Today's Cryptocurrency News (January 21) | BTC drops below $89,000; Trump’s crypto advisor pressures Congress

This article summarizes cryptocurrency news on January 21, 2026, focusing on the latest Bitcoin updates, Ethereum upgrades, Dogecoin trends, real-time crypto prices, and price forecasts. Major Web3 events today include:

1. Solana stablecoin trading volume surpasses $1 trillion, USDC-driven on-chain payments enter high-speed era

Solana’s total stablecoin transaction volume processed in 2025 officially exceeded $1 trillion, creating a rare USD settlement scale in the blockchain space. This achievement marks Solana’s shift from a primarily Meme and transaction-focused public chain to a financial infrastructure oriented toward real-world payments and settlements. The strategic positioning of the Solana stablecoin network is undergoing a clear transformation.

Data shows that this growth was mainly driven by USDC. In 2025, the Solana network issued over $8 billion USDC, doubling the on-chain stablecoin market cap. The significant expansion of liquidity has made Solana an important on-chain USD circulation channel, enhancing the feasibility of cross-border transfers, on-chain payments, and settlements. For enterprises and applications seeking real-time clearing via stablecoins, Solana is becoming a top choice.

At the technical level, this is key to attracting capital inflows. Solana offers sub-second confirmation times and near-zero transaction fees, and processes large volumes of transactions simultaneously through parallel execution architecture, avoiding congestion and fee spikes under high load typical of traditional blockchains. These performance features make Solana suitable for high-frequency payments, merchant settlements, and subscription-based financial services, enabling it to compete with traditional payment networks.

To promote practical deployment, the Solana team has continuously improved payment-oriented developer tools in 2025, providing comprehensive documentation covering stablecoin transfers, automated collections, enterprise settlements, and cross-border payments. Additionally, multiple third-party projects have launched SDKs and APIs, allowing merchants, applications, and financial institutions to integrate with the Solana network more quickly and build their own blockchain payment systems.

Although recent stablecoin TVL has declined, on-chain transaction activity remains high. The market tends to view this as a phase of capital adjustment rather than demand contraction. The sustained increase in payment frequency and application deployment indicates that Solana’s on-chain USD settlement functionality is maturing rapidly.

With the expanding circulation of USDC, continuous improvement of payment tools, and a growing developer ecosystem, Solana is moving toward becoming a global digital USD clearing network. The $1 trillion stablecoin transaction volume is no longer just a milestone but an important signal that Solana is entering the mainstream financial infrastructure track.

2. BTC drops below $89,000, Bitcoin and Ethereum ETFs face $713 million sell pressure

Influenced by ongoing macroeconomic and geopolitical uncertainties, US spot Bitcoin ETFs and Ethereum ETFs experienced a combined net outflow of about $713 million this Tuesday, marking the most significant institutional de-risking signal since 2026. Data shows that on that day, Bitcoin-related funds withdrew approximately $483 million, with multiple products under pressure, reflecting institutional funds quickly reducing exposure amid market volatility. The previous trading day also saw similar selling pressure, with Bitcoin ETF net outflows approaching $400 million, indicating this was not an isolated event.

For Ethereum ETFs, net outflows of about $230 million on Tuesday ended a five-day streak of fund inflows. Some large asset management products saw significant reductions, directly weakening buy support in the spot market. Against this backdrop, Bitcoin’s price once fell below $89,000, contrasting sharply with the near $97,000 high a week earlier; Ethereum also weakened, falling below $3,000, increasing market caution.

Several researchers link this round of capital outflows to international tensions. The trade friction between the US and EU over Greenland remains unresolved, and global bond market volatility, along with Japanese investors’ bond sell-offs, is believed to have weakened overall liquidity, further transmitting to equities and crypto assets. Peter Chung of Presto Research notes that such cross-market pressures often amplify downside risks in the short term.

However, some believe this is more of a phase adjustment rather than a trend reversal. Jeff Mei suggests that Trump’s tariff rhetoric, though impactful, historically tends to ease under market pressure. Nick Ruck of LVRG states that the current capital outflow is mainly a temporary de-leveraging driven by geopolitical factors, and institutional views on the long-term value of crypto assets remain unchanged.

Notably, on the same trading day, XRP-related ETFs saw net outflows exceeding $50 million, while Solana-related products recorded about $3 million in net inflows, indicating more refined capital reallocation. As the macro environment in 2026 becomes clearer, markets generally expect these fluctuations to lay the groundwork for subsequent capital reflows.

3. Vitalik Buterin returns to decentralized social media, Ethereum co-founder criticizes “corposlop” platform

Ethereum co-founder Vitalik Buterin publicly announced on X that he will fully return to decentralized social networks in 2026, viewing this as an important step to address the structural failures of current mainstream social platforms. He pointed out that algorithm-driven, user-stickiness-centered centralized platforms distort information dissemination, hindering society’s ability to form rational consensus.

Buterin believes a healthier public communication system should prioritize high-quality content and serve users’ long-term interests, rather than being dominated by short-term clickbait and emotional triggers. He emphasizes that the greatest value of decentralization lies in introducing genuine competition: when multiple clients are built on the same shared data layer, no single platform or algorithm can monopolize user attention.

He revealed that since early 2026, he has been using Firefly for almost all reading and writing, a tool that connects to X, Lens, Farcaster, and Bluesky simultaneously. This cross-protocol experience allows him to see how decentralized tools coexist with centralized platforms and gradually direct traffic toward more open social infrastructure.

Regarding crypto-native social projects, Buterin sharply criticizes the “token万能论” (token万能 theory). He states that many teams mistakenly believe that introducing speculative tokens equals innovation, but in reality, it often amplifies existing social inequalities. Token price increases reward those with influence rather than content quality, ultimately leading to failure when bubbles burst. He outright calls this pattern not an evolution of the information market but more like “corposlop.”

For the future decentralized social ecosystem, Buterin is optimistic about the long-term investment by the Aave team in Lens and says the new team taking over the project has deep experience in crypto social fields. He plans to speak more frequently on Lens this year and encourages users to explore platforms like Farcaster to break free from a single global information sphere, building a more diverse and rational online interaction environment.

4. Pi Network upgrades to EU compliance via MiCA and AI KYC, Pi Coin enters new compliance phase in Europe

Pi Network posted a new PDF technical document on its official site minepi.com, showing it has met key compliance requirements of the EU’s Markets in Crypto-Assets Regulation (MiCA). This progress indicates Pi is paving the way for legal operation within the EU framework, potentially enabling compliant circulation of Pi Coin in Europe. Previously, due to MiCA’s regulatory restrictions, Pi faced difficulties conducting related business in most European countries, but this situation is now changing.

Recent developments show Pi has begun to appear in Europe as a compliant financial instrument, such as the Valour Pi ETP listed on regulated markets in Sweden, seen as Pi’s first step into the European financial system. The public release of the MiCA document further signals Pi Network’s intention to obtain legal status across the EU. Once achieved, platforms launching Pi Coin will no longer face compliance barriers, expanding Pi’s market coverage.

Meanwhile, Pi Network is advancing AI-driven KYC upgrades. The new AI verification system can more efficiently review user identities, reducing manual intervention and significantly shortening validation times. Many users have already completed migration to the mainnet via this system, with the second phase ongoing. Faster KYC processing means more real users can unlock and use their Pi assets, directly boosting network activity and on-chain transaction volume.

On the infrastructure side, some community members have found that Pi nodes based on Stellar technology are processing ledgers and transactions in real time on Linux servers, demonstrating Pi Network’s enterprise-level capability. This infrastructure not only supports higher throughput but also ensures long-term stable operation.

With MiCA compliance, AI KYC, and a robust node network in place, Pi Network is transforming from an early mobile mining project into a compliant blockchain ecosystem for global users. For investors and users interested in Pi Coin’s future, 2026 may be a pivotal year for its mainstream entry.

5. MegaETH mainnet stress test reaches 35,000 TPS, EVM high-performance blockchain enters practical phase

Real-time EVM-compatible blockchain MegaETH announced the launch of its mainnet stress test, aiming to process approximately 11 billion transactions over a continuous 7-day high-load environment, maintaining a stable TPS between 15,000 and 35,000. This test serves as both technical validation and a public release of the mainnet, allowing latency-sensitive applications to operate in a real environment.

According to data disclosed by Growthepie on X, MegaETH previously reached a peak of nearly 47,000 TPS in testing, laying a foundation for this ongoing stress test. The project hopes to demonstrate that MegaETH can sustain high throughput and low latency under concurrent user and application loads, directly competing with high-performance public chains like Solana.

Messari’s research reports that MegaETH’s testnet block time has reached 10 milliseconds, significantly faster than current mainstream blockchains. This architecture enables on-chain interactions with Web2-like response speeds, making high-frequency trading, blockchain games, and real-time applications feasible. However, Messari also notes that MegaETH uses a centralized ordering mechanism to achieve performance, which still requires market validation regarding censorship resistance and decentralization.

During the stress test, users can directly experience applications like Stomp.gg, Smasher.fun, and Crossy Fluffle, while backend systems push ETH transfers and v3 AMM interactions via Kumbaya.xyz to simulate real on-chain load. After the test, the public mainnet will fully open, with a batch of DeFi and consumer applications supported by the native stablecoin USDm going live.

Funding-wise, Messari reports that MegaETH raised about $50 million through MEGA token sales in October 2025, with the round oversubscribed within minutes, bringing total grassroots funding close to $75 million. As real-world data from the mainnet becomes available, whether MegaETH can secure a position in the EVM high-performance track will be a key focus in 2026.

6. Pump.fun launches $3 million Pump Fund, can PUMP escape Meme coin cycle?

Meme coin issuance platform Pump.fun announced the launch of a $3 million Pump Fund, marking a shift from a single Meme coin trading model toward a more sustainable Web3 startup ecosystem. The fund will be officially launched through an “open build” hackathon, with community influence rather than traditional VC evaluation as the core criterion for funding allocation.

According to official disclosures, teams participating in Pump Fund do not need to pitch to judges but must issue tokens, retain part of the supply, and continuously showcase product progress publicly. Funds will flow to projects recognized by social and real user communities, with the core idea that the market itself decides which early teams deserve capital support. This mechanism is seen as an alternative to traditional VC processes and provides tools for Pump.fun to explore longer project lifecycles.

This transformation coincides with a clear recovery in platform revenue. As Meme coin markets experienced a brief rebound in early 2026, Pump.fun’s fee income also recovered, reaching about $7.6 million in the past week, returning to levels seen since September 2025. In previous weeks, weekly revenue fluctuated between $4 million and $6 million, with 30-day rolling income rising from $21.6 million to $24.8 million, indicating a phase of activity revival.

Token-wise, PUMP surged in early January but has since entered consolidation, with technical indicators showing momentum slowing and prices mostly sideways. Since PUMP’s value is highly correlated with Meme coin hype and platform activity, whether Pump Fund can generate more stable, sustainable demand remains to be seen.

From a longer-term perspective, Pump.fun’s use of a $3 million startup fund to enter “community-driven investment” signifies a move away from relying solely on short-term speculative flows toward cultivating a sustainable project ecosystem. If successful, PUMP’s valuation logic could shift from pure Meme narrative to a more fundamental platform token story, becoming an important variable to watch in 2026 crypto markets.

7. Satoshi’s Bitcoin holdings worth nearly $100 billion, long-term faith persists despite crash

Amid global macro shocks and market sell-offs, Bitcoin’s price retreated to about $89,490, down over 3% in 24 hours. This volatility is closely linked to Trump’s threats of new tariffs on several European countries, which quickly increased safe-haven sentiment, with funds flowing temporarily into gold and traditional assets. However, on-chain data shows that long-term Bitcoin holders’ confidence remains intact, notably exemplified by Satoshi’s holdings.

Tracking by Arkham Intelligence indicates that Satoshi Nakamoto has not moved any of his Bitcoin holdings since mining the first blocks in 2009, a 17-year record. As Bitcoin evolved from zero value to nearly $90,000, Satoshi’s approximately 1,096,358 BTC is now worth close to $100 billion, representing about 5.5% of total supply. This long-term dormant large holding is seen by the market as the ultimate endorsement of Bitcoin’s long-term value.

In contrast, recent institutional selling is evident. Over the past 24 hours, about 64,000 BTC were transferred to the market, increasing short-term supply pressure. This coordinated action appears more like strategic price suppression rather than panic selling, often used to trigger stop-losses and clear high-leverage positions.

Nevertheless, the distribution remains highly concentrated among long-term holders. Besides Satoshi, major holders include US firms BlackRock, Strategy, and the US government. Meanwhile, active addresses have been declining since October 2025’s peak, indicating reduced retail participation, but on-chain transaction volume has rebounded, suggesting large holders are repositioning at low levels.

The contrast between “Satoshi’s Bitcoin stockpile” and “institutional and on-chain signals” shows that short-term price volatility is unlikely to shake the long-term value logic. Bitcoin’s rise from worthlessness to a trillion-dollar wealth creator demonstrates its cross-cycle appeal. For long-term investors, current turbulence is more like a redistribution of chips than a loss of faith.

8. Bitcoin crash warning escalates: Tom Lee predicts “painful decline” in 2026 with year-end rebound window

As crypto market selling pressure intensifies, Bitcoin has fallen from nearly $100,000 to below $90,000, with most altcoins weakening simultaneously. Tom Lee of Bitmine and Fundstrat warns that this correction may be just the prelude to a larger downward cycle in 2026, but if Bitcoin revisits its all-time high within the year, a structural rebound could occur by year-end.

In Wilfred Frost’s latest podcast interview, Tom Lee pointed out that the current environment closely resembles 2025, with high leverage liquidations, risk assets under pressure, and macro uncertainties stacking up, likely causing most of 2026 to be in a “painful decline” zone. However, he also emphasized that if Bitcoin can break through previous highs, it would mean the market has fully digested last October’s deleveraging shock, which saw rapid liquidation of large leverage positions and caused intense turbulence in the crypto industry.

Price range estimates from Fundstrat previously suggested Bitcoin could retest the $60,000–$65,000 zone, seen as a deep correction within a bull market rather than a long-term trend reversal. Tom Lee believes such declines often occur before the next rally, offering long-term investors a chance to reposition.

The macro factors behind this crypto crash are also significant. The US Supreme Court’s failure to rule on Trump’s tariffs has triggered a repricing of trade and policy uncertainties; additionally, escalating tariff tensions between the US and EU add further pressure on risk assets. Trump has recently signaled some easing, but short-term doubts remain.

Furthermore, the Bank of Japan hinted at further rate hikes in 2026 to combat yen depreciation and inflation risks, tightening global liquidity expectations and exerting downward pressure on high-volatility assets like Bitcoin. Despite short-term volatility, some funds are repositioning at lows, betting on a rebound by year-end. For investors watching Bitcoin forecasts and market cycles, 2026 is likely a “dip before rise” transition year.

9. Bessent manipulates Japanese bond market storm: why is 2026 the year global markets shift risk to Japan?

US Treasury Secretary Scott Bessent, adopting a hedge fund veteran’s approach, is reshaping the 2026 global financial narrative. Amid Japan’s historic bond sell-off, he quickly shifted the focus of global market turmoil onto Japan’s bond market, diverting attention from Trump’s confrontation with European countries over Greenland.

In an interview on January 20, Bessent stated that Japanese government bonds (JGBs) have experienced “six sigma” extreme volatility, equivalent to a 50 basis point move in the US 10-year yield in a single day. Currently, Japan’s 40-year JGB yield has surpassed 4%, and the 10-year yield hit levels not seen since the 1990s, with Japan’s debt-to-GDP ratio at 200%, making Tokyo a key variable in global risk sentiment.

Following his public pressure, Japanese Finance Minister Satsuki Katayama quickly promised at Davos to stabilize debt structure through fiscal adjustments and strategic support. Markets responded with a sharp decline in long-term Japanese bond yields, indicating Tokyo has been incorporated into the US-led risk management framework.

The deeper logic of this move is to divert investor attention from Trump’s tariff threats against Denmark, Germany, the UK, and others. By attributing the “market crisis” to Japan’s bond market out of control, Bessent has gained a valuable political and financial buffer for the White House.

In contrast, South Korea received only symbolic verbal support after promising hundreds of billions of dollars in investment to the US; the won briefly rebounded but quickly fell back, with no substantial protection.

From a global capital perspective, Japan is used as a “pressure valve,” South Korea as a “fund source,” and Europe as a trade battleground. For investors concerned with macro risks, Bitcoin’s safe-haven demand, and active Gate trading, this geopolitical and bond market linkage pattern is becoming a key background influencing capital flows in 2026.

10. Smart money pours $3.2 billion into Bitcoin, is a turning point approaching?

Amid intense volatility in global risk assets in 2026, the Bitcoin market shows a highly notable signal: large funds continue accumulating while retail investors panic-sell. On-chain data from Santiment shows that over the past nine days, wallets holding 10 to 10,000 BTC increased their holdings by 36,322 BTC, worth about $3.2 billion at current prices, a 0.27% increase. This “whale and shark” level capital flow is seen as a potential prerequisite for a price breakout.

In stark contrast, retail behavior shows small addresses sold about 132 BTC in the same period, with overall holdings down 0.28%. This divergence often indicates emotional capitulation among retail while more experienced capital quietly accumulates. Such structural divergence on-chain is often observed near bottom phases.

From a price perspective, Bitcoin initially rose over 7% at the start of 2026 but then fell back as Trump announced tariffs on several European countries, triggering risk-off sentiment globally. BTC briefly dropped below $88,000, then rebounded to around $89,000, with short-term volatility greatly amplified.

For investors tracking Bitcoin trends and Gate trading activity, this capital structure shift is highly informative. Historically, when smart money keeps buying while retail sells, it often signals a potential upward correction. Despite macro uncertainties, on-chain capital behavior suggests a long-term bullish outlook, with a possible rebound.

Current Bitcoin price forecasts, whale movements, and on-chain flows are among the most critical indicators in the 2026 crypto market. As long as this capital divergence persists, the market may be on the verge of a new directional move.

11. Crypto Fear & Greed Index drops to 24, $120 billion evaporates causing extreme panic

The crypto market’s sentiment has sharply turned negative under strong selling pressure, with the Crypto Fear & Greed Index falling to 24, entering “Extreme Fear” territory. This change follows a brief rebound to “Greed” last week, indicating investor confidence has been severely shaken in early 2026.

This sentiment collapse is closely linked to macro risks. Trump’s recent renewed tariffs threats against EU countries, and US Treasury Secretary Scott Bessent’s confirmation at Davos that tariffs will continue to be used as geopolitical tools, have triggered a collective repricing of risk assets. As a result, Bitcoin briefly fell below $90,000 and then to around $88,000; Ethereum also dipped below $3,000, with total crypto market cap evaporating over $120 billion in 24 hours.

Derivatives markets also experienced intense turmoil. Over the past day, more than 182,000 traders faced forced liquidations totaling $1.08 billion, with longs losing nearly $990 million, indicating rapid deleveraging.

Market sentiment deterioration is reflected across social and data layers. The Fear & Greed Index, which combines price volatility, trading volume, market momentum, social media activity, Bitcoin dominance, and Google Trends, now points to a risk-averse mindset.

Analyst Rex on X noted that investor interest has shifted from panic to apathy, with some long-term participants moving funds into stocks and commodities, signaling confidence loss rather than a short-term correction. Another analyst, Doc, believes that despite worse sentiment than during the FTX collapse, Bitcoin still has significant asymmetric upside potential, and a rebound could make it one of the most attractive risk assets in capital markets.

Before geopolitical and macro policy clarity, crypto volatility is expected to remain high, with panic dominating short-term trading.

12. ZAMA public auction launches: sealed bid mechanism debuts, $55 million FDV public sale begins

The Zama protocol’s $ZAMA public auction officially launched today, adopting a sealed bid Dutch auction mechanism, highly distinctive in today’s crypto market. Unlike first-come-first-serve or bidding models, this mechanism emphasizes distribution quality and true price discovery rather than simply maximizing FDV or sales volume, making it viewed as a more “rational” token issuance model.

A key highlight of the ZAMA auction is that all bids are submitted via encrypted means and are unrelated to time, preventing gas fee bidding wars, bot sniping, or front-running issues. Participants, regardless of size, are on equal footing in the rules.

According to CoinList’s official announcement on January 14, the ZAMA token public sale will start at 8:00 UTC on January 21, with a public sale FDV of $55 million, representing 8% of total supply, with a minimum contribution of $100. This pricing and supply ratio give it strong market attention early in 2026.

Meanwhile, the Zama team further disclosed on January 20 that its token staking portal is now live. All participants in the ZAMA public sale can stake and earn yields starting from February 2, when token distribution begins. This arrangement also reinforces ZAMA’s long-term holding and network participation.

At the protocol level, each operator must stake ZAMA to participate in the network and earn rewards. Rewards are first allocated by node type, with FHE nodes receiving 40% and KMS nodes 60%, then distributed within each category based on the square root of staked amounts, to prevent excessive concentration. This ratio will be dynamically adjusted according to the actual infrastructure costs of the two node types, balancing security and economic incentives.

13. Trump’s crypto advisor pressures Congress: CLARITY Act is key to US crypto regulation

As US crypto regulation enters a critical window, Trump’s core crypto advisor Patrick Witt publicly urges all parties in Congress to reach a compromise on the CLARITY Act quickly, to promote the establishment of a unified regulatory framework for the US digital asset market. Witt emphasizes that a multi-trillion-dollar digital asset industry cannot operate long-term without clear regulation, making the rapid implementation of US crypto policy a necessity.

Currently, the Senate is debating how to allocate regulatory authority between the SEC and CFTC over crypto assets, stablecoins, and DeFi protocols. Some crypto lobbying groups worry that the current draft imposes overly strict restrictions on stablecoin issuance and DeFi, potentially weakening US competitiveness in blockchain innovation. But Witt believes it’s better to pass an actionable crypto regulation framework during Trump’s presidency and Republican-controlled Congress rather than wait for a “perfect” version.

He also criticizes Brian Armstrong’s stance of “prefer no bill,” pointing out that abandoning legislation now could lead to a Democratic-led version that’s even less favorable to the industry. In the US crypto policy arena, the CLARITY Act is seen as the core infrastructure for legalizing and institutionalizing digital assets, directly affecting the compliance status of Bitcoin, Ethereum, and stablecoins within the US financial system.

Political factors amplify the urgency of this legislation. The 2026 midterm elections are approaching, with all House seats and some Senate seats up for grabs. Polymarket data shows a 78% chance that Democrats will retake the House, meaning if the bill doesn’t pass in this window, future efforts to legislate crypto market structure will face greater difficulty.

For investors concerned with Bitcoin regulation, stablecoin policies, and US crypto market trends, the CLARITY Act is crucial not only for regulatory jurisdiction but also for whether institutional funds will continue large-scale entry into digital assets. Against the backdrop of global capital’s ongoing focus on US crypto compliance, this legislative battle involving Trump’s administration, Congress, and the crypto industry is becoming a key battlefield in 2026.

14. Mad Lads posts: snapshot completed, possibly hinting at token launch

Mad Lads announced that the snapshot has been completed, possibly hinting at a token launch. Previously, Mad Lads stated that NFT holders would not receive Backpack airdrops, neither now nor in the future.

15. Arthur Hayes: soaring Japanese bond yields may cause investors to lose interest in US Treasuries

Arthur Hayes quoted Bloomberg on social media, raising the question: what happens when Japanese investors, prompted by rising domestic yields, choose to stay in their local markets and stop funding the “US system”?

The report shows that Sumitomo Mitsui Financial Group, Japan’s second-largest bank, plans to actively rebuild its domestic sovereign debt (JGB) holdings after a sharp surge (rout) in Japanese bond yields. Once this yield spike “runs its course,” the bank is prepared to significantly increase its Japanese government bond investments, potentially doubling its current scale.