Bitcoin fell to multiday lows into the weekly close, with BTC price sliding toward the $86,000–$87,000 region as U.S. futures prepared to open. Traders highlighted rising liquidations above $250 million, a potential U.S. government shutdown and upcoming Federal Reserve and macro data events as key downside risk drivers.

On January 25, 2026, Coinbase CEO Brian Armstrong said a top‑10 global bank's chief now sees crypto as their No. 1 priority after meetings at the World Economic Forum in Davos. He also highlighted work on the CLARITY Act, momentum around "stablecoin clarity" in Washington, and the expectation that AI agents will default to stablecoins for payments.

On January 25, analyst Ali Martinez wrote on X that Bitcoin could bottom near $31,000 in 2026, pushing back on supercycle narratives tied to CZ's outlook. His view relies on repeating price fractals and parallels to 2021–2022 action, implying a drawdown of nearly 65% from a quoted price near $88,528.

Bitcoin fell to $87,880, triggering more than $60 million in liquidations of leveraged long positions within 30 minutes. Major altcoins also declined, with Ethereum, Solana, XRP and BNB all posting notable losses as broader macro risks, including a potential U.S. government shutdown and new tariff threats on Canada, weighed on sentiment.

On January 25, 2026, Trump escalated his conflict with Wall Street by filing a $5 billion lawsuit against JPMorgan Chase and its CEO Jamie Dimon, alleging his personal and business accounts were closed for political reasons. He has also targeted Capital One, Bank of America and Goldman Sachs while regulators under his administration prepare up to $200 billion in capital relief for large lenders. Major banks have boosted lobbying spending to about $12 million in Q4 2025 as they seek to shape rules on issues such as fees and crypto regulation.

The Digital Asset Market Clarity Act’s Section 404 would curb interest-like rewards paid solely for holding payment stablecoins and tighten rules on how these products are marketed. The draft lays out which activity-based incentives may remain, such as transaction and loyalty rewards, while drawing a line around when issuers are viewed as directing third-party programs. The outcome could shift stablecoin rewards toward payments-style perks and force platforms and issuers to reassess how they structure partnerships and disclosures.

On January 25, Space announced a $12.3 million refund program for participants in its public token sale on a Solana-based leveraged prediction market, covering 4,677 wallets. The plan starts on January 27, prioritizes smaller investors with on-chain processing, and offers up to 70% refunds for 80% of contributors while larger holders receive reduced compensation.

On January 25, 2026, Japan’s yen logged a sharp rebound, climbing 1.75 percent to about 155.63 per dollar after comments from Prime Minister Sanae Takaichi about speculative and abnormal currency moves. Her remarks, combined with reports that the New York Fed contacted banks to check on the yen exchange rate, forced traders to reassess large short positions and heightened expectations for potential coordinated intervention.