CoinEx Monthly - When the World Shakes: Crypto Bleeds First

A perfect storm of macro headwinds hit crypto markets to open the year. Bitcoin shed 11% month-over-month, closing around $79,000 after a failed rally toward $95,000, while U.S. spot ETF outflows of $1.6 billion reinforced the cautious tone. The Fed held rates steady, but Trump's nomination of hawkish Kevin Warsh as the next Fed Chair sparked a broad risk-off selloff, compounded by a historic Japanese bond market dislocation and violent precious metals correction that triggered spillover liquidations across digital assets. Stablecoin outflows of $7 billion signal a potential shift into deeper bear territory. Amid the noise, we see meaningful structural progress in the AI agent economy with x402 V2 and ERC-8004 setting the stage for what could be an application-layer breakout ahead.

Risk-Off Reset to Open the Year

2026 opened with geopolitical turbulence and closed with a sharp correction driven by macro headwinds and shifting monetary policy expectations. Bitcoin began the month with modest optimism, briefly reclaiming the $95,000 level mid-month supported by constructive positioning. However, the final week saw aggressive selling pressure, with BTC plunging to intra-day lows near $74,000 before closing the month around $79,000, an 11% month-over-month decline.

U.S. Bitcoin spot ETFs recorded net outflows of $1.6 billion in January 2026, following $1 billion in outflows during December 2025, setting a cautious tone for the year. Compounding concerns, Bitcoin is now trading lower than the estimated ETF investors’ average purchase cost, near its estimated mining cost and close to MicroStrategy's average purchase price of approximately $76,000, presenting renewed pressure on publicly-listed Digital Asset Treasury Companies (DATs) whose valuations are increasingly challenged. That said, we are seeing strong interests in BTC sell put with the strike of $68,000–$70,000 range, suggesting meaningful buyer interest and support around those levels.

Geopolitical Flashpoints: Venezuela, Greenland, and Iran

We all witnessed a dramatic escalation in U.S. geopolitical activity that sent shockwaves through global markets, though crypto initially demonstrated surprising resilience.

On January 3rd, U.S. forces conducted "Operation Resolve," capturing Venezuelan President Nicolás Maduro and effectively seizing control of Venezuela's oil industry. Shortly thereafter, President Trump renewed threats to annex Greenland "by force if necessary," citing national security and critical mineral access. These threats, including a U-turn on weaponizing trade tariffs against Denmark, a NATO ally, created unprecedented tensions within the Western alliance and raised the specter of intra-alliance conflict. Simultaneously, Iran faced its second week of anti-government protests, with Trump warning that the U.S. stood "locked and loaded" to protect peaceful protesters if the regime responded with violence.

Surprisingly, equity markets largely dismissed these developments, while gold and oil briefly spiked 7-8% before retreating. Crypto markets similarly remained anchored to macro liquidity conditions rather than geopolitical risks, until the final week when all risk assets sold off together. In our view, markets have increasingly become conditioned to Trump-era geopolitical volatility, treating these events as chronic background noise rather than acute shocks.

Fed Rate Pause and the Warsh Nomination

The Federal Reserve held interest rates unchanged at 3.5%-3.75% at its January 28th meeting, following three consecutive rate cuts in the second half of 2025. The decision was widely anticipated, with markets continuing to price in two rate cuts over the course of 2026. 

However, sentiment changed when President Trump nominated Kevin Warsh to succeed Jerome Powell as Fed Chair upon Powell's term expiration in May. Markets interpreted Warsh, a former Fed governor known for hawkish views, as signaling a central bank potentially more focused on inflation control than monetary accommodation. The announcement triggered an immediate and violent reaction, a sharp dollar rally, treasury yield spike, and broad-based selloff across risk assets including crypto.

Source: CME FedWatch

Japan’s Bond Rebellion is a Hidden Headwind for Bitcoin

Another critical macro development was the historic dislocation in long-dated Japanese government bond (JGB) markets. Japan’s 40-year bond yield surged to a record 4.24% on January 20, marking the first time in over three decades that any Japanese sovereign maturity breached the 4% threshold.

This bond market rebellion reflected declining investor confidence in the balance between the Bank of Japan’s gradual monetary tightening and Prime Minister Sanae Takaichi’s aggressive fiscal expansion agenda. For decades, Japan served as a global anchor for ultra-low interest rates and remained one of the largest foreign holders of U.S. Treasuries. As domestic yields rise meaningfully, Japanese institutional investors have increasingly repatriated capital to capture higher local returns, partially removing a key pillar of global liquidity. The resulting reduction in global risk capital, combined with heightened competition from 4%+ risk-free JGB yields, has created additional structural headwinds for crypto markets.

Key Charts to Watch

$BTC: Rebound Fails at $98,000 Resistance; Deep Correction to $75,000 Support 

This month, after stabilizing near $84,000, BTC attempted to break through the $98,000 resistance level and the EMA line but failed. This was followed by a sharp drop below $84,000, leading to a deep correction toward the $75,000 mark. We maintain a cautious outlook on BTC, as there are currently no signs of strong bullish reversal at the current support levels.

$HYPE: Stabilizing Against the Trend 

Following a four-month corrective phase, $HYPE saw a powerful bottom-out rally this month, climbing from $20.5 to $34.6. Driven by solid fundamentals and the fact that bearish news has been fully priced in, $HYPE has shown remarkable resilience despite the overall market downturn, successfully holding its ground near the EMA. We believe that if BTC can achieve relative stability soon, $HYPE is well-positioned for a standout performance in the near future.

The Precious Metals FOMO and Meltdown

Perhaps the most dramatic market episode of January was the explosive rally, and subsequent violent correction in precious metals. From late 2025 into January 2026, gold and silver surged on the back of currency debasement fears, heightened geopolitical risk, concerns over Fed independence, and extreme speculative positioning. Silver rallied from roughly $30 in 2025 to an all-time high of $120, while gold climbed from $2,700 to a record $5,600.

The turning point came on Friday, January 30. In less than 30 hours, silver imploded from its $120 peak to an intraday low just below $75, a stunning 38% decline marking the worst single-day crash since the Hunt Brothers' market manipulation in March 1980. Gold plunged 11-12% to approximately $4,900, its steepest drop since the early 1980s. While the immediate catalyst was the Warsh nomination and the resulting dollar surge, the magnitude of the selloff reflected extreme leverage in futures markets, cascading margin calls, and forced liquidations.

The precious metals meltdown created significant spillover into crypto markets. Margin calls and forced liquidations in metals positions triggered secondary selling in digital assets as investors scrambled to meet obligations and reduce overall risk exposure.

x402 Status: Commercial Pivot & Public Chain Reshuffling 

With the launch of V2, x402 has evolved from a "Base-native experiment" into a universal infrastructure for the Agent economy.

Key V2 Upgrades

• Credit Layer (BNPL): Introduces "bookkeeping" logic between Agents and providers, allowing deferred settlement. We expect this to catalyze a new derivative sector for "Agent Credit & Guarantee."
• Multi-chain by Default: Adopts universal HTTP standards, breaking liquidity silos across Solana, Ethereum Mainnet, and L2s.
• Hybrid Rails: Bridges crypto and fiat. Agents pay in USDC while providers (AWS/Google) receive fiat, removing major hurdles for Web2 integration.

On-Chain Insights: Solana’s Surge

Following a market peak in early November 2025, the sector has entered a cooling phase, yet a structural reshuffling is evident:

1. Market Share Flip: Since mid-November, Solana has decisively overtaken Base in transaction counts, proving its performance edge for high-frequency Agent interactions.

2. Dominant Players: Market activity is centered on Agent-to-Agent (A2A) services.

• Solana: #1 Dexter AI (LLM Proxy), backed by its meme token $DEXTER.
• Base: #1 Virtuals Protocol (M2M Payment Gateway).

3. De-bubbling: The percentage of wash trading (A→B→A) and self-dealing (A→A) has significantly declined. Current volume is increasingly driven by organic infrastructure testing rather than "vanity metrics."

ERC-8004 Launch: Completing the "Trust" Puzzle  

On January 30, ERC-8004 officially launched on Ethereum Mainnet. While x402 handles payments, ERC-8004 addresses the critical bottleneck of "Agent Trust." 

All-Star Backing - The standard boasts high consensus, proposed by industry leaders:

• Erik Reppel (Coinbase): Lead author of x402; Head of Engineering at CDP.
• Davide Crapis (EF): Head of dAI, aligning with the Ethereum Foundation’s 2026 roadmap.
• Key members from MetaMask and Google Pay.

In our view, the ERC-8004 establishes a verifiable identity and reputation system for AI Agents, mitigating the risk of anonymous Agent defaults.

Ecosystem Role: x402 acts as the "Commercial Rail" (moving capital), while ERC-8004 serves as the "Passport & Credit Score" (verifying entities).

Outlook: With the "Payment + Identity" stack now complete, the foundation is set. We anticipate the Agent sector will shift from infrastructure-led speculation to an application-layer breakout.

Stablecoin Outflow: Market May Confirm Transition to Bear Territory 

This month, stablecoin liquidity recorded a $7 billion net outflow, marking the first net outflow since September 2023. The magnitude of this drainage is substantial and the data is far from optimistic. We believe this is a hallmark characteristic of a deep bear market. If these outflows persist without a short-term pivot back toward incremental inflows, the market will likely enter a prolonged deep bear phase, potentially lasting for at least half year.

Disclaimer

The content provided in this report is for illustrative purposes only and is intended to offer insights into the cryptocurrency market. It is not, and should not be interpreted as, investment advice or recommendations. The information contained herein is based on sources believed to be reliable; however, we do not guarantee its accuracy, completeness, or suitability for any purpose, and it should not be relied upon as such. Any opinions expressed reflect a judgment at the date of publication and are subject to change without notice. Readers are advised to conduct their own research and due diligence and, where appropriate, seek professional advice before making any investment decisions. The authors and publishers of this report accept no liability for any loss or damage arising from the use of the information provided.

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