Last week in the news
Quite an interesting week is behind us. The Fed did not make any changes in the level of interest rates, as expected, while the US President nominated Kevin Warsh as the next Fed Chair. The US Dollar continued to lose in value, however, the most interesting development was with the price of gold and silver, which dropped on Friday by 16% and 30% respectively, after reaching the newest ATH this year. Gold closed the week at $4.865. The S&P500 managed to mark the 7K level, however, dropped for the rest of the week, closing it at 6.939. US 10Y Treasuries tested shortly the 4,2% level, but closed the week at 4,24%. At the same time, drop in the crypto market continued, with BTC dropping below the $80K support during Saturdays trading.
On the US macro front, the U.S. trade deficit continued to widen in November, reaching $56.8 billion, compared with market expectations of $40.5 billion. Meanwhile, the Producer Price Index remained elevated, with PPI rising 0.5% m/m in December, pushing the annual rate to 3.0% y/y. Core PPI accelerated to 3.3% y/y, exceeding forecasts, as headline and core readings both came in above expectations of 0.2% m/m and 2.9% y/y, respectively.
President Donald Trump has nominated Kevin Warsh, a former Federal Reserve governor, to serve as the next Chair of the U.S. Federal Reserve, pending Senate confirmation. Warsh previously served on the Fed’s board from 2006 to 2011 and brings extensive experience in monetary policy and financial markets. His selection by Trump has generally reassured investors concerned about the central bank’s independence, with markets reacting to the prospect of stable leadership at the Fed. However, his nomination faces political hurdles in the Senate, where some lawmakers have signalled opposition tied to ongoing investigations. Warsh’s views on policy and rate direction will be closely watched as markets price in expectations for future interest rates and monetary strategy.
Microsoft shares plunged sharply on January 29, retracing nearly 12% in a single session as investors questioned the company’s massive spending on artificial intelligence and the pace of cloud growth. Despite beating earnings expectations and reporting strong revenue, the market focused on a 66% surge in AI-related capital expenditures, which raised doubts about near-term profitability and return on investment. This marked one of Microsoft’s biggest one-day drops in years and underscored growing scepticism about whether AI spending will translate into sustainable financial gains.
The White House plans to host top executives from major banks and cryptocurrency companies early next week to try to resolve disagreements holding up key U.S. crypto legislation. The talks, organized by the administration’s crypto policy council, will focus on contentious provisions in the stalled Clarity Act, especially those governing whether crypto firms can offer interest or rewards on stablecoin holdings. Banks argue that unrestricted stablecoin yields could drain deposits and threaten financial stability, while crypto firms say such features are essential for competitiveness.
CRYPTO MARKET
The risk-off sentiment continues to hold on the crypto market. During the week, total crypto capitalisation was trying to hold grounds, however, the break during the Saturdays trading session broke the supporting level and led capitalization toward significantly lower grounds. During the time of writing this report, the correction was modestly on hold, however, it could not be with certainty noted that the correction is finalized for the weekend. At this moment, total crypto market capitalisation decreased by 12,6% w/w with an outflow of $377B on a weekly basis. Daily trading volumes were increased to the level of $233B compared to $159B traded a week before. Total market capitalization since the beginning of this year currently stands in a negative territory of -11%, with a total outflow of -$333B.
Although BTC was leading the total capital outflow in nominal terms, still altcoins marked a significantly higher drop. At this moment BTC is down by 12,4% w/w, with an outflow of $221B. ETH had a higher drop of 19%, and outflow of $67B. The vast majority of other altcoins had a drop in value around 20% w/w. Theta was down by 28%, DASH dropped by 33%. Among majors, Solana, ZCash, ADA all lost around 20% w/w. Interestingly, Tron managed to drop by only 3,4%, while Maker dropped by 10%. This week there were no weekly winners among altcoins.
Regarding coins in circulation, this week Polkadot increased the total number of circulating coins by 0,6%, Stellar by 0,4%. This week Filecoin increased its number of coins on the market by 0,3%. DOGE, Avalanche, DASH, ZCash and Solana had an increase of coins by 0,1%.
Crypto futures market
Bitcoin futures extended their downside move, with another decisive weekly sell-off across the curve. Near-dated January 2026 futures declined 7.26% to settle at $83,005, while most other listed maturities posted losses clustered around 6.4%. Longer-dated contracts out to December 2027 closed at $94,230. Despite the sharp correction, the futures curve remains upward sloping, indicating that longer-term price expectations continue to exceed front-end levels. The relatively even distribution of losses across maturities points to broad-based risk reduction rather than stress concentrated in any specific segment of the curve.
Ether futures also remained under pressure, recording weekly declines of roughly 9% across most maturities, with January 2026 settling at $2,728. Losses were slightly more pronounced in the front and belly of the curve, while longer-dated contracts out to December 2027 closed at $3,088. Compared with Bitcoin, Ether continues to exhibit higher downside volatility, reinforcing its sensitivity during risk-off phases. Nevertheless, the Ether futures curve remains in contagion, suggesting that longer-term sentiment has weakened but not reversed.
Overall, the week was marked by continued deleveraging across crypto futures markets, with both Bitcoin and Ether experiencing synchronized declines. Ether once again underperformed on a volatility-adjusted basis, while the persistence of contagion across both curves indicates that longer-term expectations remain constructive despite the ongoing near-term pressure.
Quite an interesting week is behind us. The Fed did not make any changes in the level of interest rates, as expected, while the US President nominated Kevin Warsh as the next Fed Chair. The US Dollar continued to lose in value, however, the most interesting development was with the price of gold and silver, which dropped on Friday by 16% and 30% respectively, after reaching the newest ATH this year. Gold closed the week at $4.865. The S&P500 managed to mark the 7K level, however, dropped for the rest of the week, closing it at 6.939. US 10Y Treasuries tested shortly the 4,2% level, but closed the week at 4,24%. At the same time, drop in the crypto market continued, with BTC dropping below the $80K support during Saturdays trading.
On the US macro front, the U.S. trade deficit continued to widen in November, reaching $56.8 billion, compared with market expectations of $40.5 billion. Meanwhile, the Producer Price Index remained elevated, with PPI rising 0.5% m/m in December, pushing the annual rate to 3.0% y/y. Core PPI accelerated to 3.3% y/y, exceeding forecasts, as headline and core readings both came in above expectations of 0.2% m/m and 2.9% y/y, respectively.
President Donald Trump has nominated Kevin Warsh, a former Federal Reserve governor, to serve as the next Chair of the U.S. Federal Reserve, pending Senate confirmation. Warsh previously served on the Fed’s board from 2006 to 2011 and brings extensive experience in monetary policy and financial markets. His selection by Trump has generally reassured investors concerned about the central bank’s independence, with markets reacting to the prospect of stable leadership at the Fed. However, his nomination faces political hurdles in the Senate, where some lawmakers have signalled opposition tied to ongoing investigations. Warsh’s views on policy and rate direction will be closely watched as markets price in expectations for future interest rates and monetary strategy.
Microsoft shares plunged sharply on January 29, retracing nearly 12% in a single session as investors questioned the company’s massive spending on artificial intelligence and the pace of cloud growth. Despite beating earnings expectations and reporting strong revenue, the market focused on a 66% surge in AI-related capital expenditures, which raised doubts about near-term profitability and return on investment. This marked one of Microsoft’s biggest one-day drops in years and underscored growing scepticism about whether AI spending will translate into sustainable financial gains.
The White House plans to host top executives from major banks and cryptocurrency companies early next week to try to resolve disagreements holding up key U.S. crypto legislation. The talks, organized by the administration’s crypto policy council, will focus on contentious provisions in the stalled Clarity Act, especially those governing whether crypto firms can offer interest or rewards on stablecoin holdings. Banks argue that unrestricted stablecoin yields could drain deposits and threaten financial stability, while crypto firms say such features are essential for competitiveness.
CRYPTO MARKET
The risk-off sentiment continues to hold on the crypto market. During the week, total crypto capitalisation was trying to hold grounds, however, the break during the Saturdays trading session broke the supporting level and led capitalization toward significantly lower grounds. During the time of writing this report, the correction was modestly on hold, however, it could not be with certainty noted that the correction is finalized for the weekend. At this moment, total crypto market capitalisation decreased by 12,6% w/w with an outflow of $377B on a weekly basis. Daily trading volumes were increased to the level of $233B compared to $159B traded a week before. Total market capitalization since the beginning of this year currently stands in a negative territory of -11%, with a total outflow of -$333B.
Although BTC was leading the total capital outflow in nominal terms, still altcoins marked a significantly higher drop. At this moment BTC is down by 12,4% w/w, with an outflow of $221B. ETH had a higher drop of 19%, and outflow of $67B. The vast majority of other altcoins had a drop in value around 20% w/w. Theta was down by 28%, DASH dropped by 33%. Among majors, Solana, ZCash, ADA all lost around 20% w/w. Interestingly, Tron managed to drop by only 3,4%, while Maker dropped by 10%. This week there were no weekly winners among altcoins.
Regarding coins in circulation, this week Polkadot increased the total number of circulating coins by 0,6%, Stellar by 0,4%. This week Filecoin increased its number of coins on the market by 0,3%. DOGE, Avalanche, DASH, ZCash and Solana had an increase of coins by 0,1%.
Crypto futures market
Bitcoin futures extended their downside move, with another decisive weekly sell-off across the curve. Near-dated January 2026 futures declined 7.26% to settle at $83,005, while most other listed maturities posted losses clustered around 6.4%. Longer-dated contracts out to December 2027 closed at $94,230. Despite the sharp correction, the futures curve remains upward sloping, indicating that longer-term price expectations continue to exceed front-end levels. The relatively even distribution of losses across maturities points to broad-based risk reduction rather than stress concentrated in any specific segment of the curve.
Ether futures also remained under pressure, recording weekly declines of roughly 9% across most maturities, with January 2026 settling at $2,728. Losses were slightly more pronounced in the front and belly of the curve, while longer-dated contracts out to December 2027 closed at $3,088. Compared with Bitcoin, Ether continues to exhibit higher downside volatility, reinforcing its sensitivity during risk-off phases. Nevertheless, the Ether futures curve remains in contagion, suggesting that longer-term sentiment has weakened but not reversed.
Overall, the week was marked by continued deleveraging across crypto futures markets, with both Bitcoin and Ether experiencing synchronized declines. Ether once again underperformed on a volatility-adjusted basis, while the persistence of contagion across both curves indicates that longer-term expectations remain constructive despite the ongoing near-term pressure.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.