The market on January 21, 2026, was highly volatile. Bitcoin experienced a significant correction, and altcoins generally came under pressure, but MicroStrategy was buying $2.1 billion worth of BTC at this time, clearly positioning at the bottom. The US stock market, bonds, and forex all declined simultaneously, demonstrating the considerable power of this sell-off, yet the storage sector remained strong and resilient.

Interestingly, gold and silver sought opportunities amid the crisis, both hitting new highs. Against the backdrop of ongoing deterioration in US-Europe relations, European investors began reducing their holdings of US Treasuries and turned to gold for safe-haven assets—this signal is very clear. The Polish central bank approved a purchase plan of 150 tons of gold, further pushing up gold prices. Gold RWA tokens like PAXG and XAUT also hit new highs, indicating that asset tokenization has found a foothold in physical gold demand.

The privacy coin sector shined brightly. Tokens related to FHE technology surged to new highs, making privacy the main theme of the recent market. Smaller coins like River were also highly sought after, with short-selling rates soaring to 470%, signaling a short squeeze is imminent.

On the other hand, the HYPE token on the derivatives platform weakened, with an additional $60 million worth of unlocks expected soon. Meme coins on the BSC chain collectively underperformed, and projects scheduled to be listed on a major exchange like Alpha did not meet expectations, leading to a cooling of overall ecosystem popularity.

The most noteworthy development is at the policy level. The US Clarity Act redefines altcoins as securities, bringing them under SEC regulation. This means new project tokens will require periodic mandatory disclosures, with a funding cap of $200 million and a maximum annual sell-down limit of 10%. In comparison, issuing stocks directly may offer a higher cost-performance ratio for new projects. DeFi protocols will also face regulatory requirements comparable to those for banks and brokerages, with RWA and stock tokenization treated as securities. Under this strict regulatory crackdown, the traditional model of altcoins is approaching its end.