Crypto & Macro Market Update

Market Performance

“Prepared at UTC 07.54 am”

Today’s Key Events

• President Trump to Attend Detroit Economic Club
• Inflation and Weekly ADP Data to be Tracked in US Macro Data Set
• JPMorgan Chase & Co Earnings Report
• Fed Members Musalem and Barkin to Speak
• US 10-Year Treasury Bond Auction

Powell Opposes Criminal Investigation

The US Department of Justice has launched a criminal investigation into Fed Chairman Jerome Powell regarding cost overruns in the Fed’s $2.5 billion headquarters renovation project and the accuracy of statements made to Congress. In a video statement posted on the Fed’s website, Powell argued that the investigation was politically motivated. He said the threat of criminal charges was a result of the Fed making interest rate decisions independently of presidential preferences. The investigation has reignited debates about the Fed’s independence.

White House: Trump Did Not Order Investigation of Powell

White House Press Secretary Karoline Leavitt stated that President Trump did not instruct the Justice Department to launch an investigation into Jerome Powell. Trump also denied any involvement in the process in his own statement. Nevertheless, the timing of the investigation has reinforced allegations of political interference. These developments have increased uncertainty in the markets.

Powell-White House Tension Turns into Open Conflict

• “Fed Spokesman” Nick Timiraos wrote that the investigation into Powell has turned into an open conflict with the White House. According to Timiraos, Powell made legal preparations by agreeing with a major Washington law firm before receiving an official subpoena. Although Powell’s term ends in May, he has the right to remain on the Fed Board of Governors until 2028. This was interpreted as the possibility of not leaving room for the Trump administration.

Senior Republican senators warned that threatening to impeach Powell could backfire. Senators Tillis, Murkowski, and Cramer said such a move could make it harder for Trump’s Fed nominees to gain Senate approval. They emphasized that the investigation could undermine institutional stability. The possibility of Fed approval processes becoming gridlocked was raised.

• Three former Fed Chairmen and four former US Treasury Secretaries strongly criticized the investigation into Powell. The statement warned that the process could seriously undermine the Fed’s independence. Names such as Janet Yellen, Ben Bernanke, and Alan Greenspan were included in the statement. Former officials noted that political pressure could weaken long-term market confidence.

Bessent: Powell Investigation Poses Risk to Markets

According to Axios, Treasury Secretary Scott Bessent warned President Trump that the investigation could have negative consequences for financial markets. Bessent said the uncertainty could put pressure on bond and credit markets. This warning from within the administration drew attention to the economic dimension of the investigation. Concerns about Fed independence have intensified in the markets.

Fed Member Williams: Interest Rate Cut Unnecessary in the Near Term

New York Fed President John Williams said there is no need for an interest rate cut in the near term. Stating that he expects the US economy to remain healthy in 2026, Williams said growth could be in the range of 2.5–2.75% this year. He emphasized that inflation must be brought down to the 2% target in a controlled manner. The statements confirmed the Fed’s cautious stance.

US Increases Pressure on Iran and Greenland

President Trump announced that countries trading with Iran will be subject to a 25% tariff on trade with the US. The U.S. State Department called on its citizens to leave Iran immediately. Iranian Parliament Speaker Kalibaf said they were open to negotiations but also prepared for war. During the same period, the U.S. intensified its diplomatic contacts with Denmark regarding Greenland.

Trump Warns Supreme Court on Tariffs

Trump toughened his message to the Supreme Court, saying that a negative decision on tariffs would result in unacceptable costs. He argued that such a decision could lead to hundreds of billions of dollars in paybacks. According to Trump, this amount, combined with companies’ investments in factories and equipment, could reach trillions of dollars. The statements heightened tensions between the executive and judicial branches.

Fed Chair Candidate Rick Rieder: Interest Rate Cut of Up to 3% Should Be Supported

Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, is reported to be meeting with President Trump this week as a potential successor to Fed Chair Jerome Powell. In an interview with CNBC, Rieder reiterated his support for lowering the US policy rate to 3%. He stated that this step would reduce borrowing costs by at least 50 basis points. According to Rieder, the 3% level is closer to the neutral interest rate that neither stimulates nor suppresses the economy.

Digital Asset Market Transparency Act to be Discussed on Thursday

Senator Cynthia Lummis announced that the text of the Digital Asset Market Transparency Act is ready and will be reviewed on Thursday. Lummis stated that the bill was drafted with bipartisan support. She argued that the bill would keep innovation in the US and strengthen consumer protection. She called on Democratic senators not to abandon the process.

SEC Chairman: US Aims for Global Leadership in Crypto Regulation

SEC Chairman Paul Atkins said the US has made significant progress in crypto asset regulation. He described the “Genius Act,” which provides a clear framework for stablecoins, as a historic step. Atkins said Trump’s goal was to make the U.S. the world’s crypto hub. Regarding the possible seizure of Venezuela’s Bitcoin assets, he said the decision was outside the SEC’s purview.

Developer Consensus Between DeFi and TradFi in the U.S. Senate

It was reported that an incomplete draft of the market structure law by the US Senate Banking Committee is circulating. The draft highlights a compromise reached between DeFi and TradFi regarding the protection of software developers. Section 601 aims to protect developers from regulatory arbitrariness. It was noted that the parties reached an agreement following closed-door discussions.

Grayscale Updates Evaluation List for First Quarter of 2026

Grayscale has updated its list of digital assets it is evaluating for future investment products. Thirty-six new altcoins were added to the list, with candidates grouped under the headings of smart contracts, finance, artificial intelligence, consumption-culture, and public services. Smart contract platforms and finance-focused assets stood out. Grayscale emphasized that this list does not constitute a definitive investment decision.

Uniswap Founder: Celebrity Blockchain Scams Are Extremely Stupid

Uniswap founder Hayden Adams said that it makes no sense for celebrities and politicians to commit fraud via blockchain. According to Adams, celebrities can generate sustainable income by issuing tokens without resorting to rug pulls. He noted that methods such as maintaining stable liquidity pools, community events, and governance votes are healthier. He underscored the critical importance of transparency and risk disclosure.

Flow: Fake FLOW Tokens Recovered, Destruction on January 30

The Flow Foundation announced that all fake FLOW tokens created as a result of the attack have been recovered. The tokens have been isolated on the chain and will be destroyed on January 30, 2026. The process was carried out under the temporary authority of the Community Governance Committee. Coinbase, Kraken, and Gate have resumed deposit and withdrawal operations.

WLFI Markets Launches First Weekly Reward Program

World Liberty Financial announced the start of the first reward week on the WLFI Markets lending platform. Users can earn $WLFI token rewards by depositing $USD1. Rewards will increase weekly based on the amount deposited. The platform runs on the Dolomite infrastructure.

Tether Freezes $182 Million USDT on the Tron Network

Tether has frozen a total of $182 million USDT across five separate addresses on the Tron network. The transaction was carried out in accordance with the wallet suspension protocol implemented under OFAC compliance. The total amount of USDT frozen by mid-2025 has exceeded $3 billion. USDT’s global market share is approximately 64%.

Pi Network Releases SDK That Reduces Payment Integration to 10 Minutes

Pi Network has introduced a new library that allows developers to complete payment integration in 10 minutes. The new SDK combines front-end and back-end processes into a single flow. Support is provided for JavaScript, React, Next.js, and Ruby on Rails. The goal is to increase ecosystem usage by reducing the developer burden.

SolanaFloor: Serious Functionality Issues Identified in SHDW Application

SolanaFloor announced that it identified significant issues after testing the SHDW privacy application. It was noted that transfers did not ensure privacy and that swap funds could not be withdrawn. It was stated that support channels were insufficient prior to the project’s token launch. Users were urged to exercise extreme caution.

SEC Extends Review Period for PENGU and T. Rowe Price Crypto ETFs

The SEC extended the review period for the Canary PENGU ETF and T. Rowe Price active crypto ETF applications. The PENGU ETF aims to provide access to the Pudgy Penguins NFT ecosystem. The T. Rowe Price ETF plans to be an actively managed multi-asset structure. The SEC also began soliciting public comments on Grayscale CoinDesk Crypto 5 ETF options.