TokenSherpa

The probability of the Federal Reserve cutting interest rates in January is only 5%, with expectations to keep the current rates unchanged. By March, the probability of a 25 basis point cut rises to 20.7%, but the chance of no change remains high at 78.4%. Overall, there is a strong expectation of maintaining an hawkish stance in the short term, and the crypto market should exercise caution.

Zama Mainnet Staking Function Launch, ZAMA Token Features a Deflationary Mechanism and Dual Roles. Users can earn rewards through staking. The incentive distribution is uneven, with FHE and KMS nodes receiving 40% and 60% of the rewards respectively, promoting ecosystem participation and liquidity management.

Magic Eden officially announced that starting February 1st, 15% of revenue will be invested into the ME token ecosystem, divided equally to be used for ME token buybacks and USDC rewards for ME stakers. The new mechanism will replace the old buyback plan, allowing stakers to claim USDC monthly, but they should note the 90-day claiming period. This initiative aims to incentivize long-term holding and staking users to share in the platform's growth benefits.

Paradex experienced a system outage on January 19 due to database maintenance, resulting in abnormal BTC price dropping to zero and users facing forced liquidation. The official quickly released a rollback plan to restore the chain to its normal state and ensure user account recovery. The event was handled properly, preventing greater losses.

XRP price drops 4.1% to $1.97, but trading volume soars 158% to $3.62 billion, reflecting market concerns about the price. Recently, XRP has been continuously declining. If the downward trend continues, new support levels need to be found. Selling pressure has increased, and the total crypto liquidation amount approaches $878 million.

A recent project explores distributed edge computing, utilizing lightweight devices and centralized scheduling to build a widespread computing network for flexible AI computing power allocation. The project will use PAI tokens for payments and is expected to be listed on exchanges by 2026.

Last week, the digital asset investment market saw a capital inflow of $2.17 billion, marking the largest weekly inflow. However, on Friday, due to international geopolitical developments and uncertainties surrounding the Federal Reserve Chair nomination, market sentiment reversed, resulting in a capital outflow of $378 million. The United States attracted the majority of the funds, with Bitcoin leading the gains, recording a weekly inflow of $1.55 billion. Despite uncertainties, Ethereum and Solana continued to perform well.

【BlockBeats】There is an interesting trading data point. On the prediction market Polymarket, a trader with the ID "Annica" has recently attracted attention. After reviewing the trading records, this individual has been active since August last year, participating in 1,265 predictions, with a high concentration on Elon Musk-related topics. As of the time of writing, the total net profit has exceeded $270,000, with the largest single profit reaching $91,600. This trading frequency and focus are quite intense. It shows that in the prediction market, there are still many professional players making precise bets on hot events.

Major institutions hold over 4,167,000 ETH, accounting for 3.4% of the circulating supply, sparking market concerns about ETH's scarcity. Despite bullish fundamentals and technicals, ETH has declined approximately 4% in the short term, breaking below $3,200, indicating that market pressure has shattered optimistic expectations.

【Blockchain Rhythm】On the afternoon of January 19th, a whale's operation drew attention. The trader known as "Lightning Reverse" decisively closed a short position of 10,871.77 ETH at 15:52, earning a profit of $1.085 million. However, after earning trading fees, the whale did not rest but immediately turned bullish, establishing a long position of 34.21 BTC with 20x leverage. Currently, this BTC long position is temporarily floating at a loss of $47,000, and its future trend remains to be seen.

The Paradex trading platform in the Starknet ecosystem experienced a major technical failure, and users were forcibly liquidated due to extreme funding rates. The platform initiated an emergency response and plans to roll back the chain state to before the database maintenance. The incident resulted in actual user losses, highlighting the need to optimize the stability of Layer 2 ecosystem infrastructure.

The Korea Customs Service has uncovered a large-scale illegal virtual asset exchange case involving a total amount of 140 billion KRW (approximately $95 million). The criminal gang used various payment methods to convert illegal funds into virtual assets, then exchanged them for Korean won cash. The case highlights regulatory loopholes in virtual assets and serves as a warning for compliant users to be aware of legal risks across multiple countries.

【Crypto World】It is reported that YZi Labs has made a strategic investment of tens of millions of dollars in the trading platform Genius Trading. There is also a significant piece of information behind this funding—well-known investor Zhao Changpeng will serve as an advisor.
This move reflects continued capital optimism towards innovative trading solutions. As an emerging platform, Genius Trading gaining recognition and advisory support from leading institutions may accelerate its market deployment. In the context of increasing competition among exchanges and users' rising expectations for trading experiences, such funding events are worth paying attention to.

A trader known as the "Aggressive Long Pioneer" in the crypto circle executed a stop-loss operation due to FARTCOIN's performance not meeting expectations, closing out 1.79 million short coins with a loss of $40,000. This demonstrates the risks of high-frequency trading and full-position operations, as market reversals can lead to significant losses.

SOL's recent trend has clearly shifted, with the price dropping sharply and forming a large bearish candlestick. The bearish momentum is strong, and increased trading volume indicates selling pressure accumulation. The MACD has issued a death cross signal, while the KDJ shows an oversold condition, potentially indicating a rebound opportunity. It is recommended to consider going long or short at specific price levels. The current support level is at 139.0, and the resistance level is at 145.0.

【Crypto World】The RMB continues to appreciate against the US dollar, with the midpoint price up 27 basis points from the previous trading day, currently quoted at 7.0051, reaching the highest level since mid-May 2023. What does this upward trend mean? From a trading perspective, RMB appreciation is often accompanied by increased expectations of capital inflows, which can impact on-chain trading pairs and the flow of fiat currency in and out of the market. Market participants should pay attention to such exchange rate fluctuations, as they may alter cross-border capital allocation strategies in the short term.

【Blockchain Rhythm】Ethereum experiences a significant correction, falling below the $3200 mark. According to trading data, the 24-hour decline reached 3.71%. In the short term, this drop has attracted market attention, with many traders observing the subsequent support levels.

An experienced trader pointed out that as confidence in fiat currencies declines, the performance of digital assets will diverge. Altcoins have a bleak outlook, while Bitcoin, often called "digital gold," remains unstable and may face strong competition. He also mentioned the pattern of Bitcoin's movements: after a sharp surge, there is often an 80% correction, and the current downtrend has not yet ended. This reminds us that the performance differences among various assets may exceed expectations.

The Trump administration's Treasury Department emphasized the independence of the Federal Reserve, indicating that the incoming chair will not significantly change monetary policy. For the crypto market, this means clear expectations for monetary policy, which helps stabilize asset allocation.

Next week will see multiple major token unlock events, which are expected to impact market liquidity. The main tokens include LayerZero, Plume, and Humanity, with a total unlock market value of $170 million. Traders should pay attention to corresponding price and trading volume changes.