mined supply by over 75%, indicating strong demand from corporate treasuries and ETFs.

Tickers mentioned: BTC

Sentiment: Bullish

Price impact: Positive. The heavy institutional buy-in is likely to support a continued price rise, rebuilding bullish momentum.

Strong Institutional Buying Outpaces Miners

Recent data from Capriole Investments illustrates that institutional purchasers are now absorbing over 75% more Bitcoin than miners are releasing into circulation. After a period of market uncertainty at the start of the year—characterized by a demand cooldown—large institutional investors are returning to the market with renewed vigor. Capriole’s Net Institutional Buying metric has recorded eight straight “green” days, indicating persistent positive buying pressure.

Bitcoin Net Institutional Buying chart. Source: Capriole Investments

On each of these days, institutional demand surpassed daily BTC supply from miners, with the total excess demand on Monday reaching 76%. According to Capriole founder Charles Edwards, this trend is generally followed by significant price increases, based on historical analysis. Since 2020, periods of sustained institutional purchasing have resulted in an average upside of 109% for Bitcoin, with previous instances of flipping positive investor sentiment sparking a 41% rally.

Price Target Near $100,000 Despite Recent Drawdown

Market analyst Timothy Peterson added an optimistic outlook, noting that Bitcoin’s current downturn—nearly 40% below October’s all-time high of $126,200—is likely to reverse. He referenced historical patterns where Bitcoin, after experiencing three consecutive months of decline, tends to rebound strongly. His research indicates that in such scenarios, the cryptocurrency has historically surpassed $100,000 within a month, with a success rate of 67%.

“What happens next? One month later, Bitcoin was positive 67% of the time. However, the 3 negative instances were all in 2018 and marked the end of that bear market.”

Following Monday’s opening on Wall Street, Bitcoin briefly retested $94,000, reaching its highest level since mid-November. These developments reinforce the ongoing narrative of a potential bullish resurgence fueled by robust institutional interest and favorable historical patterns.

This article was originally published as Institutional Bitcoin Purchases Surpass Mined Supply by 76% on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin Market Shows Signs of Bullish Momentum Amid Whales’ Accumulation

Recent analysis indicates a potentially bullish outlook for Bitcoin, driven by increased accumulation from large institutional-focused investors and profit-taking behavior among retail traders. On-chain data reveals that these dynamics could signal a shift towards further upward movement in the cryptocurrency market.

Key Takeaways

Whale and shark addresses collectively added over 56,000 BTC since mid-December, indicating strong accumulation trends.

Retail traders have been proactively taking profits, reflecting caution amid potential market traps.

Bitcoin price remains rangebound but approaches crucial resistance levels, suggesting potential for a breakout.

Market sentiment is leaning toward a higher probability of sustained capital growth in the near term.

Tickers mentioned: Bitcoin

Sentiment: Bullish

Price impact: Positive. The accumulation by whales and strategic profit-taking are fostering confidence in a potential upward movement.

Trading idea (Not Financial Advice): Hold. The current fundamentals and technical setup suggest a strong possibility of a breakout beyond key resistance levels, but caution remains advisable given the market’s consolidation.

Market context: The broader crypto ecosystem continues to experience cautious optimism amid macroeconomic uncertainties, with on-chain activity serving as a leading indicator of trend shifts.

Market Analysis and Price Outlook

Bitcoin has maintained a sideways trading pattern over the past six weeks, oscillating between approximately $87,000 and $94,000 since November. The asset recently touched a high of $94,800 on Coinbase in late trading, marking a seven-week peak. This movement signals a potential breakout, especially as Bitcoin approaches the upper bounds of its recent trading range.

Expert analyst James Check notes that Bitcoin’s rally to $94,000 is supported by a significant redistribution of supply. The “top-heavy” supply has decreased sharply from 67% to 47%, which indicates a healthy rebalancing. Additionally, profit-taking has subsided considerably, and futures markets are showing signs of a short-squeeze. Despite these bullish signals, overall leverage in the market remains low, suggesting room for further upward movement.

Bitcoin is moving away from support and towards longer-term resistance. Source: James Check

Monitoring Key Resistance and Support Levels

Market participants view this phase as a bullish consolidation. Technical resistance is seen around $95,000 to $100,000, with notable interest in call options at the $100,000 strike for January expiry. Conversely, immediate support levels are identified between $88,000 and $90,000; a break below this range could trigger a deeper correction.

Overall, Bitcoin’s current technical posture and on-chain activity suggest an optimistic outlook, with increased likelihood of a breakout that could propel prices higher in the coming weeks.

This article was originally published as Whale Accumulation Sparks Bullish Bitcoin Breakout—What It Means for Investors on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Ethereum Validator Exit Queue Nears Zero, Signaling Reduced Selling Pressure

The Ethereum network is experiencing a significant shift in validator participation, with the exit queue falling back toward zero for the first time since July of last year. Analysts suggest this development could ease selling pressure and reflect a growing confidence among validators to remain committed to the network.

Data from Beaconcha.in indicates that the current exit queue contains just 32 Ether, with an average wait time of around one minute. This sharply contrasts with its peak of 2.67 million ETH in mid-September, representing a 99.9% reduction. Simultaneously, the entry queue has surged to 1.3 million ETH — its highest point since mid-November — highlighting an increased interest in staking Ether.

Asymetrix’s CTO Rostyk described the situation, stating, “The validator exit queue is essentially empty. No one wants to sell their staked ETH right now.”

Further, Tevis, founder of the AlphaLedger trading platform, pointed out that “ETH exchange reserves are at their lowest levels in ten years. Selling pressure is diminishing, and the influx of new validators staking ETH for yield, especially driven by entities like BitMine and ETF players, is outpacing exits.”

In the context of network dynamics, unstaking Ether often signals validators’ intentions to liquidate holdings, pursue different yield opportunities, or rebalance portfolios. Conversely, staking ETH is viewed as a strong sign of confidence in Ethereum’s future, reflecting long-term commitment.

The Ethereum validator exit queue is nearly empty. Source: Validator Queue

No Backlog of Validators Waiting to Exit

The validator exit queue primarily governs how quickly validators can fully withdraw from network consensus. This queue acts as a safeguard against mass exits that could destabilize the network, ensuring that validators remain active by earning rewards while risking penalties during the waiting period.

Unlike the withdrawal queue, which handles partial withdrawals of accumulated rewards, the exit queue pertains to full validator departures. The current near-zero exit queue suggests minimal unstaking pressure, enabling prompt processing of new exit requests if needed.

In December, experts predicted that the exit queue could approach zero, and recent data confirms that trend. A zero queue status indicates fewer validators seeking to exit en masse, strengthening network stability and confidence.

BitMine Accelerates ETH Staking

Leading the charge, BitMine, the world’s largest Ether treasury, has ramped up its staking activities in recent weeks. Since initiating staking on December 26, the company added an additional 82,560 ETH to the entry queue on January 3, bringing its total staked ETH to approximately 659,219 — valued at about $2.1 billion at current prices.

BitMine now holds over 4.1 million ETH, accounting for roughly 3.4% of the total supply and valued at approximately $13 billion. The firm’s aggressive staking strategy underscores institutional confidence in Ethereum’s staking ecosystem, amid a broader trend of validators choosing to remain committed.

This article was originally published as Ethereum Validator Exit Queue Hits Zero as ETH Price Soars on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

US Companies’ Entry into Venezuela Could Lower Energy Costs for Bitcoin Miners

Recent developments indicate that the entry of US firms into Venezuela’s oil sector might lead to a significant reduction in electricity prices, potentially boosting profitability for Bitcoin miners. Analysts at crypto exchange Bitfinex suggest that increased access to Venezuela’s vast oil reserves, combined with cheaper energy, could catalyze a new wave of mining expansion across regions capable of securing long-term power contracts.

Following the US seizure of Venezuelan oil tankers in December, the strategic move to commence production from Venezuela’s estimated 303 billion barrels of oil gained momentum after the recent capture of President Nicolás Maduro. While Chevron remains the sole major US oil company operational in the country, President Donald Trump has been advocating for other large firms to resume or initiate operations, signaling a shift that could impact global energy markets.

The potential influx of Venezuelan crude oil is expected to have immediate effects, not only on oil prices but also on the broader cryptocurrency landscape. The analysts emphasize that even a fraction of Venezuela’s reserves being tapped could significantly influence energy prices, which in turn would benefit Bitcoin miners battling elevated electricity costs and declining profitability. This comes amid a backdrop of Bitcoin’s price dropping approximately 25% from its historic peak, with rising mining difficulty and soaring electricity costs constraining margins.

Long-Term Outlook and Challenges

However, experts caution that substantial increases in Venezuelan oil output may take years, potentially a decade, to materialize. The pace of recovery hinges on the US’s handling of Venezuela’s complex political transition and ongoing sanctions. According to Matt Mena, crypto research strategist at 21Shares, it could take over ten years and more than $100 billion in infrastructure investments to restore Venezuela to its former status as a leading oil producer.

Historically, Venezuela once produced around 3.5 million barrels daily in the 1970s—roughly 7% of global output—but current figures have dwindled to approximately one million barrels per day, representing about 1% of the world’s crude supply. The decline is closely tied to economic mismanagement and political repression under Nicolás Maduro’s regime, which has also caused hyperinflation and severe hardship for the population.

Following the US intervention, crude oil prices dropped to around $58 per barrel, down from about $60 in December, offering a modest reprieve for Bitcoin miners who rely heavily on oil-based electricity. Meanwhile, the broader crypto market’s movements are increasingly influenced by macroeconomic factors, including risk appetite, market volatility, and cross-asset trading strategies, rather than energy fundamentals alone.

This article was originally published as How Venezuelan Oil Could Slash Bitcoin Mining Costs – Bitfinex Insights on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.