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This Week’s Top Stories
“Coinbase can’t support the Senate Banking Committee crypto market structure bill draft in current form.” – Wednesday, 14 January 2026
- On Wednesday, Brian Armstrong, CEO of Coinbase, tweeted that after reviewing the draft of the bill, Coinbase could not support the legislation in its current form, as they believe there are too many issues.
- Armstrong mentions key concerns, including a de facto ban on tokenized equities, prohibitions on DeFi that would give the government unlimited access to users' financial records, removing the right to privacy. He also mentions draft amendments that would restrict yields on stablecoins, essentially allowing the big banks in the U.S. to “ban” their competition.
- He also said that while he appreciates the work of the Senate, the current form of the bill would be materially worse than the status quo, and that he would rather have no bill than a bad bill. He ended his tweet with remarks that he remains optimistic they will get to the right outcome in the end.
“Tuesday’s CPI data shows that inflation is currently not re-accelerating.” – Tuesday, 13 January 2026
- CPI data rose 0.2 percent from November, bringing the annual inflation rate to 2.7 percent in December from the year before. The overall and core inflation rates of 2.7 percent were cooler than January’s 3 percent and 3.3 percent rates.
- While tariffs continue to be a risk to inflation, it currently looks like inflation is not re-accelerating, and the Core CPI even came in slightly lower than expected for December (2.6 percent vs 2.7 percent YoY).
- The inflation data, however, seemingly does not move the needle for the Federal Reserve regarding their interest rate decision, with the market currently expecting the Fed to hold the rate unchanged at 3.50–3.75 percent.
“Federal Reserve was served with grand jury subpoenas from the DoJ, threatening criminal indictments.” – Sunday, 11 January 2026
- On Sunday, Federal Reserve Chairman Jerome Powell released a statement addressing the grand jury subpoenas that the Fed received from the Department of Justice related to his testimony before the Senate Banking Committee in June 2025. The DoJ is threatening a criminal indictment against Powell because of his testimony about the multi-year project to renovate historic Federal Reserve office buildings.
- Jerome Powell made it clear that he believes these threats are not about his testimony but rather about the Fed's interest rate decisions and course of action, which are based on their best assessment of what will serve the public, rather than following the preferences of the President.
A Quick Crypto Overview: Crypto Market is Up This Week After U.S. Inflation Data
The crypto market traded flat over the weekend and experienced a sharp move to the upside after Jerome Powell’s statement regarding the grand jury subpoenas from the DoJ. However, the move was cut short, and the week started with a red Monday morning. The market began trading higher on Tuesday morning and accelerated further in the afternoon after U.S. inflation data (Core CPI) came in slightly lower than expected. The market seems to have realized that inflation is currently not re-accelerating. While the Fed is not heavily focused on inflation in regard to its interest rate decision, this modest inflation print helped the crypto market rally this week.
Bitcoin is currently trading at $95’600, Ethereum is above $3’300, Solana is at $143, and total crypto market capitalization reached its highest level since November 2025 this week. Bitcoin dominance is up 1 percent this week, while Ethereum dominance is up almost 3 percent, putting Ethereum in an interesting position against Bitcoin. The ETHBTC ratio has been steadily trading higher since the beginning of November.
The S&P 500 reached a new all-time high on Tuesday, trading above 7’000 for the first time in history, while the Nasdaq is still trading below its October all-time high at the time of writing. The Russell 2000 continues to outperform and is reaching new all-time highs daily, trading just shy of 2’700 today. Gold and silver have also reached new all-time highs this week, with silver outperforming gold by a large margin since November. Silver is up roughly 60 percent against gold over the past two months.
Chart of the Week: ETHBTC Move Incoming?
The ETHBTC ratio is looking interesting right now, slowly grinding higher since its low at the beginning of November and is currently up 12 percent over the past two months. Ethereum is up more than 6 percent this week, while Bitcoin is up 5 percent. A look at the spot ETF flows this week reveals a positive picture for both Bitcoin and Ethereum. Market capitalization-adjusted flows were roughly the same on Tuesday and Wednesday, with Ethereum taking the lead by a large margin yesterday. It will be interesting to keep an eye on this dynamic over the coming days and weeks.
