Crypto Market Daily Update | The cryptocurrency market rebounds amid volatility, with Bitcoin consolidating above $89,000; a breakthrough emerges in the Senate Agriculture Committee’s crypto legislation negotiations as Democrats express willingness to ret

January 27: The cryptocurrency market rebounded after fluctuations. As of press time, $Bitcoin (BTC.CC)$Bitcoin rose by 1.02%, trading at $88,534.17; $Ethereum (ETH.CC)$Ethereum increased by 1.34%, quoted at $2,938.24.

Key Focus

According to a report by The Block, the U.S. Senate Agriculture Committee originally planned to review and vote on comprehensive cryptocurrency legislation this Tuesday but postponed the session to Thursday due to weather conditions. A Democratic aide familiar with the negotiations stated that despite Republicans unilaterally drafting a new version of the bill in early January without consulting Democrats and proceeding with the vote, which disrupted bipartisan cooperation, a group of Democratic lawmakers remains willing to resume discussions with the team led by Republican Senator John Boozman, chairman of the committee, to reach a bipartisan consensus before the vote.

The aide noted that from November last year to the end of the year, both parties conducted intensive bilateral consultations and stakeholder meetings on the draft bill, making significant progress. However, upon returning after the New Year, Republicans unilaterally altered their plans. A spokesperson for the Agriculture Committee stated that months of bipartisan meetings had allowed for thorough discussions, and the current version reflects most negotiation content, with contentious issues now necessitating a push for voting. Patrick Witt, Executive Director of the White House Digital Assets Advisory Council, recently called for the swift passage of a market structure bill while the government maintains a favorable stance toward the cryptocurrency industry. Analysts pointed out that if the bill fails to pass, the U.S. cryptocurrency sector may continue to face a ‘structural risk premium,’ limiting its growth potential.

According to an analysis by Cointelegraph, the publicly listed company $Bitmine Immersion Technologies (BMNR.US)$currently holds over 4.2 million ETH, representing approximately 3.5% of the circulating supply, with more than 2 million already staked. Based on the company’s cited comprehensive Ethereum staking rate of 2.81%, its staked portion is expected to yield approximately $164 million in annualized staking rewards.

Tom Lee, Chairman of the company, stated that if all its ETH were staked, the estimated annual revenue at the current staking rate would reach approximately $374 million. Bitmine Immersion Technologies is collaborating with multiple staking service providers and plans to launch its own validator infrastructure by 2026 to internalize staking operations.

$Bitmine Immersion Technologies (BMNR.US)$Chairman Tom Lee posted on the X platform, stating: ‘The parabolic and continuous surge in gold and silver is overshadowing the ongoing strengthening of the intrinsic fundamentals of cryptocurrencies, particularly Ethereum and Bitcoin. As emphasized at the Davos 2026 Forum, financial institutions have explicitly recognized Ethereum and smart blockchain platforms as the foundation for building future financial infrastructure. When fundamentals show an upward trend to the right, it is only a matter of time before prices follow suit.’

According to a report by The Block,$Blackrock (BLK.US)$a registration statement for the iShares BTC Premium Income ETF has been filed with the U.S. Securities and Exchange Commission (SEC), aiming to provide income generation functionality for Bitcoin investments.

The fund will directly hold Bitcoin to track spot prices while generating income through an actively managed ‘covered call’ strategy. Its investment advisor will actively sell call options—primarily targeting Blackrock’s own IBIT shares, and occasionally other ETP indices tracking Bitcoin—and the premiums received from these options will be treated as income. If approved, this product will offer Bitcoin ETF investors a yield mechanism akin to Ethereum or SOL funds that generate returns through staking.

• Bitmine increased its holdings by 40,302 ETH last week, with total holdings surpassing 4.24 million ETH.

According to Bitmine’s announcement, as of January 25, the company held 4,243,338 ETH, accounting for approximately 3.52% of Ethereum’s total supply, of which 2,009,267 ETH were staked. The company added 40,302 ETH last week. Bitmine’s total value of crypto assets, cash, and ‘Moonshot’ investments reached $12.8 billion, with ETH as its primary reserve asset. Its self-developed staking infrastructure ‘MAVAN’ is expected to launch in Q1 2026 for large-scale deployment of ETH staking.

• Strategy increased its Bitcoin holdings by 2,932 coins last week, bringing the total holdings to 712,647 coins.

$Strategy (MSTR.US)$An 8-K filing submitted to the SEC shows that the company purchased 2,932 BTC at an average price of approximately $90,000 per coin between January 20 and 25, spending a total of $264.1 million. The funding source was proceeds from ATM stock sales. As of January 25, the company held a total of 712,647 BTC, with cumulative purchases amounting to $54.19 billion and an average cost per coin of $76,037.

• Vitalik: The scalability hierarchy of blockchains consists of computation, data, and state.

Ethereum co-founder Vitalik Buterin published an article elaborating on the scalability hierarchy within blockchains, namely computation, data, and state. He stated that computation is relatively the easiest to scale, which can be achieved through parallel processing, requiring block builders to provide ‘hints,’ or directly replacing extensive computations with proofs. Data occupies the middle tier, and if availability guarantees are required, this demand cannot be bypassed but can be split using techniques like sharding or erasure coding (e.g., PeerDAS) and can gracefully degrade (for instance, nodes with only 1/10 of the data capacity can still produce blocks 1/10 the size).

State is the most challenging element to scale. To ensure the verifiability of individual transactions, the complete state must be obtained. If the state is replaced by a tree structure and only the root hash is retained, updating the root still requires the full state. Although there are methods to split the state, these typically involve architectural changes and lack universality. Therefore, he concluded that any solution which replaces state with data or substitutes data with computation—without introducing new centralized risks—should be seriously considered in principle.

According to Nikkei, Japan’s Financial Services Agency is expected to lift the ban on spot cryptocurrency ETFs such as Bitcoin by 2028. To achieve this, authorities plan to amend the Enforcement Ordinance of the Investment Trust Act, listing virtual currencies as ‘specific assets’ eligible for investment trusts. It has been reported that major financial institutions like SBI Holdings$Nomura Holdings (NMR.US)$are already advancing the development of related products. If approved for listing by the Tokyo Stock Exchange, retail investors will be able to trade cryptocurrency ETFs through securities accounts, similar to trading stocks or gold ETFs. Previous surveys indicate that at least six asset management firms are researching or developing such products, targeting both individual and institutional investors.

The precondition for lifting the ban is tax reform. Currently, Japan applies comprehensive taxation to virtual assets, with a maximum tax rate of 55%. Discussions are underway to shift to segregated taxation, unifying the rate at 20%. Analysts suggest this move will broaden the asset allocation options available to individual and institutional investors.

Chris Burniske, former head of crypto at Ark Invest and now a partner at Placeholder VC, stated: “I have not yet started buying, but if I were a buyer, I believe the key price levels for BTC to focus on include:

Around $80,000: The low point in November 2025, marking a phase bottom of this ‘bear market’; around $74,000: The low in April 2025 during the tariff panic, slightly below MSTR’s cost basis (approximately $76,000); around $70,000: The upper bound of the $50,000–$70,000 range, close to the peak of the 2021 bull market; around $58,000: The 200-week moving average, also aligning with the on-chain cost basis (realized value approximately $56,000); $50,000 and below: The lower boundary of the weekly range, holding significant psychological importance. A breach below this level might reignite claims that ‘Bitcoin is dead.'”

Importantly, I do not care about short-term market movements. If prices rebound from current levels, I will hold my existing positions and gradually diversify investments. However, if the market sees a significant downturn, I will choose to increase my holdings in BTC and selected crypto-assets.

• Coinbase: 71% of institutional investors believe Bitcoin is undervalued in the $85,000–$95,000 range

According to Cointelegraph, Coinbase stated in its ‘Charting Crypto Q1 2026 Report’ that among 75 surveyed institutional investors, approximately 71% believed Bitcoin was undervalued when priced within the $85,000–$95,000 range. The survey was conducted between December of last year and early January this year, during which Bitcoin prices were largely within this range.

The report noted that since the significant market correction in October last year, cryptocurrency prices have continued to trade sideways or decline. Currently, the price of Bitcoin is approximately 30% lower than its historical peak at that time. Despite a lack of noticeable improvement in market sentiment, 80% of surveyed institutions indicated that if the market falls another 10%, they would choose to hold or increase their cryptocurrency positions, demonstrating long-term confidence. Meanwhile, traditional assets such as gold and silver havesafe-haven assetsseen notable price increases. The report suggests that despite uncertainties such as geopolitical risks, the fundamentals of the U.S. economy remain robust. Moreover, market expectations that the Federal Reserve may implement two interest rate cuts in 2026 could provide subsequent support for risk assets like cryptocurrencies.

According to a report by The Block, Bitwise, a crypto asset management firm, has launched its first on-chain vault strategy via the decentralized lending protocol Morpho, officially entering the DeFi market. This initial vault aims to achieve a yield of up to 6% on the USDC stablecoin by deploying funds into the ‘over-collateralized’ lending markets on Morpho. Bitwise will be responsible for strategy design and real-time risk management, while user funds will remain non-custodial and retained on-chain.

The head of Bitwise’s multi-strategy solutions stated that this initiative aims to allow investors to access on-chain yields without having to manage complex risk parameters themselves. In the future, the strategy may expand to support other major stablecoins, crypto assets, and broader DeFi strategies, including tokenization of real-world assets, liquidity provision on DEXs, and yield farming.

Bank of Korea Governor Lee Chang-yong, speaking at the Asian Financial Forum in Hong Kong, stated that due to market pressures, authorities have permitted Korean residents to invest in virtual assets issued overseas. Meanwhile, financial regulators are studying the establishment of a new registration system that would allow domestic institutions to issue virtual assets. Lee Chang-yong noted that stablecoins denominated in Korean won are expected to be primarily used for cross-border transactions, while tokenized deposits will be more focused on domestic payments. Stablecoins remain highly controversial, and Lee expressed concerns that the introduction of a Korean won stablecoin could be exploited to circumvent capital flow management measures, particularly when combined with widely-used and easily accessible US dollar stablecoins, which could amplify risks. Lee also mentioned that the Bank of Korea is advancing several pilot programs involving tokenized deposits and wholesale CBDCs to preserve the dual-layer financial system.

Editor/Deng