JPMorgan analysts said crypto ETF flows are showing signs of stabilizing in January after bitcoin and ether products saw outflows in December. They attributed the recent correction mainly to investor de-risking triggered by MSCI’s October 10 announcement concerning MicroStrategy, rather than worsening liquidity. Equity ETFs drew a record $235 billion globally in December, the analysts noted.

Privacy-focused tokens such as Zcash have sharply appreciated in recent months, while venture firms highlight privacy as a core focus area for 2026. Investors argue that institutional traders, traditional finance and everyday users increasingly need confidential onchain activity, even as regulatory uncertainty and usability challenges still threaten broader adoption.

Pyth Network has introduced monthly PYTH buybacks funded by network revenue, committing 33% of the DAO treasury starting this month, according to Michael James of Douro Labs. The inaugural purchase is expected at $100,000–$200,000 with the treasury near $500,000. Pyth Pro reached $1 million ARR in its first month since launching in late September, alongside 80+ subscribers and steady inbound leads.

Venture capital investors attribute the recent digital asset downturn to two primary factors: the October 10 liquidation event and worsening macroeconomic conditions. Key market stabilization signals include Federal Reserve policy clarity, consistent economic data releases, and sustained capital inflows into cryptocurrency investment products. Several investors note improving risk-reward ratios as valuations for revenue-generating tokens have reset to 2024 levels despite stronger fundamental metrics.

Major bitcoin traders significantly increased their exchange deposits following last week's price decline to approximately $80,000, data show. On November 21, total bitcoin transfers to exchanges reached 9,000 BTC, with 45% originating from large deposits of 100 BTC or more. The average bitcoin deposit value climbed to 1.23 BTC in November, marking the highest level in a year.

Strategy's bitcoin premium has fallen to levels approaching those last seen during the 2021–2022 crypto winter, TD Cowen analysts said. The firm maintains its buy rating and $535 price target for MSTR, projecting the company will hold 815,000 bitcoin by fiscal year-end 2027. Potential removal from MSCI indices in February poses a near-term risk, with an estimated $2.5 billion in passive outflows expected.

Coinbase has agreed to acquire Vector.fun, a Solana-based trading platform developed by Tensor Labs, for an undisclosed sum. The deal, expected to close by year-end, represents Coinbase's ninth acquisition in 2025. Vector's technology will be integrated into Coinbase's decentralized exchange infrastructure to expand access to Solana ecosystem assets.

Retail investors withdrew approximately $4 billion from spot bitcoin and ether exchange-traded funds throughout November, data show. The outflows, which already exceed the previous record set in February, represent the primary driver behind the recent cryptocurrency market correction, according to JPMorgan analysts. During the same period, equity ETFs attracted roughly $96 billion in retail inflows.

Strategy could face approximately $2.8 billion in outflows if removed from MSCI indices, with total exposure reaching $11.6 billion should other index providers follow, JPMorgan analysts said. The bitcoin-focused company holds roughly $9 billion of its $50 billion market capitalization in passive funds tracking major indices including the Nasdaq-100, MSCI USA, and MSCI World. MSCI is consulting on a proposal to exclude companies primarily engaged in digital asset treasury management, with a decision due January 15, 2026.