The Federal Reserve will buy $55 billion in Treasury bills as it resumes expanding its balance sheet, fueling hopes that added liquidity could support a crypto market rally. Traders and analysts say the move may ease financial conditions and lift risk assets, including Bitcoin and Ethereum.
Validators have deposited 77.85M ETH—about 46% of the total supply—bringing the value locked to roughly $256 billion; the milestone boosts network security but raises liquidity and centralization concerns.
Major Indian crypto exchanges have called on policymakers to review recent tax measures before the February budget, warning that transaction-level taxes and restrictions on offsetting losses are draining market liquidity.
A South Korean regulation due to take effect will bar roughly 99% of domestic buyers from participating in Bitcoin markets, a move that could sharply reduce onshore liquidity and widen spreads for BTC trading.
Bitcoin rose above $94,000 after a week of strong gains, with whale accumulation and retail profit-taking concentrated around a key liquidity zone. The move adds momentum to 2026’s early rally but raises short-term volatility risks.
Circle’s USDC Treasury destroyed about 51 million USDC on Solana on Dec. 29, further reducing the stablecoin’s circulating supply. Whale Alert flagged the burn as part of Circle’s ongoing supply management efforts.
The Bank of Canada has demanded stablecoins be fully backed by high-quality liquid assets to reduce run risk and protect consumers.
A Solana Foundation representative says a dedicated bridge between the XRP Ledger and Solana is in development, potentially enabling roughly $122 billion in XRP liquidity to move to Solana. The move could deepen liquidity on SOL and expand XRP's DeFi reach, though no launch date has been announced.
On-chain metrics show Solana's liquidity has dropped back to bear‑market levels, leaving roughly $500 million in long positions exposed if the price falls another 5.5%.
The Federal Reserve has stopped shrinking its balance sheet, ending quantitative tightening and shifting liquidity dynamics in favor of risk assets. Crypto markets may see renewed inflows and reduced funding stress, though macro risks remain.