Since October, shares of major crypto exchange operators have dropped 40–60% amid a severe contraction in spot trading activity. Monthly spot volumes fell from roughly $2.3 trillion in October to $120–150 billion in January 2026, while an October 10 liquidation event erased about $19 billion in positions, raising concerns over market depth.

In a weekend post on X, Global Macro Investor founder Raoul Pal argued that bitcoin’s drawdown reflects a short‑term US liquidity squeeze, not a broken crypto cycle. He cited the 2024 reverse‑repo drain, a July–August TGA rebuild and shutdown effects, and said gold and long‑duration tech competed for flows; BTC was $77,510 at press time.

Donald Trump said the U.S. will reduce tariffs on Indian exports to 18% from 25% after a call with Narendra Modi, and wrote the change is "effective immediately." He tied the move to India cutting purchases of Russian oil, and claimed India would buy up to $500bn in U.S. goods, a figure analysts dispute.

Institutional investors withdrew $1.7 billion from digital asset investment products in a single week, pushing year-to-date flows to a net outflow of $1 billion. The United States led with $1.65 billion in redemptions as Bitcoin products lost $1.32 billion; Ethereum, XRP and Solana products also saw weekly outflows.

A crypto analyst argues that stress in Japan’s bond and currency markets could force Tokyo to sell part of its multi-trillion U.S. Treasury portfolio, potentially triggering fresh dollar liquidity from the Federal Reserve and a Bitcoin rally. Against this macro backdrop, the analyst highlights BitTensor’s Subnet 32, Its.AI, as an example of an AI-focused crypto project with paying customers, measurable performance and multiple revenue streams.

On February 2 2026, Trump outlined a $12 billion initiative called Project Vault to create a national civilian mineral stockpile aimed at reducing U.S. dependence on Chinese rare earths and other key materials. The structure combines a $10 billion, 15-year loan from the U.S. Export-Import Bank with $1.67 billion in private capital, giving manufacturers such as GM, Boeing, Google, Stellantis and others paid access to stored resources they must later replenish.

A weekend sell-off erased about $230 billion from crypto market value and led to $2.5–$2.53 billion in forced liquidations within 24 hours. Bitcoin briefly fell below $77,000. Despite the turmoil, XRP exchange‑traded products recorded roughly $16.79 million of net inflows, and a busy macro week ahead could add volatility.

Solana slipped below $105, with SOL trading at $102.91 after a 15.90% weekly drop. CoinShares said in a weekly update that crypto investment products saw $1.7 billion of outflows, turning year-to-date flows to a $1 billion global outflow. Flows were led by $1.65 billion from the US, while short Bitcoin products drew $14.5 million.