“Bitcoin and major tokens weakened Sunday as markets positioned ahead of the Federal Reserve’s next rate decision and a heavy slate of Magnificent Seven earnings.”, — write: www.coindesk.com
BTC traded around $87,800 in US afternoon hours, down roughly 2% over 24 hours, according to CoinDesk data. Ether fell towards $2,880, while solana, XRP and cardano each posted losses of between 3% and 5% on the day. Most major tokens have remained sharply down over the past seven days, reflecting the fragile sentiment across the market.
Bitcoin price action (CoinDesk)
The move caused $224 million in liquidations on bullish bets in the last 24 hours, led by $68 million on bitcoin-tracked futures and $45 million on ether-based futures, according to CoinGlass data.
Weekend moves are often driven less by fresh information and more by positioning adjustments, particularly after periods of heightened volatility earlier in the week.
Traders are entering the new week on heightened alert for possible intervention in the Japanese yen after Prime Minister Sanae Takaichi warned against “abnormal” market moves, comments that followed a sudden reversal in the yen late Friday.
The currency’s sharp rally raised caution across Asian trading desks, even as officials stopped short of confirming any action, per Bloomberg.
The shutdown tradeElsewhere, political risk in the US added to an already unsettled backdrop.
Senate Democratic leader Chuck Schumer said his party would block a major spending package unless funding for the Department of Homeland Security is removed, increasing the risk of a partial government shutdown.
While such standoffs are familiar, they can tighten near-term liquidity conditions and weigh on sentiment across risk assets, particularly during periods of elevated positioning.
Previously, heading into a potential government shutdown, bitcoin has historically seen selling pressure, followed by a rally.
Polymarket odds on US government shutdown (Polymarket)
Currently, Polymarket traders are putting a 76% chance on a US government shutdown by the end of this month.
Read more: Previous US Government Shutdown Aligned With Bitcoin’s Bear Market Bottom
Attention now turns to the week ahead, with investors also looking to a heavy earnings week that includes results from several megacap technology firms, including Microsoft, Meta Platforms, Tesla, and Apple, among the “Magnificent 7” tech giants.
Traders will be watching for any clues on how these companies’ earnings trends are shaping artificial intelligence (AI)-related results. And the market will likely move based on their comments for the AI industry outlook. Bitcoin, which is now trading like a risk asset, may also move with these results and comments.
Meanwhile, the Federal Reserve’s first rate decision of this year will also be widely watched by the traders. While the Fed is expected to hold rates steady at its upcoming meeting, the market will be closely watching what Chairman Jerome Powell says during his post-meeting press conference, which could move bitcoin and other asset classes.
Read more: Here’s what the Fed’s highly anticipated rate decision this week means for bitcoin and the dollar
UPDATE (Jan. 25, 6:13 PM UTC): Updates throughout with data and additional context.
KuCoin captured a record share of centralized exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the broader crypto market.
- KuCoin recorded over $1.25 trillion in total trading volume in 2025equivalent to an average of roughly $114 billion per monthmarking its strongest year on record.
- This performance translated into an all-time high share of centralized exchange volumeas KuCoin’s activity expanded faster than aggregate CEX volumeswhich slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly spliteach exceeding $500 billion for the year, signaling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activityreinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activityindicating structurally higher user engagement rather than short-lived volume spikes.
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The bitcoin treasury firm is using perpetual preferreds to retire convertibles, offering a potential framework for managing long-dated leverage.
- Strive upsized its SATA follow on offering beyond $150 million, pricing the perpetual preferred at $90.
- The structure offers a blueprint for replacing fixed maturity convertibles with perpetual equity capital that removes refinancing risk.
- Strategy has a $3 billion convertible tranche due in June 2028 with a $672.40 conversion price, which could be addressed using a similar preferred equity approach.
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