Bitfinex Alpha Newsletter Offers Early Market Insights and Analysis

Bitcoin has closed below its yearly open, approaching the $80,822 lows in what marks the **largest pullback of the current cycle**. **Key developments:** - Liquidations reached **$1.7 billion in 24 hours**, surpassing levels seen during the Covid crash and FTX collapse - Uncertainty-driven selling during US trading sessions continues to apply downward pressure - Price action reflects ongoing market stress as traders exit leveraged positions The scale of liquidations indicates significant deleveraging across the market, with forced selling creating cascading price pressure. US session volatility suggests macro uncertainty remains a primary driver of current weakness.

**Tokenised equities are making the leap from theoretical concept to practical implementation.** The digital asset market is witnessing a significant shift as tokenised equities begin to materialize in real-world applications. This development marks a notable evolution in how traditional securities can be represented and traded on blockchain infrastructure. **Key developments:** - Traditional equity instruments are being converted into digital tokens - The transition represents a practical application of blockchain technology in traditional finance - This shift could potentially reshape how securities are traded and settled The move toward tokenised equities suggests growing institutional acceptance of blockchain-based financial instruments. This development occurs as the broader digital asset market continues to mature and integrate with traditional financial systems. [Read the full analysis](https://blog.bitfinex.com/bitfinex-alpha/bitfinex-alpha-in-the-absence-of-spot-demand-btc-is-drifting/)

The New York Stock Exchange is launching a blockchain-enabled trading venue that will operate around the clock for tokenized equities. This marks a significant shift from traditional market hours. **Key developments:** - NYSE's new platform will enable 24/7 trading of tokenized stocks - Companies like Strategy and Bitmine Immersion are adding Bitcoin and Ethereum to their balance sheets as long-term reserves - This follows earlier moves by crypto exchanges to offer on-chain stock trading The initiative represents a practical step in bringing traditional finance infrastructure on-chain, moving beyond pilot programs to operational implementation.

The Federal Reserve maintained interest rates at 3.5-3.75% at its January 2026 meeting, signaling a cautious stance amid ongoing inflation concerns. **Market Impact:** - Bitcoin perpetual futures markets saw significant volatility - Over $250 million in long positions liquidated - Additional $140 million in liquidations recorded - BTC holding near recent lows despite pressure The Fed's decision to keep rates steady reflects limited appetite for monetary easing. For crypto markets, this translates to a measured near-term outlook with constrained upside potential absent new liquidity support. Traders remain cautious as Bitcoin tests key support levels in the wake of the announcement.

**Market Shift Accelerates** The US Dollar has weakened approximately 11% over the past year, while gold has surged 29% in just 28 days, reaching all-time highs around $5,580 per ounce. **Capital Flight to Hard Assets** - Fear of fiat currency depreciation is driving investors toward tangible stores of value - Retail investors are expected to gradually redirect cash savings into more liquid assets - The crypto market appears positioned to benefit from this trend **Historical Context** The BTC/gold ratio previously dropped over 50% from its peak when gold hit $4,700/oz. Following that decline, Bitcoin significantly outperformed gold. Analysts suggest monitoring this relationship as liquidity conditions evolve through 2026.