The last full week of January ended ugly for crypto. Liquidations piled up, leverage came out of the system fast, more than $2.5 billion in positions were flushed, and total market value slipped below $2.8 trillion. Bitcoin briefly lost the $76,000 handle. Ethereum shed over 20%. Most large-cap altcoins followed.
The market was affected by multiple factors: economic concerns, international developments, money exiting ETFs, and large investors selling simultaneously. U.S. regulators also indicated they might collaborate more closely, adding to uncertainty.
Below are the stories that defined the week.
Bitcoin Slides Below $76K as Macro Fears and ETF Outflows Intensify
Bitcoin dropped nearly 8% in a single day, sliding to around $75,800, and finished the week down more than 13%. U.S. spot ETFs continued to bleed capital, futures interest thinned out, and a clean technical break removed nearby support. Selling pressure didn’t fade quickly, and buyers stayed cautious.
Binance Says October 10 Flash Crash Was Macro-Driven, Not Exchange Failure
Binance released its post-mortem on the October 10, 2025 crash, rejecting claims that platform issues caused the wipeout. According to the exchange, the collapse stemmed from tariff-related macro shock, extreme leverage, and thin liquidity. System glitches occurred, but Binance says they came after most liquidations had already happened.
U.S. Sanctions Two UK Crypto Exchanges Over Iran-Linked Activity
The U.S. Treasury sanctioned UK-based exchanges Zedcex and Zedxion, accusing them of facilitating transactions tied to Iran’s Revolutionary Guard. It’s the first time crypto exchanges have been designated specifically for Iranian-linked activity. Seven Tron wallets were also flagged, raising compliance stakes for global platforms.
Chainlink Holds Support as Revenue and Reserves Grow
LINK fell roughly 7%, tracking the broader market, but underlying activity didn’t stall. Trading volume doubled, the Chainlink Reserve added more than 99,000 LINK, and the network generated $5.7 million in revenue over 30 days. Price stayed pinned near support as traders waited for direction.
Binance to Move $1B SAFU Reserves into Bitcoin
Binance said it will convert about $1 billion of its SAFU protection fund from stablecoins into Bitcoin over the next month. Once complete, the fund will be fully BTC-backed. Binance said it will top up the fund if its value drops, positioning Bitcoin as the core reserve asset.
Gold Outpaces Bitcoin in 2026 as Investors Flee to Safety
Gold has quietly increased this year, nearly doubling to around $5,600 as investors moved away from risk. Central banks continued buying, while cryptocurrencies stayed quiet due to leverage exhaustion and fears related to the 2025 liquidation cycle. Bitcoin’s growth was slow despite long-term positive outlooks.
SEC and CFTC Launch “Project Crypto” to Align U.S. Digital Asset Regulation
The SEC and CFTC started Project Crypto together to better define and classify digital assets. They want clearer rules for securities, commodities, and other cryptocurrencies. Enforcement will keep going, but future rules will be coordinated instead of separate.
Bybit Launches MyBank to Offer Built-In Fiat Accounts
Bybit announced MyBank, a new service that allows users to hold fiat currencies directly on the exchange. Accounts will include personal IBANs and support up to 18 currencies. Licensed banking partners will handle custody, with a rollout expected to begin in February, pending approvals.
Bitwise Takes First Step Toward Potential Uniswap ETF
Bitwise registered a Uniswap ETF trust in Delaware, an early procedural move that could support a future ETF tied to UNI. There’s no SEC filing yet and no launch timeline, but the registration follows the closure of the SEC’s investigation into Uniswap Labs.
Vitalik Outlines Three-Level Framework for Blockchain Scaling
Vitalik Buterin published a new framework for scaling blockchains, arguing that computation should scale first, data second, and state last. He warned that uncontrolled state growth risks centralization, reinforcing Ethereum’s rollup-first roadmap and emphasis on offloading execution.
Japan Plans to Approve Bitcoin ETFs by 2028
Japan is preparing to lift its ban on spot crypto ETFs, with regulators targeting 2028 for approval. Proposed changes would classify cryptocurrencies as eligible investment assets, enabling Bitcoin ETFs on the Tokyo Stock Exchange. Lawmakers are also reviewing crypto tax cuts.
