As 2026 began, global markets endured another turbulent week, with U.S. equities slipping overall despite a marginal daily gain for the S&P 500 and a small advance in the Nasdaq Composite. Investors now look to Wednesday's Federal Reserve meeting, where rates are widely expected to remain in the 3.5%–3.75% range, and to a heavy slate of corporate earnings from firms such as Microsoft, Meta, Tesla, Apple, and large industrial names, as AI-related capital spending and massive debt issuance reshape credit markets.

Entropy, a decentralized crypto custody company backed by Andreessen Horowitz, is shutting down after roughly four years in operation, with founder and CEO Tux Pacific planning to return remaining funds to investors. After a late 2025 pivot toward a crypto automation platform failed to meet venture-scale expectations, Pacific decided to close the business and is now considering a move into pharmaceuticals research.

Bitcoin has seen $1.33 billion in weekly net outflows from U.S. spot ETFs as traditional investors scale back exposure, while short-term holders step in to support price action. Short-Term Holder SOPR is hovering near 0.99, indicating selling is close to breakeven, and long-term holders show minimal spending according to Binary CDD, keeping supply pressure limited. Market positioning and the LTH-to-STH SOPR ratio suggest room for further upside if short-term holders move decisively into profit and long-term holders continue to hold.

Japan’s $7.3 trillion government bond market suffered a sharp selloff that erased about $41 billion in one session and drove long‑term yields above 4%. The 30‑year JGB yield jumped by more than a quarter percentage point in a day, while election plans, higher inflation and fresh fiscal stimulus under Prime Minister Takaichi Sanae added pressure to bonds and the yen. Rising Japanese yields are unsettling global markets as carry trades unwind and investors reassess foreign and domestic bond exposure.

Central Huijin Investment offloaded about $67.5 billion from 14 technology‑focused ETFs over six sessions ending Thursday, per Bloomberg. Turnover now spikes on rebounds before prices fade, and traders are recalibrating as CSI 300 rose 1.8% over the past month while Star 50 advanced 16%.

President Donald Trump's America First agenda is prompting allies and investors to reduce their economic dependence on the United States and its supply chains. Efforts to build domestic technology, defense, and manufacturing capacity are driving up costs for key goods and reshaping capital flows as global power becomes more diffuse. While US markets and growth remain strong, rising debt and borrowing needs are fueling concerns over the country's long-term financial position and its central role in the world economy.

About $100 billion was erased from crypto markets by Sunday 9:30 pm UTC as traders reacted to the prospect of a partial US government shutdown. Senate Democrats threatened to block a funding package if it includes DHS money, while prediction markets put shutdown odds near 80% by Jan. 31. Bitcoin fell 3.4% and Ether dropped 5.3%.

On January 26, 2026, Prime Minister Mark Carney said Canada has no plans to negotiate a free trade agreement with China. The stance, taken amid tariff threats from U.S. President Donald Trump, keeps Ottawa aligned with USMCA guardrails and the U.S.-led approach to crypto, stablecoin oversight, and digital finance infrastructure.