On January 14, 2026, over $718 million in crypto short positions were liquidated within 24 hours, marking the largest short wipeout since the October market crash. Bitcoin shorts made up about $402 million of the total and Ethereum around $255 million, as both assets broke through key resistance levels. The event forced closures across major derivatives exchanges and highlighted how crowded bearish positioning and leverage had built up before the sharp move higher.

Arbitrum-based leverage trading protocol Futureswap has suffered another exploit within four days, with attackers draining about $74,000 through a newly exposed reentrancy vulnerability in an existing contract. The latest breach follows a separate $395,000 attack on the same contract and a December 2025 governance exploit of at least $830,000, bringing total losses on the platform to over $1 million across three incidents.

As U.S. lawmakers advance the CLARITY Act, a policy battle is intensifying over whether stablecoin rewards should be treated as illegal interest and how that definition impacts banks and crypto platforms. FDIC data from Dec. 15, 2025 shows national savings and checking rates far below a 3.89% Treasury reference yield, while programs such as Coinbase's 3.50% USDC rewards and Binance's Simple Earn promotions highlight competing cash-like returns. The drafting dispute is now focused on drawing a line between "hold-to-earn" yield and activity-based loyalty incentives, with banks warning that stablecoin rewards threaten both their deposits and customer relationships.

On 14 January 2026, analyst Benjamin Cowen argued that the current crypto upswing lacks the broad participation that defined the 2020–2021 bull market. He highlighted a multi‑year decline in the Advance Decline Index for the top 100 cryptocurrencies, defensive flows into Bitcoin, and liquidity dilution across a growing number of altcoins as key reasons market breadth has weakened.

Broad gains extended the cryptocurrency rally, lifting total market capitalization back above $3.2 trillion. According to market data, the value reached roughly $3.28 trillion with a daily increase of more than four percent as Bitcoin traded near $96,900 and Ethereum advanced toward $3,350. Bitcoin dominance stayed close to 59 percent, while altcoins showed participation without a full rotation.

In early January 2026, stablecoins’ share of the total crypto market reached an all-time high of 10.19%, with their combined market cap holding above $300 billion for three consecutive months. After fluctuating between 7% and 9.8% in prior growth phases, their dominance rose sharply from mid-2025, alongside a near $400 billion drop in overall crypto value. The latest figures highlight a near doubling of stablecoin market share in under a year and underscore their growing role as a core liquidity and risk-management tool in digital assets.

On January 14, 2026, Minneapolis Fed President Neel Kashkari stressed the importance of Federal Reserve independence while addressing a Department of Justice criminal investigation into Chair Jerome Powell and alleged Trump administration pressure on the central bank. Kashkari framed the administration's actions as a monetary policy issue, defended Powell, and noted that while political tensions could add to market volatility, there is no direct, specific impact on cryptocurrencies at this stage.

On January 13, 2026, State Duma Financial Market Committee chair Anatoly Aksakov confirmed that Russian lawmakers have drafted a bill to remove cryptocurrencies from the country's system of "special financial regulation." The proposal would classify crypto as a standard financial instrument, allow non-qualified investors to buy up to 300,000 rubles in digital assets, and expand its role in domestic and cross-border payments. The bill is expected to be a central topic of the State Duma's spring session.