Bitcoin ETFs defy market weakness as altcoins diverge

TLDR

• Bitcoin ETFs recorded strongest weekly inflows since October at US$1.42B 
• XRP declined 4.01% and LTC fell 8.25%, as most major altcoins posted losses
• Ethereum staking reached record US$256B with zero exit queue signaling supply tightness
• Privacy coins led by Monero hit new all-time highs above US$800 amid regulatory concerns
• CLARITY Act stalls as Coinbase withdraws support over DeFi and stablecoin restrictions

Introduction

Crypto markets delivered mixed outcomes this week, with institutional ETF participation holding firm. Diverging altcoin performance, record Ethereum staking, and strength in privacy coins underscored continued structural development across the market.

Weekly trading stats as of Monday, January 19th at 11:00 AM AEDT, based on data from TradingView in USD.

Check prices

Bitcoin ETFs are experiencing their strongest institutional demand since October, with US$1.42B in weekly inflows marking a significant return of institutional capital to crypto markets. This surge comes as Bitcoin trading closed the week at US$93,673.14.

The ETF flows represent a crucial inflection point for market sentiment. According to the data, institutional players are using price weakness as an accumulation opportunity, with mid-sized Bitcoin holders adding 110,000 BTC in their largest buying spree since the FTX collapse. Corporate treasuries have also maintained their accumulation strategy, with companies now holding over 1 million BTC collectively.

This institutional backing provides critical support during periods of market uncertainty. The sustained ETF demand suggests that despite regulatory headwinds and short-term volatility, professional investors remain confident in Bitcoin's long-term trajectory. The timing coincides with Bitcoin options open interest surpassing futures for the first time at US$74B, indicating market maturation toward more sophisticated risk management tools.

Check BTC

Bitcoin lifts the market as altcoins struggle against macro headwinds.

The crypto market closed the week on a cautiously optimistic note, though signs of fragility remain beneath the surface. Bitcoin advanced 2.92% to finish at US$93,673.14, supported by steady inflows and a stabilising macro backdrop. Ethereum outperformed with a 5.14% weekly gain, closing at US$3,284.03 as investor appetite rotated back into layer‑one assets. The broader market followed suit, pushing total crypto market capitalisation up 2.23% to US$3.14 trillion.

Not all majors participated in the upswing. Litecoin and XRP both struggled to maintain momentum, finishing the week down 8.25% and 4.01% respectively. 

Despite mixed price action, underlying market structure showed signs of strength. Ethereum staking reached a record US$256B with zero exit queue, indicating unprecedented supply tightness as nearly half of ETH supply becomes locked. Meanwhile, Solana network activity surged with 8.9 million new addresses created in 24 hours, demonstrating continued ecosystem growth despite SOL's 1.1% weekly decline.

The standout performer was Monero, which hit new all-time highs above US$800 as privacy coins rallied amid increasing regulatory scrutiny. This surge reflects growing demand for financial privacy as traditional crypto platforms face tightening compliance requirements.

Check ETH

Check SOL

Political uncertainty weighs on risk assets

Global macro developments created significant headwinds for risk assets this week. US Federal Reserve Chair Powell faces an unprecedented DOJ investigation amid political tensions, threatening central bank independence and creating uncertainty around monetary policy direction. This development drove safe-haven demand to traditional assets while Bitcoin's response remained muted.

Geopolitical tensions escalated with Trump's announcement of 25% tariffs on eight EU nations over Greenland, threatening US$1.5T in trade flows and introducing major volatility risk for already fragile crypto markets with high retail leverage. These developments highlight crypto's evolving relationship with traditional macro factors.

The combination of political pressure on the Fed and trade tensions demonstrates the challenging environment facing risk assets. While Bitcoin has historically benefited from monetary debasement concerns, the current political uncertainty around central bank independence creates a more complex narrative for digital assets as inflation hedges.

Check XRP

Experience seamless trading: Unlock personalised, secure, and efficient OTC crypto transactions.

When it comes to large-scale crypto transactions, trading over the counter (OTC) with us offers a streamlined, secure, and personalised experience that other exchanges simply can't match. Our OTC desk minimises slippage and ensures deep liquidity, so you can execute sizable trades without the worry.

With our expert traders by your side, we tailor each trade to meet your specific goals. We prioritise speed and compliance, meaning you can lock in optimal prices with the comfort of full regulatory assurance.

Book a call with your OTC expert today.

What we're watching

Regulatory developments remain the key catalyst to watch, with the CLARITY Act stalling after Coinbase withdrew support over DeFi concerns and stablecoin yield restrictions. The legislation's fate could significantly impact market structure and innovation in the US crypto sector.

Derivatives positioning is also in focus, with Bitcoin options open interest surpassing futures for the first time. This shift points to a more mature market, but one increasingly sensitive to dealer hedging flows and volatility around major expiry dates.

Finally, sustained capital lock-up across major networks and rising demand for financial privacy suggest supply-side and regulatory dynamics may play a larger role in price discovery over coming weeks.

Stay ahead of crypto market developments and regulatory changes. Trade with confidence on Australia's longest-running exchange at btcmarkets.net.

Super-charge your trading with our world-class API, dedicated support, and VIP benefits.

Our VIP program gives high-volume traders a personalised service, lower fees and priority support. With an Australian-based Account Manager by your side, you’ll get direct assistance, customised fees and higher API limits, so you can move quickly on market opportunities.

Starting from AUD 500,000 in 30‑day trading volume, our three VIP tiers scale with your activity. As you progress, you unlock more – from hands-on support and reduced fees to exclusive events and VIP perks – all designed to give you an edge.

Contact us to become a BTC Markets VIP.

Stay up to date on the latest news in the digital asset space.

Sign up for free and join over 380,000 Australian traders who receive the BTC Markets weekly updates.

Google review

If you've had a great experience with BTC Markets, we'd love to hear from you! Leave us a review.

Feedback

If you have any feedback on our newsletter or want to request specific content, please submit a support ticket, and we will respond shortly.

Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

The information does not purport to be complete, accurate or contain all of the information that a person may require to make a decision. It may also contain forward looking statements, which are subject to known and unknown risks, uncertainties, and other factors. We recommend you obtain professional advice before making any decision with respect to the matters discussed in this document. To the maximum extent permitted by law, BTC Markets will have no liability for any loss or liability of any kind: (i) arising in respect of the information contained (or not contained) on this page; or (ii) arising from a person relying on any information or statement contained on this page. The information provided is only intended for recipients in Australia. This information cannot be reproduced without our prior written permission.