Crypto markets have been under pressure over the past 24 hours, with total market capitalization dropping more than 3% as selling intensified across major sectors.
Bitcoin (BTC) fell 4%, briefly dipping below $88,000 before stabilizing near $89,000.
Ethereum (ETH) underperformed, sliding 7% to fall below $3,000.
The centralized finance (CeFi) sector led losses, down 5.06%, with Binance Coin (BNB) down 5.43%, OKB losing 4.99%, and Aster (ASTER) falling 5.3%. Only MX managed a small gain of 0.38%.
Weakness also extended across DeFi, Layer 1, Layer 2, Meme, and RWA sectors, although a few tokens bucked the trend. River (RIVER), Keeta (KTA), and Canton Network (CC) posted notable gains despite the broader risk-off mood.
Galaxy Plans $100M Hedge Fund for Crypto Volatility
Mike Novogratz-led Galaxy is launching a $100 million hedge fund in Q1 2026 to capitalize on digital asset price swings, according to the Financial Times. The fund has already secured $100 million in commitments from family offices, high-net-worth individuals, and institutions, with Galaxy providing seed capital.
Up to 30% of the fund’s assets will be allocated to crypto tokens, while the rest will target financial services stocks influenced by digital asset innovation and regulation. Galaxy currently manages roughly $17 billion in digital assets.
Bitcoin & Ethereum ETFs See Heavy Outflows
Institutional investors are showing caution: Bitcoin and Ethereum spot ETFs recorded combined outflows of $713 million on January 20.
Bitcoin spot ETFs: $483 million net outflow
Ethereum spot ETFs: $230 million net outflow
XRP spot ETFs: $53.3 million net outflow
Solana (SOL) stood out as the exception, attracting a modest $3.08 million net inflow, bucking the broader risk-off trend.
Warning: New Snap Store Attack on Crypto Wallet Users
SlowMist has issued a warning about a new attack targeting Linux users via the Snap Store. Hackers are exploiting expired domains to insert backdoors into fake apps posing as popular crypto wallets like Exodus, Ledger Live, and Trust Wallet.
These malicious apps ask users for their wallet recovery seed phrases, enabling attackers to steal funds. SlowMist urges everyone to verify sources carefully before downloading any wallet software.
Crypto Fear & Greed Index Hits Extreme Fear
The Crypto Fear & Greed Index fell to 24, signaling extreme fear in the market, down six points from yesterday. Short-term sentiment is weak, though the seven-day average sits at 44 (neutral), and the 30-day average is 31, showing cautious investor sentiment overall.
Trump Crypto Advisor Pushes Fast-Track Market Structure Bill
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, is urging U.S. lawmakers to pass a crypto market structure bill quickly under President Trump’s crypto-friendly administration.
He warned that delays could lead to more restrictive legislation in the future and stressed that compromises will be necessary to secure Senate support. Witt’s comments come after Coinbase withdrew support for the current bill draft over concerns around tokenized equities, DeFi privacy, and stablecoin yields, which led the Senate Banking Committee to postpone its markup hearing.
