Market Movement:

  • Ethereum and Solana are expected to follow bullish trends if the CLARITY Act passes, potentially reaching new all-time highs in 2026.

Key Events:

  • Bhutan pledges up to 10,000 BTC (~$1 billion) for Gelephu Mindfulness City, with no plans to sell but to use collateralization and long-term holding strategies.
  • Tether co-led an $8 million investment in Speed, a Lightning Network payments firm processing $1.5 billion annually, to expand USDT usage via Bitcoin Lightning.

Trading Signals:

  • Tether’s investment in Speed signals increased institutional interest in stablecoin infrastructure, potentially boosting USDT liquidity on Lightning Network.
  • Bitcoin’s price action remains capped below critical resistance, with monthly charts showing a pattern similar to 2022 bottoming, suggesting cautious accumulation.
  • Significant treasury activity includes Bhutan’s $1 billion Bitcoin pledge and institutional investments, indicating strong long-term confidence.

Narrative Shifts:

  • Growing focus on blockchain security with Solana’s deployment of post-quantum signatures, reflecting increased emphasis on quantum resistance.
  • Market narrative shifting towards the view that quantum computing will “harden” Bitcoin, with Saylor predicting a 2026 bull run despite quantum threats.

Risk Alerts:

  • Quantum computing threats remain a concern, with estimates that 30% of circulating BTC could face theft risk when “Q-Day” arrives, though timeline remains uncertain.
  • Market volatility persists with Bitcoin consolidating below key resistance, and regulatory risks associated with passing legislation like the CLARITY Act.
  • Potential for market disruption from technological or regulatory shocks, especially related to quantum security and stablecoin regulation.

Opportunities:

  • Long-term holding strategies for Bitcoin and on-chain gold present growth potential, with Bitcoin predicted to reach new highs above $126,080 in 2026.
  • Upgrades like Solana’s quantum resistance and Saylor’s bullish outlook suggest technological and fundamental strengthening, supporting future price appreciation.

Flows & Positioning

Bhutan Commits $1 Billion in Bitcoin for Mindfulness City Development

Bhutan has pledged up to 10,000 BTC, valued at approximately $1 billion, to fund the development of Gelephu Mindfulness City. This strategic move positions Bhutan as a significant player in the crypto landscape, as the kingdom aims to utilize its Bitcoin reserves without liquidating them, focusing instead on collateralization and risk-managed yield strategies. King Jigme Khesar Namgyel Wangchuck emphasized that this initiative will allow every Bhutanese citizen to become a custodian and beneficiary of the project. The commitment underscores Bhutan's innovative approach to integrating cryptocurrency into national development plans, potentially setting a precedent for other nations.

Tether's $8 Million Investment in Lightning Network Startup

Tether has co-led an $8 million funding round for Speed, a payments firm utilizing the Bitcoin Lightning Network. This investment aims to enhance the use of Tether's USDT stablecoin for mainstream payments, highlighting Tether's ongoing strategy to expand its influence in the crypto payment ecosystem. Speed processes over $1.5 billion annually, indicating strong demand for its services. The partnership is expected to facilitate instant global settlements, showcasing the growing integration of stablecoins in everyday transactions and the potential for increased adoption of the Lightning Network.

Bitcoin ETFs Experience Significant Outflows Amid Market Volatility

Bitcoin and Ethereum ETFs recorded their largest daily net outflows in two weeks, shedding a combined $582 million. This trend reflects a broader institutional response to market volatility, as investors trim exposure amid uncertain macroeconomic conditions. Bitcoin ETFs alone faced a $357.6 million peak daily outflow, while Ethereum ETFs saw a $224 million redemption. This behavior suggests that institutional investors are prioritizing liquidity and risk management as they navigate the current market landscape.

Market Sentiment and Price Action: Bitcoin Holds Above $85,000

Bitcoin's price has recently fluctuated around the critical $85,000 level, with a slight recovery to $87,000 amid a backdrop of extreme fear in the market. The Fear and Greed Index has dropped to 11, indicating heightened anxiety among investors, which often correlates with potential buying opportunities. Despite recent volatility, long-term holders are providing support, preventing a deeper correction. Analysts suggest that Bitcoin could consolidate between $81,000 and $102,000 until liquidity improves, with a potential breakout towards $90,000 if bullish momentum continues.

Charles Schwab Expands Crypto Offerings

Charles Schwab has taken a significant step in integrating cryptocurrency into its trading platform by adding Solana-linked futures. This move allows clients to gain exposure to digital assets without the need for direct ownership of cryptocurrencies, thereby broadening the scope of regulated crypto derivatives available to investors. The introduction of these futures indicates a growing acceptance of digital assets within mainstream financial services, potentially attracting a wider range of investors to the crypto market. The addition of Solana futures is particularly noteworthy as it reflects a strategic shift towards leveraging established blockchain technologies within traditional finance.

This could lead to increased trading volumes and user engagement on Schwab's platform, as clients seek to capitalize on the volatility and growth potential of cryptocurrencies. As traditional financial institutions like Schwab embrace crypto derivatives, it may pave the way for further innovations and partnerships in the ecosystem, enhancing overall market liquidity and accessibility.

Corporate & Capital Markets

Tether Leads $8M Funding for Lightning Startup Focused on Stablecoins

Speed, which leverages the Bitcoin Lightning Network to facilitate USDT transfers, has secured $8 million from Tether and Ego Death Capital.

Waymo in Talks to Raise Funds at $100bn Valuation

Waymo in talks to raise funds at $100bn valuation.

RedotPay Raises $107M Series B Led by Goodwater for Stablecoin Payments

The company said the funds will support acquisitions, licensing efforts and expanded hiring as it enters new markets.

CloudKitchens Delays Mideast Unit’s IPO

CloudKitchens, a startup run by Travis Kalanick, has delayed plans to list its Middle Eastern business, according to people familiar with the matter. The ghost kitchen company, which is backed by Saudi Arabia’s sovereign wealth fund, is instead planning to focus on options including a private placement.

On-Chain & Network

MetaMask Expands to Bitcoin, Enhancing Cross-Chain Capabilities

MetaMask has launched native Bitcoin integration, allowing its 30 million active users to manage Bitcoin alongside Ethereum and other supported blockchains. This integration is a significant milestone for the growing Bitcoin DeFi ecosystem, which has traditionally been dominated by Ethereum's smart contracting capabilities. The integration was facilitated by the Bitcoin Development Kit, an open-source library aimed at simplifying Bitcoin app development, indicating a strategic move towards enhancing cross-chain collaboration and interoperability within the crypto space.

Solana Implements Quantum-Resistant Digital Signatures

The Solana Foundation has initiated a quantum-resistant upgrade by deploying post-quantum digital signatures on a testnet. This proactive measure addresses the potential future threats posed by quantum computing, following similar initiatives by Ethereum and Cardano. The upgrade reflects Solana's commitment to enhancing its security infrastructure and preparing for emerging technological challenges in the blockchain space.

Security & Incidents

FTC Compels Nomad Operator to Repay Users After $186M Crypto Bridge Hack in 2022

The FTC said Illusory Systems’ Nomad crypto bridge lost $186 million after hackers exploited a poorly tested software update. Regulators alleged the company marketed itself as “security-first” while failing to follow basic coding and incident-response practices. A proposed settlement would require Illusory to return recovered funds, overhaul its security program, and undergo ongoing audits.

Elizabeth Warren Presses DOJ, Treasury on Potential Probe of DeFi Exchanges

US Senator Elizabeth Warren is seeking answers from federal law enforcement and financial authorities over whether decentralized cryptocurrency exchanges are under active investigation. Warren is asking whether US authorities are investigating DeFi exchanges over national security risks. She warns DeFi could enable illicit finance as crypto legislation stalls in Congress.

In a letter sent Monday to Treasury Secretary Scott Bessent and US Attorney General Pam Bondi, the Massachusetts Democrat asked whether their departments were “investigating significant national security risks posed by decentralized cryptocurrency exchanges like PancakeSwap.” Warren requested a response by Jan. 12, framing the inquiry as part of broader congressional debates over crypto regulation.

Warren said the public deserves clarity as Congress weighs crypto market structure legislation, including measures aimed at preventing illicit finance. She pointed to concerns raised by national security experts and the crypto industry itself, warning that decentralized finance could be exploited by terrorists, criminals and sanctioned states if left unchecked.

The senator also questioned whether political considerations were influencing how crypto-related cases are enforced, citing what she described as selective action under the Trump administration. Her letter referenced reports linking crypto activity to North Korea’s money laundering efforts and flagged claims that enforcement priorities may not be applied evenly across the sector.

Warren’s intervention comes as legislative momentum around crypto regulation slows in Washington.

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