- Sebastjan Bele
- Updated: January 22, 2026
- Reading time: 6 min
Volatility Hits the Markets, Orcabay Joins Circle Alliance Program, NYSE Closer to 24/7 Trading
Volatility returned as markets reacted to rising US EU tensions over Greenland. Both traditional markets and crypto sold off sharply, with the S&P 500 erasing its 2026 gains before rebounding. Bitcoin fell from $95K to $88K, then recovered to around $90K after more constructive comments from President Trump, who said a framework for a future deal had been discussed and signaled a step back from tariff threats.
On the policy and macro front, Japan’s 40 year bond yields moved above 4 percent for the first time, highlighting tighter financial conditions. President Trump reiterated at the World Economic Forum in Davos that he wants the United States to remain the crypto capital of the world. Longer term projections remain ambitious, with Ark Invest projecting Bitcoin’s market cap could reach $16 trillion by the end of the decade, while tokenized assets are expected to surpass $11 trillion by 2030.
On the business and market side, Orcabay joined the Circle Alliance Program, and the NYSE announced plans to launch 24 hour stock trading alongside tokenization initiatives. Despite the rebound, flows turned negative, with US spot Bitcoin ETFs recording $708.7 million in net outflows, while Ether ETFs saw $286.9 million exit, reflecting continued caution across institutional investors.
News
- Orcabay Joins the Circle Alliance Program
- Trump says “framework of a future deal” discussed on Greenland as he backs off tariffs threat
- US President Donald Trump wants the States to remain the “crypto capital of the world.”
- NYSE announces plans to launch 24/7 stock trading and tokenization
- Japan’s 40 year bond yields surpass 4% for first time
- Bitcoin and ether ETF outflows accelerate
- Ark Invest sees tokenized assets surpassing $11 trillion by 2030
- Cathie Wood and Ark Invest project Bitcoin’s market cap could reach $16 trillion by 2030
- Bitpanda to launch stock and ETF trading as crypto exchanges pivot to full stack financial apps
- Trove Markets fallout deepens after token crashes post launch
Table of Contents
Markets
Best Performers
Despite the broader market pullback, a few tokens are holding up well. The Sandbox ($SAND) continues to lead weekly performance, followed by LayerZero ($ZRO) and Canton ($CC), with Canton ($CC) benefiting from ongoing RWA sentiment. MYX Finance ($MYX) and Sky ($SKY) round out the top five, showing modest but notable relative strength.
Sector Performance
According to GMCI, the GMCI 30, which tracks the top 30 cryptocurrencies, is down 8.65% over the past week. The GMCI Mid Cap is down 11.44%, while GMCI Small Cap indices posted a loss of 10.29%. The rest of the sectors:
- Layer 1: -7.83%
- Layer 2: –13.23%
- DeFi: -10.40%
- AI: -14.99%
- Gaming: +8.58%
- Meme: -13.25%
US Spot ETF Balances
US Bitcoin Spot ETFs
Total Assets Under Management (AUM) = $120,75 Billion
Weekly Inflows = -$320 Million
US Ethereum Spot ETFs
Total Assets Under Management (AUM) = $17,50 Billion
Weekly Inflows = +$110 Million
*The data for BTC / ETH ETFs can vary, so we use Coinglass as our source.
Market Commentary
Bitcoin
Up until Sunday, $BTC looked constructive, breaking out of its range and pushing toward $98K. As we’ve seen many times, conditions shifted quickly. Fears around EU–U.S. tariff tensions sent BTC sharply lower to $88K. More reassuring comments from Donald Trump at Davos helped calm markets, with BTC now trading mid-range.
Key takeaway: without a supportive macro backdrop, BTC is still struggling to behave like a true hedge, unlike gold.
From a price-action perspective, positioning remains difficult. The cleaner setups are either:
- A breakout above $92K, or
- A retest of range-low support
Until macro tensions ease, patience remains the best strategy.
Ethereum
$ETH, similar to BTC, pulled back to weekly support, which has held so far. From a risk–reward perspective, this area looks reasonable for positioning, with a range-high target at monthly resistance and a stop-loss placed below the recent wick.
Bitcoin dominance increase to 59.2% (+0.2% weekly).
In traditional markets:
- S&P 500: -1.01%
- NASDAQ: -0.89%
- Gold: +4.61% and trading at new ATHs.
The total crypto market cap stands at $3.04 trillion, down 7.32% from $3.28 trillion, reflecting the market’s reaction to US–EU tensions. The Fear & Greed Index is at 20 (Fear), a sharp drop from last week’s 61 (Greed).
What's Next?
Crypto ended last week strong, with bullish sentiment returning as BTC traded toward $98K, before a sharp pullback to $88K triggered by renewed EU–U.S. tensions. The move back toward $92K was accompanied by roughly $850M in long liquidations, about half across BTC and ETH, signaling that leverage appetite had started to return, something largely absent in recent weeks.
Markets stabilized after comments from Donald Trump, who said a framework for a Greenland deal is in place. Stocks, ETFs, and crypto rebounded, while gold and silver briefly dipped, suggesting a short-term risk-on shift. Institutions continue to position for tokenization, with the New York Stock Exchange confirming it is exploring 24/7 trading via tokenized rails, and Trump reiterating that he wants the US to remain the crypto capital of the world.
Tensions are rising around the CLARITY Act, with the White House and Coinbase at odds. The administration is reportedly considering withdrawing its support for the bill after Coinbase pulled its backing. Coinbase CEO Brian Armstrong has defended the decision, pushing back after the White House allegedly described the move as a “rug pull” against the administration and the wider crypto industry.
Monday’s volatility flushed positioning aggressively but cleared quickly without cascading, a constructive sign. ETF inflows are increasing, and in our view underlying demand and bullish sentiment remain intact, though still masked by macroeconomic uncertainty.
Orcabay Joins Circle Alliance Program
We’re excited to share that we’ve joined the Circle Alliance Program, a global community building the foundations of the on chain economy.
As part of the Circle Alliance Program, we look forward to collaborating with ambitious projects, protocols and institutions to push web3 forward and help bring the on chain economy to a global scale.
Meme of the Week
We hope you enjoyed this week’s edition of Diary of a Market Maker! Stay tuned for more insights, updates, and market-moving highlights as we continue to keep you informed and entertained in the ever-evolving world of crypto.
In the meantime, follow us on LinkedIn and X (Twitter) for real-time updates and more!
Until next time, happy trading and stay ahead of the curve!
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, investment, or other professional advice. All opinions expressed herein are solely those of the author and do not represent the views or opinions of any entity with which the author may be associated. Investing in financial markets involves risk, including the potential loss of principal. Readers should perform their own research and consult with a licensed financial advisor before making any investment decisions. Past performance is not indicative of future results.
Jakob Brezigar
Jakob, an experienced specialist in the field of cryptocurrency market making, boasts an extensive international presence. With Orcabay, he has skillfully managed major operations and deals for a wide array of global stakeholders.
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