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The post Why Crypto Market Is Down Today: Bitcoin, Altcoins Slide After Fed Update appeared first on Coinpedia Fintech News

Bitcoin and altcoins are falling today, extended selloff after the Federal Reserve delivered its latest policy decision, keeping interest rates unchanged. While the move itself was widely expected, markets reacted to the absence of fresh dovish signals, prompting traders to reduce risk across speculative assets.

Bitcoin slipped as selling pressure resurfaced near key resistance, dragging major altcoins lower. The price action suggests caution rather than fear, a market adjusting to tighter liquidity conditions and fading demand rather than reacting to a single negative headline.

Liquidation Data Confirms Leverage Reset, Not Panic

Liquidation data shows that derivatives markets have amplified the move though forced leveraging. In the past 24 hours, BTC liquidations exceeded $134 million and ETH liquidations surpassed $50 million. The concentration of liquidations in BTC and ETH shows that leveraged long positions have flushed, while smaller altcoins saw comparatively lighter forced exits. 

This profile is typical of a controlled leverage reset, not a market-wide capitulation. Notably, liquidation levels remain below historical extremes, suggesting selling pressure is mechanical rather than emotional.

Macro and News Factors Add to Risk-Off Tone

The Fed’s decision to hold rates steady removed a potential catalyst for risk assets. With no clear signal of imminent rate cuts, traders have shifted into a more defensive posture. Meanwhile, capital continues to rotate toward U.S. equities and gold, both of which are outperforming crypto. This divergence has historically coincided with consolidation or corrective phases for Bitcoin, especially when internal liquidity conditions are weak.

Without supportive macro tailwinds, crypto markets remain vulnerable to downside probes.

On-Chain Liquidity Signals Point to Liquidity Exit

On-chain data shows the sell-off is being driven by liquidity leaving the system, not fear-driven dumping.

The Coinbase Premium Index remains deeply negative near -0.16%. This indicates that Bitcoin is consistently trading at a discount on Coinbase relative to offshore exchanges, a sign of institutional selling during U.S. hours. 

At the same time, stablecoin market capitalization is shrinking, with more than $2.2 billion recently exiting circulation and a broader decline exceeding $5.5 billion from peak levels. Instead of rotating into stablecoins to buy dips, capital is moving back into fiat and other asset classes.

This combination, negative Coinbase premium and shrinking stablecoin supply, historically suppresses recovery attempts and limits upside follow-through. The current data shows buyer participation without conviction, a market state where rallies lack follow-through and are vulnerable to renewed selling pressure.

Bitcoin Price Action: Key Levels To Watch

Bitcoin price action showcases weakness and may see further decline in the coming sessions. Based on the chart structure, BTC price may retest the demand zone of $86,000 and grab liquidity from there. Afterward, an upswing toward $88,000 followed by $90,000 could be anticipated ahead.

In the near term, BTC price may continue to underperform and may influence other altcoins to face selling pressure. As long as BTC price remains below $90k, upside moves are likely to be corrective.

What Comes Next for Bitcoin and Altcoins

The near-term outlook hinges on liquidity and demand returning. If the market sentiment remains positive and stablecoin supply expands alongside the positive coinbase premium, a significant bullish market could be seen. Until these signals align, rallies are likely to face resistance. For now, the market remains defensive. The next direction will depend less on headlines and more on whether capital returns.

FAQs

Why did Bitcoin and altcoins fall after the Federal Reserve decision?

Bitcoin and altcoins fell because the Fed held rates steady without signaling cuts, reducing risk appetite and pushing traders away from speculative assets.

Is the current crypto selloff a sign of panic or a normal correction?

This move reflects a leverage reset, not panic. Liquidations remain moderate, showing mechanical selling rather than fear-driven capitulation.

How does shrinking stablecoin supply affect the crypto market?

Declining stablecoin supply signals capital leaving crypto, reducing liquidity and making rallies weaker and more vulnerable to pullbacks.

The post Metaplanet to Raise $137M to Increase Bitcoin Holdings appeared first on Coinpedia Fintech News

Tokyo-listed Metaplanet has launched a $137 million stock offering to fund further Bitcoin purchases, reinforcing its aggressive strategy to build one of the largest corporate Bitcoin treasuries. The company plans to issue new shares and stock acquisition rights to raise about ¥20.7 billion, with most proceeds earmarked for buying more Bitcoin and supporting its Bitcoin income business. Metaplanet, already among the top global corporate holders of Bitcoin, aims to deepen its exposure as institutional interest in digital assets grows.

The post Why Bitcoin and Ethereum Face Volatility With Friday’s $9B Options Expiry appeared first on Coinpedia Fintech News

Bitcoin and Ethereum are approaching a critical inflection point as one of the largest options expiries of the month collides with fragile on-chain market structure. More than $8.3 billion in Bitcoin options and $1.2 billion in Ethereum options are set to expire on January 30, placing unusual pressure on price behavior at a time when leverage is elevated and spot momentum is fading. With monetary policy uncertainty still fresh in markets and liquidity thinning, this expiry could act as a volatility trigger rather than a trend signal.

Bitcoin Options Expiry Keeps BTC Anchored Near $90K

Bitcoin is moving into the January 30 expiry with more than $8.3 billion in notional options open interest, and the way that exposure is distributed explains why price has been pinned just below $90,000 despite repeated attempts to break higher. Deribit’s option chain shows a heavy concentration of contracts clustered between $85,000 and $95,000, with $90,000 clearly standing out as the max pain level, the strike where the largest portion of options would expire worthless. The put-to-call ratio near 0.54, which signals that positioning remains net bullish, yet increasingly hedged. 

At the same time, Deribit data shows that futures open interest has remained steady, confirming this is not a broad deleveraging event. Instead, exposure has shifted toward options-based positioning, where traders are expressing views through structured trades rather than outright leveraged futures. When exposure becomes this concentrated around nearby strikes, price becomes more sensitive to hedging flows rather than organic spot demand.

As BTC trades near $90K, market makers are forced to dynamically hedge both sides of the book, absorbing momentum on rallies and cushioning dips. That hedging activity can suppress follow-through in either direction until the expiry clears or price decisively escapes the high-OI zone.

On-chain data reinforces this picture of balance rather than strength. Binance’s 7-day net taker flow remains only marginally positive, showing that buyers are present but not aggressive. In prior bullish expansions, sustained upside only emerged when taker buy volume expanded decisively and consistently absorbed sell pressure.

Once the options roll off, this equilibrium is likely to break. If BTC holds above $90K post-expiry, suppressed upside flows could unwind quickly as hedges are lifted. Conversely, a clean rejection below that level risks triggering short-term downside as protective puts move into the money and hedging pressure flips direction.

Ethereum Options and On-Chain Leverage Signal Higher Volatility Risk

Ethereum is entering the same expiry window with approximately $1.27 billion in notional options open interest, and while smaller than Bitcoin’s, the risk profile appears more fragile. Deribit data shows ETH’s put-to-call ratio around 0.74, indicating a higher demand for downside protection relative to Bitcoin. The max pain level sits near $3,100, while price continues to consolidate well below its prior highs.

The option chain reveals a wider dispersion of strikes, but with notable put interest building below current levels. This suggests traders are less confident in ETH’s ability to hold support cleanly and are actively hedging against sharper downside moves. Unlike Bitcoin, where positioning remains compressed and controlled, Ethereum’s structure allows for more asymmetric price reactions once hedging flows intensify.

On-chain leverage data adds another layer of concern. CryptoQuant shows Ethereum’s estimated leverage ratio on Binance at record highs, signaling a heavy concentration of leveraged positions still embedded in the system. Elevated leverage alone is not bearish, but when combined with unstable taker behavior, it increases the probability of abrupt price dislocations. Currently, ETH price sits around $2920 and faces bearish pressure. For Ethereum, the crucial zone is to sustain above $3,080 for a major short covering move. 

The post Metaplanet Raises $137 Million to Buy Bitcoin Despite 18.6% Loss appeared first on Coinpedia Fintech News

Metaplanet, a Tokyo-listed investment firm, is doubling down on its Bitcoin strategy even as prices stay below $88,000. 

The company has announced a $137 million capital raise through a third-party allotment to buy more Bitcoin, showing strong long-term confidence in the digital asset.

Metaplanet Raises $137M to Buy More Bitcoin

According to a company filing, Metaplanet revealed plans to raise 21 billion yen (around $137 million) through a third-party allotment. The company will issue 24.52 million new common shares at an issue price of 499 yen ($3.35) per share, aiming to raise about 12.24 billion yen ($82 million) from the share sale alone.

Alongside this, Metaplanet will issue 159,440 stock acquisition rights, with each right allowing investors to buy 100 ordinary shares. Meanwhile, the allotment and payment date for both the shares and stock rights is scheduled for February 13, 2026.

The company stated that most of the funds raised will be used to buy more Bitcoin, continuing its Bitcoin-focused treasury strategy launched in 2024.

Bitcoin-First Strategy Continues Despite 18.6% Loss

Metaplanet has been one of Japan’s most aggressive corporate Bitcoin buyers, closely following the footsteps of Michael Saylors’ Strategy. In late 2025, the firm purchased 4,279 BTC for $451 million. 

As of now, its total Bitcoin holdings stand at 35,102 BTC, valued at around $3.08 billion.

However, with Bitcoin currently trading below $88,000, Metaplanet is facing an unrealized loss of roughly 18.6%, based on an average purchase price of $107,716 per BTC. 

Despite this, company leadership remains committed to its long-term Bitcoin accumulation plan and has set a bold target of 210,000 BTC by 2027.

Metaplanet’s Stock Price Plunge 

Following this announcement, Metaplanet’s share price has seen a drop of 4%, trading at 456 yen, reflecting short-term concerns about share dilution.

At the same time, Bitcoin price also slipped by more than 2% in the last 24 hours, trading near $87,716, though trading volume rose by 8%, signaling active market participation.

The post Gold Price Leads While Bitcoin Underperforms in Risk-Off Markets – Here’s Why appeared first on Coinpedia Fintech News

Gold has once again become investors’ first choice during uncertain times. Rising inflation, slowing global growth, and ongoing geopolitical tensions have pushed money into traditional safe-haven assets.

In 2026, gold prices crossed $5,500 per ounce, marking an 18% gain this year and more than 60% growth since 2025. Central banks continue to buy gold aggressively, especially countries looking to reduce their dependence on the U.S. dollar. This steady demand has strengthened gold’s role as a trusted store of value when confidence in paper currencies weakens.

Bitcoin Price Lags as Investors Turn Cautious

Bitcoin has remained stable compared to risk assets, but it has not matched gold’s strong rally. BTC has slipped below $90,000, wiping out its gains for the year.

During recent global tensions, investors moved money quickly into physical gold. In fact, gold added value in a single day nearly equal to Bitcoin’s entire market cap, showing where capital flows during moments of fear.

Economist Explains Gold vs Bitcoin During Market Stress

Economist Dr. Bob Murphy, speaking on a podcast with Anthony Pompliano, explained why gold is currently leading Bitcoin.

According to Murphy, gold and Bitcoin are not rivals, but assets that react differently to risk. Both benefit when investors expect money printing or currency weakness. However, during extreme uncertainty, gold feels safer to many because of its thousands-year history and global acceptance.

Bitcoin, while innovative, still depends on technology, internet access, and newer infrastructure, which can make investors cautious in crises.

Murphy stressed that Bitcoin’s underperformance does not weaken its long-term outlook. Instead, it reflects how investors behave when fear rises. In stressful moments, people prefer what they know best, and gold fits that role.

Central Bank Gold Buying Signals Global Shift

Murphy also pointed to a changing global financial system. Many countries are preparing for a future where the U.S. dollar is no longer dominant.

Central banks, especially outside Western economies, are increasing their gold reserves. This trend shows growing concern about the current monetary system rather than a complete rejection of fiat currencies.

Federal Reserve Policy and Government Influence

The conversation also touched on the Federal Reserve. Murphy argued that the Fed cannot be fully independent because its decisions directly affect government debt and borrowing costs.

Interest rate policies, he said, are closely tied to fiscal needs, making political influence hard to avoid.

Despite gold’s recent strength, Murphy remains optimistic about Bitcoin. He described it as a younger and more volatile asset that is still evolving.

Over time, Bitcoin may grow alongside gold rather than replace it. Both assets, he believes, will continue to attract investors looking for protection outside traditional financial systems.

The post California’s 2026 Billionaire Tax Plan Raises Concerns, Tech Leaders Exit appeared first on Coinpedia Fintech News

California, which generates about $4.1 trillion and contributes over 14% of the U.S. GDP, is back in the spotlight. A new proposal called the 2026 Billionaire Tax Act aims to tax the ultra-rich with a 5% levy on net worth, sparking serious debate. 

However, the plan has raised fears of wealth leaving the state and long-term economic harm.

What the Billionaire Tax Act Proposes

As per the 2026 Billionaire Tax Act, the proposal targets around 200 California residents with net assets of $1 billion or more. Backed by the healthcare union SEIU-UHW, the plan aims to raise nearly $100 billion. 

However, the funds would support healthcare, education, and food programs as federal funding faces possible cuts.

The proposal is backed by labor groups and includes a controversial tax on unrealized wealth, meaning individuals could be taxed even if they have not sold assets.

Supporters argue that ultra-wealthy individuals should contribute more during times of economic pressure. They believe the tax could help reduce inequality and protect essential public services.

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Why Tech Leaders Are Worried

The biggest concern comes from the tax structure itself. The proposal includes a tax on unrealized gains, meaning billionaires could be taxed on wealth they have not sold or turned into cash. It also includes retroactive rules, which critics say create fear and legal uncertainty.

Many founders warn that this could force them to sell company shares just to pay taxes. This could reduce their control over businesses they built and disrupt long-term innovation.

Early Signs of Wealth Leaving California

Even before the proposal reaches the June 2026 deadline, its impact is already showing. Reports suggest that major tech figures like Larry Page, Sergey Brin, and Peter Thiel have moved, or plan to move, to Florida and Texas, where taxes are lower.

Because of this, billions of dollars may already be leaving California. Many worry the state could lose tax money instead of gaining it. Critics like Naval Ravikant and Governor Gavin Newsom say the tax could push talent away and hurt the economy. 

Early polls show 53% support, but support drops to 41% once people learn it taxes unrealized wealth and voting shares.

Never Miss a Beat in the Crypto World!

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FAQs

What is the California Billionaire Tax Act 2026?

The 2026 Billionaire Tax Act proposes a 5% tax on Californians with $1 billion+ in net worth to fund healthcare, education, and food programs.

What is an unrealized wealth tax?

An unrealized wealth tax means billionaires could be taxed on assets they haven’t sold, like stocks or company shares, not just cash income.

Could the tax cause billionaires to leave California?

Yes. Experts warn the tax may push wealthy residents to lower-tax states, potentially reducing investment and economic growth in California.

How much money could California raise from this tax?

The proposal aims to raise nearly $100 billion, funding public services amid possible federal funding cuts while addressing wealth inequality.

The post XRP News Today: Ripple Reaffirms XRP’s Central Role as Institutional Demand Grows appeared first on Coinpedia Fintech News

Ripple is moving decisively to shut down speculation that XRP is being sidelined as the company broadens its reach across custody, stablecoins, and institutional finance. Despite rapid expansion into new financial products, Ripple executives have reiterated that XRP remains fundamental to the company’s long-term vision and operational strategy.

Recent market chatter suggested that newer initiatives, particularly Ripple’s RLUSD stablecoin and institutional services, could dilute XRP’s importance. Ripple leadership has pushed back firmly, stressing that these developments are designed to strengthen XRP’s utility, not replace it.

Leadership Reinforces XRP’s Importance

Ripple executive Reece Merrick recently reaffirmed that XRP will continue to sit at the heart of Ripple’s strategy. His remarks echo long-standing statements from CEO Brad Garlinghouse, who has repeatedly emphasized that XRP acts as the connective layer across Ripple’s expanding ecosystem.

According to Ripple’s leadership, the company’s evolution beyond cross-border payments is not a pivot away from XRP, but a scaling of its use cases. Whether through liquidity, settlements, or enterprise finance, XRP is positioned as a core component that ties Ripple’s products together.

More Clarity Coming for the Community

Ripple plans to further address XRP’s role during an X Spaces session scheduled for February 11, 2026. The event, featuring Ripple President Monica Long, is expected to provide a deeper look into how the company’s broader infrastructure strategy continues to revolve around XRP. Ripple has framed the session as a direct response to community questions as it transitions into a full-spectrum blockchain infrastructure provider.

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Market Signals: ETFs, Technical Levels, and Volatility

Market activity around XRP is heating up alongside these reassurances. According to Whale Factor, XRP is testing a key trendline resistance, setting the stage for heightened volatility. A breakout could push prices toward $2.10, while rejection may trigger a pullback toward the $1.80 support zone.

Institutional interest is also becoming more visible. Analyst Chad Steingraber noted that XRP ETFs recorded nearly $10 million in volume within the first hour of trading, with Grayscale taking an early lead, an indicator that institutions, not retail traders, are driving demand.

XRP Price Action Remains at a Crossroads

Despite the positive signals, XRP continues to struggle below the $2.00 mark. The price recently dipped into a short-term bearish zone, with support forming near $1.88–$1.86. Technical indicators suggest weakening momentum, but a move above $1.95 could quickly reopen a push toward $2.00 and beyond.

Overall, Ripple’s messaging and market developments suggest that XRP remains firmly embedded in the company’s future, while price action signals that a decisive move may be close.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

FAQs

Is XRP still important to Ripple’s long-term strategy?

Yes, XRP remains central to Ripple’s vision, acting as the connective layer across payments, custody, and institutional finance products.

How does XRP support Ripple’s expanding services?

XRP enables liquidity, cross-border settlements, and enterprise finance, serving as the core token linking Ripple’s broader infrastructure.

What does XRP’s current market activity indicate?

XRP is testing key resistance near $2.00, with institutional demand rising and potential volatility signaling a decisive price move ahead.

How are institutions investing in XRP?

Institutional demand is rising, with XRP ETFs and Grayscale leading early trading, showing professional investors are driving growth.

What should XRP holders expect in 2026?

Expect more clarity on XRP’s strategic role, market volatility, and broader adoption as Ripple expands its blockchain infrastructure.

The post Ethereum Price Braces for FOMC Volatility as Leverage Peaks and Whale Accumulate appeared first on Coinpedia Fintech News

Ethereum price is entering a high-risk, high-impact phase as traders brace for today’s FOMC decision, with price compressed at a key structural zone and on-chain leverage sitting at record levels. While the market broadly expects the Federal Reserve to hold rates steady, uncertainty around Jerome Powell’s forward guidance has pushed ETH into a volatility-sensitive setup, one where positioning matters more than direction. That dilemma sets the stage for a decisive move.

On-Chain Data Flags Elevated Volatility Risk

On-chain data shows that Ethereum’s Estimated Leverage Ratio on Binance is sitting at an all-time high, with the 7-day simple moving average rising to 0.632. In practical terms, this means a growing share of open positions is being funded through derivatives rather than spot buying, a setup that historically increases volatility rather than trend stability.

At the same time, the Taker Buy/Sell Ratio is flashing warning signs. On January 25, the ratio plunged to 0.86, its lowest reading since September, indicating dominant market sell pressure from aggressive traders. Within days, that same metric rebounded sharply to 1.16, the highest daily reading since February 2021, signaling a sudden surge in aggressive market buying.

This kind of rapid flip in taker behavior is critical. It shows that traders are reacting emotionally rather than positioning with conviction, a hallmark of unstable market structure. When leverage is elevated and order-flow direction changes abruptly, price tends to move violently as liquidations amplify both upside and downside moves. Crucially, this behavior is unfolding while Ethereum is consolidating near the $2,800 support zone, after failing to reclaim its previous all-time high near $4,800. 

Until the market establishes clear directional dominance, Ethereum remains highly sensitive to external triggers, with liquidation cascades becoming a real risk rather than a tail scenario.

Whale Accumulation Counters Leverage Risk

Despite elevated leverage,large-scale accumulation remains active beneath the surface. Recent data shows that Bitmine Immersion Technologies significantly increased its Ethereum exposure, lifting total holdings to roughly 4.2 million ETH, alongside total crypto and cash reserves of approximately $12.8 billion. This level of accumulation reflects institutional-scale conviction rather than short-term speculation.

Historically, such accumulation phases tend to align with long-term positioning rather than tactical trades, offering a stabilizing counterbalance to speculative leverage in derivatives markets. This divergence of leveraged traders chasing short-term moves while institutions accumulate quietly often precedes decisive trend resolution.

Ethereum Price Structure Signals a Pivotal Moment

Ethereum’s price chart structure remains technically constructive, but fragile. For months, ETH continued to respect its rising trend structure, with repeated successful defenses above the 200-week moving averages. Each major pullback into this zone has attracted strong demand, forming higher high and higher lows across multiple cycles.

Currently, ETH price is now compressing against a well-defined resistance band that has capped upside attempts in recent months. A clean break above the $3300 hurdle would confirm structural continuation, opening the path toward $3500 followed by $4000 ahead. On the other hand, a dip below $2700 may lead to retesting $2500 in the short-term.

Final Thoughts

With markets pricing a rate pause, Ethereum’s reaction will hinge on Powell’s tone rather than the decision itself. Any hint of extended tightness could pressure leveraged longs and trigger downside volatility. Conversely, even modestly dovish language may force rapid short covering, accelerating upside momentum.

The post South Korea Nears Landmark Crypto Regulation With Digital Asset Basic Act appeared first on Coinpedia Fintech News

South Korea is gearing up to pass its first major crypto law. The ruling Democratic Party has finalized the “Digital Asset Basic Act” and plans to submit it before the Lunar New Year holiday.

The bill sets capital requirements for stablecoin issuers and splits crypto businesses into eight regulated categories.

The Democratic Party’s Digital Asset Task Force met at the National Assembly on Tuesday to lock in key details.

Rep. Ahn Do-geol, task force secretary, said in a press briefing, “We agreed to set the legal capital requirement for stablecoin issuers at least 5 billion won.”

That’s roughly $3.5 million, matching the current capital rules for electronic money businesses under South Korea’s Electronic Financial Transactions Act.

However, lawmakers indicated that final figures will be coordinated further with government authorities before the bill is formally submitted.

Crypto Businesses Split Into 8 Categories

The law groups digital asset businesses into eight types, including wallet services. Two to three high-risk categories will need authorization from financial regulators. The rest only need to register.

TF Chairman Lee Jung-moon said, “We organized eight business categories considering the characteristics of the digital asset market, including wallet services, in addition to the five business types under the Capital Markets Act.”

Virtual Asset Committee In Focus

A new government body called the “Virtual Asset Committee” will oversee crisis response. The Financial Services Commission chairman will lead it. Members include the Bank of Korea deputy governor and vice ministers from the finance and science ministries.

The committee will step in when hacks or system failures hit the market.

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Topics Still in Dispute

Not everything is settled. Lawmakers are still debating who can issue won-denominated stablecoins and whether to cap exchange ownership at 15-20% for major shareholders.

Rep. Ahn said the task force needs “one to two weeks to coordinate with the government” before submitting the final bill.

If passed, South Korea’s Digital Asset Basic Act could set the tone for how Asia regulates crypto in 2026.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

FAQs

What is South Korea’s Digital Asset Basic Act?

It’s South Korea’s first comprehensive crypto law, setting rules for stablecoins, exchanges, wallets, and oversight to improve safety and market clarity.

How does the law regulate crypto businesses?

The bill divides crypto firms into eight categories. High-risk activities need regulator approval, while lower-risk services only need registration.

What is the Virtual Asset Committee and what does it do?

It’s a new government body led by the FSC chair that coordinates crisis responses to hacks, outages, or major crypto market disruptions.

When could South Korea’s new crypto law take effect?

Lawmakers aim to submit the bill before Lunar New Year, with final coordination ongoing. If passed, it could shape Asia’s crypto rules in 2026.

The post XRP Price Prediction 2026: 21Shares Sets $2.69 Bull Case, Warns of Key Risks appeared first on Coinpedia Fintech News

Crypto asset manager 21Shares released its XRP 2026 outlook, projecting a base case target of $2.45, a bull case of $2.69, and a bear case of $1.60 if adoption slows.

The predictions follow a historic run for XRP spot ETFs in the United States.

According to 21Shares, XRP ETFs have pulled in over $1.3 billion in assets under management in their first month. The funds also recorded a 55-day streak of consecutive inflows, breaking all previous records across any asset class.

Why These Inflows Matter More for XRP

At launch, XRP’s market cap was around $113 billion. That’s roughly one-eighth of Bitcoin’s $845 billion valuation when its own ETFs went live.

21Shares pointed out that Bitcoin needed $3 billion in its first month to start moving. XRP has attracted comparable capital with a much smaller float. The result: inflows carry more weight.

On the supply side, exchange reserves have fallen to a seven-year low of 1.7 billion XRP. Institutional buying through ETFs is now running into a retail base that isn’t selling.

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RLUSD Stablecoin Gains Ground

21Shares also highlighted Ripple’s RLUSD stablecoin as a key growth driver.

RLUSD’s market cap jumped over 1,800% in under a year, rising from $72 million to $1.38 billion. The stablecoin now has more than 37,000 holders.

For comparison, Circle’s USDC grew 269% in its first year.

Risks to Watch

The outlook flagged several concerns. ETF inflows could slow or reverse if sentiment shifts. The XRP Ledger also faces competition from Solana, Canton, and other networks targeting real-world asset tokenization.

21Shares warned of a potential “sell the news” scenario if real utility doesn’t show up now that the SEC case is resolved.

XRP is currently trading at $1.93, up 2.31% over the last 24 hours.

Never Miss a Beat in the Crypto World!

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FAQs

What factors could push XRP toward the bull case target?

Sustained ETF demand, rising institutional use, low exchange supply, and growth in Ripple’s payments and stablecoin ecosystem could drive upside.

How do ETF inflows influence XRP price predictions?

ETF inflows increase demand from long-term investors, reducing available supply and making price forecasts more sensitive to capital movements.

Is XRP’s 2026 outlook more bullish than previous cycles?

Yes. Regulatory clarity, ETFs, and growing institutional participation make XRP’s current cycle structurally stronger than past speculative rallies.