The House of Lords Financial Services Regulation Committee has opened an inquiry into proposed stablecoin rules in the United Kingdom, seeking public input on plans put forward by the Bank of England (BoE) and the Financial Conduct Authority (FCA).
The inquiry will examine how stablecoins could affect traditional financial services such as banking and payments, as well as the opportunities and risks created by their growing use in the UK, the committee said in a Thursday statement.
Lawmakers said the review will assess whether the regulatory frameworks proposed by the BoE and the FCA provide “measured and proportionate responses” to developments in the stablecoin market, according to Baroness Noakes, chair of the committee.
Written submissions from industry participants, experts and members of the public are open until March 11. The committee is scheduled to take oral evidence at a public hearing on Wednesday.
Call for evidence from the Financial Services Regulation Committee. Souce: committees.parliament.uk
Bank of England to finalize systemic stablecoin rules by end of 2026
The inquiry comes as UK authorities continue to refine their approach to stablecoin oversight.
The Bank of England has said advancing stablecoin regulation will be among its top priorities for 2026, alongside work on tokenized collateral and its Digital Securities Sandbox.
Sasha Mills, executive director of financial market infrastructure at the BoE, said the central bank is working jointly with the FCA on a regime for so-called systemic stablecoins, aiming to ensure they meet the same standards as existing forms of money used in the UK economy.
“Our regime proposes to provide systemic stablecoins with a deposit account at the Bank of England while also considering putting in place a liquidity facility to provide a backstop for stablecoin issuers,” she said, speaking at the Tokenisation Summit on Thursday, setting a deadline at the end of the year.
“We aim to finalise the regime for systemic stablecoins, working side-by-side with the FCA, by the end of this year.”
According to the BoE, “systemic stablecoins” are fiat-linked stablecoins widely used in payment activity in the UK, including pound sterling-denominated tokens used in retail or corporate payments, and therefore could pose risks to financial stability. They are required to be fully backed with at least 40% of reserves held in deposits at the BoE.
Mills also said the growing stablecoin use could reduce bank deposits in the country and lead to a reduction in credit provided to the “real economy.”
UK crypto regulations timeline. Source: FCA/Cointelegraph
The inquiry follows recent regulatory developments from the FCA, which has released a final consultation setting out 10 proposals covering crypto markets. The regulator is expected to conclude that process in March, with full implementation targeted for October 2027.
Under the UK’s approach, crypto regulations would be centralized under the FCA, which is both the country’s securities and commodities regulator.
In contrast, the US’s incoming market structure framework, the CLARITY Act, which includes provisions touching payment stablecoins, seeks to create a clear delineation between the jurisdictions of the Securities and Exchange Commission and the Commodity Futures Trading Commission, in relation to crypto assets.
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After failing to sustain above $90,000 the previous day, frustration continued to build among traders as stocks and precious metals smashed records.
In his latest analysis of exchange order-book liquidity, Keith Alan, cofounder of trading resource Material Indicators, had a theory as to why Bitcoin could no longer beat resistance.
“FireCharts shows $BTC price is being suppressed by one entity using a liquidity herding strategy to push price lower, potentially to get their own bids filled, or possible to keep price pinned in the lower end of this range before Friday’s options expiry,” he told X followers on the day.
Alan referred to one of Material Indicators’ proprietary trading tools covering liquidations at key nearby price levels, as well as whale order volume.
BTC/USDT order-book liquidity data with whale orders. Source: Keith Alan/X
As Cointelegraph reported, large-volume entities are known to influence price action using liquidity to shift the market, trapping less experienced traders in the process.
“A significant amount of bid liquidity is concentrating in the $85k – $87.5k range to strengthen support, and potentially provide a foundation for a bounce before the Monthly Close,” Alan continued.
He warned that closing January below the 2026 open level at $87,500 would “serve as the gateway to Bearadise.”
Wyckoff BTC bottom countdown continues
Continuing, pseudonymous trader CW described $86,000 as a “buying wall” provided by whales.
“The gap between the buy and sell walls is narrowing. Volatility is coming,” an earlier X post forecast.
BTC/USD chart with order-book liquidity data. Source: CW/X
Earlier, Wyckoff analysis led commentator MartyParty to predict that Bitcoin would put in a long-term low around the end of the month.
This could see BTC/USD dip below $80,000 — an event that would act as the Wyckoff “spring” event before a dramatic market turnaround.
MartyParty uploaded two charts showing how the event could play out in the coming days.
Bitcoin Wyckoff schematics. Source: MartyParty/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Bitcoin is facing resistance at $90,500, but a positive sign is that the bulls have kept up the pressure.
Several major altcoins are attempting to start a recovery, but are expected to face selling at higher levels.
Sellers are attempting to maintain Bitcoin (BTC) below the $90,500 level, but the bulls continue to exert pressure. Fundstrat managing partner Tom Lee said on CNBC that cryptocurrencies should rise on a weaker dollar, but traders have responded by continuing to pile into gold and silver. Lee suggested that crypto is likely to catch up after the gold and silver rally takes a break.
Market intelligence platform Santiment said in a post on X that social media witnessed more discussions about silver and gold compared to cryptocurrencies on most days of this month. The analysts added that retail traders seem to be open to jumping sectors “based on wherever the latest pumps appear.”
Crypto market data daily view. Source: TradingView
Still, a positive sign in favor of the bulls is that February has seen only three monthly losses since 2013 and a median rise of 12.21%, according to Coinglass data. If history repeats, BTC may rally in February.
Could buyers push BTC and the major altcoins above their resistance levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price prediction
BTC’s relief rally has reached the moving averages, where the bears are expected to pose a strong challenge.
If the price turns down from the moving averages, the BTC/USDT pair may drop to the $84,000 support. Buyers are expected to defend the $84,000 level with all their might, as a close below it may sink the Bitcoin price to $80,600 and eventually to the formidable support at $74,508.
On the upside, a break and close above the moving averages opens the gates for a rally to the $94,789 to $97,924 resistance zone. A close above the resistance zone signals that the corrective phase may be over.
Ether price prediction
Ether (ETH) re-entered the symmetrical triangle pattern on Tuesday, but the recovery is facing resistance at the moving averages.
If the price turns down sharply from the moving averages, the bears will attempt to pull the ETH/USDT pair below the $2,787 level. If they succeed, the Ether price might plunge to $2,623.
Conversely, a close above the moving averages suggests that the market has rejected the breakdown below the support line. That improves the prospects of a break above the resistance line. The pair may then march toward $3,659.
BNB price prediction
BNB (BNB) is attempting to rise above the 20-day exponential moving average (EMA)($897), indicating demand at lower levels.
The BNB/USDT pair might reach the $928 to $959 overhead resistance zone, where the bears are expected to mount a solid defense. If buyers overcome the zone, the BNB price may start a rally to $1,020.
Sellers will have to pull the price below the uptrend line to gain the upper hand. If they manage to do that, the pair might slide to the $790 support. The bulls are expected to vigorously defend the $790 level, as a close below it may resume the downtrend.
XRP price prediction
Buyers are attempting to push XRP (XRP) above the moving averages, but the bears have held their ground.
Sellers will attempt to pull the XRP price below the $1.77 level. If they can pull it off, the XRP/USDT pair may descend to the vital support at $1.61. Buyers are expected to fiercely defend the zone between the support line of the descending channel pattern and the $1.61 level.
If buyers push the price above the moving averages, the pair may reach the downtrend line. The bulls will have to achieve a close above the downtrend line to indicate the start of a new up move.
Solana price prediction
Solana (SOL) turned up from the $117 support on Monday, but the relief rally is likely to face selling at the moving averages.
If the price turns down from the moving averages, the bears will again attempt to sink the SOL/USDT pair below $117. If they manage to do that, the SOL price may tumble to solid support at $95.
Alternatively, a break above the moving averages opens the doors for a rally to the $147 overhead resistance. Buyers will have to clear the $147 level barrier to suggest that the corrective phase may be over.
Dogecoin price prediction
Dogecoin (DOGE) has bounced off the $0.12 support, but the relief rally is expected to face selling at the moving averages.
If the price turns down sharply from the moving averages, it heightens the risk of a break below the $0.12 support. The DOGE/USDT pair may then collapse to the Oct. 10, 2025, low of $0.10.
Contrarily, a break and close above the moving averages points to a possible range-bound action in the near term. The Dogecoin price may swing from $0.12 to $0.16 for some time. A short-term trend change will be signaled on a close above $0.16.
Cardano price prediction
Cardano’s (ADA) bounce off the $0.33 level has reached the moving averages, where the bears are expected to step in.
If the price turns down sharply from the moving averages, the likelihood of a break below the $0.33 level increases. The ADA/USDT pair may then plummet to the support line of the descending channel pattern.
This negative view will be invalidated in the near term if the ADA price continues higher and breaks above the downtrend line. The pair may then rally to the breakdown level of $0.50, where the bears are expected to mount a strong defense.
The moving averages are flattening out, and the relative strength index (RSI) is near the midpoint, signaling a balance between supply and demand. If the price breaks above the moving averages, the advantage will tilt in favor of the bulls. The BCH/USDT pair may then ascend to $631 and later to $670.
Sellers will have to tug the BCH price below the $563 level to complete a bearish head-and-shoulders pattern. The pair may then tumble to $518 and subsequently to the pattern target of $456.
Hyperliquid price prediction
Hyperliquid (HYPE) turned up from the $20.82 support on Jan. 21 and soared above the 50-day simple moving average (SMA) ($25.50) on Tuesday, indicating solid buying at lower levels.
The moving averages are on the verge of completing a bullish crossover, and the RSI has jumped into the overbought zone, signaling that the bulls are back in the game. There is resistance at the breakdown level of $35.50, but if the buyers overcome it, the HYPE/USDT pair may ascend to $44.
Sellers will have to defend the $35.50 level and yank the Hyperliquid price below the moving averages to weaken the bullish momentum.
Monero price prediction
Monero’s (XMR) pullback is facing resistance at the 50-day SMA ($480), indicating that the bears are selling on minor rallies.
The downsloping 20-day EMA ($512) and the RSI near the 46-level signal that the path of least resistance is to the downside. If the price slips below $445, the XMR/USDT pair may complete a 100% retracement of the latest leg of the rally and plunge to the $417 level.
Buyers will have to drive the XMR price above the 20-day EMA to indicate strength. The pair may then climb to $546. The bullish momentum is expected to pick up on a close above the $546 resistance.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Polkadot (DOT) trades at $1.86 with analysts targeting $2.48 resistance by month-end, though bearish MACD momentum and neutral RSI suggest cautious optimism required.
While specific analyst predictions from major crypto KOLs are limited in recent hours, several blockchain analysts have maintained bullish medium-term outlooks for Polkadot. According to recent analyst reports, Alvin Lang stated on January 23rd that “Polkadot (DOT) shows potential for 25% upside to $2.48 resistance level by month-end,” setting a target of $2.48.
Zach Anderson echoed similar sentiment on January 22nd, noting that “Polkadot trades at $1.91 with analysts targeting $2.48 resistance by month-end.” Most recently, Peter Zhang maintained the consensus view on January 26th, observing that “Polkadot (DOT) trades at $1.87 with analysts targeting $2.48 resistance by month-end.”
This analyst convergence around the $2.48 target represents approximately 33% upside from current levels, though technical indicators present a mixed picture for this DOT price prediction.
DOT Technical Analysis Breakdown
Polkadot’s current technical setup reveals conflicting signals that traders should carefully consider. The token trades at $1.86, showing a modest 1.53% gain over the past 24 hours with trading volume reaching $12.36 million on Binance.
RSI Analysis: The 14-period RSI sits at 40.77, placing DOT in neutral territory but leaning toward oversold conditions. This suggests potential for upward momentum without being overbought.
MACD Signals: The MACD indicator presents bearish momentum with a reading of -0.0512 and histogram at 0.0000. This flat histogram suggests weakening bearish momentum, potentially setting up for a bullish crossover.
Bollinger Bands: DOT’s position at 0.19 within the Bollinger Bands indicates the token trades much closer to the lower band ($1.77) than the upper band ($2.27). The middle band at $2.02 represents the 20-day SMA and serves as immediate resistance.
Moving Average Structure: The token trades below all major moving averages, with the SMA 20 at $2.02 providing the nearest resistance. The significant gap to the SMA 200 at $3.12 highlights the longer-term bearish trend that any Polkadot forecast must consider.
Polkadot Price Targets: Bull vs Bear Case
Bullish Scenario
A successful DOT price prediction targeting $2.48 requires several technical confirmations. The immediate path involves breaking above the $1.90 resistance level, followed by reclaiming the $1.93 strong resistance zone.
The critical breakout level sits at $2.02 (SMA 20), where sustained trading above this moving average could trigger momentum toward $2.27 (Bollinger upper band). From there, the analyst-targeted $2.48 level becomes achievable, representing the convergence of multiple technical resistance zones.
Key bullish catalysts include RSI climbing above 50, MACD histogram turning positive, and daily volume exceeding $15 million consistently.
Bearish Scenario
Conversely, failure to hold current support levels could invalidate the bullish Polkadot forecast. The immediate support at $1.83 must hold, with the $1.79 strong support level serving as the next critical defense.
A breakdown below $1.77 (Bollinger lower band) could trigger further selling toward psychological support at $1.50. The bearish case gains credence if RSI falls below 35 and MACD histogram turns more negative.
Risk factors include broader crypto market weakness, reduced ecosystem activity, or failure to maintain parachain auction momentum.
Should You Buy DOT? Entry Strategy
Based on current technical analysis, a layered entry approach appears prudent for this DOT price prediction scenario. Consider initial positions near current levels ($1.85-$1.87) with additional accumulation planned around $1.80-$1.83 if pullbacks occur.
Stop-loss placement: Conservative traders should place stops below $1.75, while aggressive traders might use $1.70 as the maximum risk tolerance level.
Take-profit targets: Scale out partially at $2.00-$2.02 resistance, with remaining positions targeting the analyst consensus at $2.48.
Risk management: Limit DOT exposure to 2-3% of total portfolio given the mixed technical signals and broader market uncertainty.
Conclusion
This DOT price prediction presents a cautiously optimistic outlook despite current technical headwinds. The analyst consensus around $2.48 targets appears achievable within the month-end timeframe, though traders should expect volatility and potential retests of support levels.
The Polkadot forecast hinges on breaking above $2.02 resistance and maintaining momentum through February. While the 33% upside potential appears attractive, the mixed technical signals warrant careful position sizing and strict risk management.
Disclaimer: Cryptocurrency price predictions involve significant risk and market volatility. Past performance does not guarantee future results. Always conduct your own research and consider your risk tolerance before investing.
Polygon (MATIC) trades oversold at $0.38 support with analysts targeting 18-37% upside to $0.45-$0.52 range over next 4-6 weeks despite bearish momentum signals.
Recent analyst sentiment on Polygon remains cautiously optimistic despite current price weakness. According to blockchain analyst Joerg Hiller’s January 26 assessment, “MATIC price prediction suggests potential 18-37% upside to $0.45-$0.52 range within 4-6 weeks as Polygon trades oversold at $0.38 support with mixed technical signals.”
Similarly, analyst Darius Baruo noted on January 24 that “Polygon (MATIC) shows oversold conditions at $0.38 with analyst targets of $0.45-$0.52 within 4-6 weeks, though bearish momentum persists near critical support levels.”
While specific predictions from major crypto influencers are limited in recent days, on-chain metrics suggest MATIC is approaching historically significant support zones that have previously triggered substantial rebounds.
MATIC Technical Analysis Breakdown
Polygon’s current technical setup presents a mixed picture with both bullish and bearish signals competing for dominance. At $0.38, MATIC is trading significantly below all major moving averages, indicating sustained downward pressure.
The RSI reading of 38.00 places Polygon in neutral territory, suggesting neither extreme oversold nor overbought conditions. However, this level historically precedes either a bounce or further decline toward true oversold territory below 30.
MACD analysis reveals concerning momentum patterns with the histogram at effectively zero (-0.0000), indicating stalled momentum. The MACD line at -0.0246 below its signal line confirms bearish momentum remains intact, though the convergence suggests potential trend exhaustion.
Bollinger Band positioning shows MATIC at 0.29 on the %B indicator, meaning the token trades closer to the lower band ($0.31) than the upper band ($0.56). This positioning often precedes mean reversion moves toward the middle band at $0.43.
The Average True Range (ATR) of $0.02 indicates relatively low volatility, which could signal an impending breakout in either direction as compressed ranges often lead to explosive moves.
Polygon Price Targets: Bull vs Bear Case
Bullish Scenario
In the optimistic case, MATIC’s Polygon forecast points to a recovery sequence beginning with reclaiming the SMA 20 at $0.43. This level represents the first major hurdle and would confirm the oversold bounce thesis.
Secondary targets align with analyst projections at $0.45-$0.52, representing the SMA 50 level at $0.45 and a 37% upside potential to $0.52. Technical confirmation would require sustained trading above $0.43 with increasing volume and RSI momentum above 50.
A decisive break above the Bollinger Band upper boundary at $0.56 would signal a more substantial recovery, potentially targeting the psychologically important $0.60 level.
Bearish Scenario
The bearish case for this MATIC price prediction centers on a breakdown below the critical $0.31 Bollinger Band lower support. Such a move would likely trigger algorithmic selling and test the next major support zone around $0.25-$0.28.
Extended weakness could see Polygon retest its recent lows, with the SMA 200 at $0.69 serving as a distant recovery target that appears increasingly unlikely in the near term.
Risk factors include continued crypto market weakness, regulatory uncertainty, and potential competition from other Layer 2 solutions gaining market share.
Should You Buy MATIC? Entry Strategy
For accumulation strategies, the current $0.38 level presents an interesting risk-reward proposition. Conservative buyers might consider dollar-cost averaging between $0.35-$0.40, with a tight stop-loss below $0.31 to limit downside exposure.
More aggressive traders could wait for confirmation of a bounce above $0.40 before entering, targeting the $0.43-$0.45 resistance cluster for initial profits.
Risk management should include position sizing no more than 2-3% of portfolio value given the uncertain technical setup. The ATR of $0.02 suggests appropriate stop-losses should be placed 2-3 ATR units below entry points.
Conclusion
This Polygon forecast suggests MATIC remains in a critical consolidation phase at $0.38 support. While analyst targets of $0.45-$0.52 within 4-6 weeks appear technically feasible, the mixed momentum signals warrant cautious optimism.
The most probable scenario sees MATIC testing lower support around $0.31-$0.35 before potentially mounting a recovery toward analyst targets. Investors should monitor the $0.43 SMA 20 level as the key indicator of trend reversal.
Confidence Level: Medium (60%) for upside targets within the specified timeframe.
Disclaimer: Cryptocurrency price predictions carry inherent risks and should not constitute sole investment advice. Always conduct your own research and consider your risk tolerance before making investment decisions.
Bitcoin mining stocks saw a significant bump on Wednesday after the US winter storm forced some companies to wind down operations, leading to lower block competition and more profitable mining operations.
Shares of several major mining companies posted double-digit gains over the past 24 hours. TeraWulf rose about 11%, Iren Limited gained 14% and Cipher Mining climbed about 13%, according to data from Barchart.
The rally occurred days after the Bitcoin network’s hashrate sank to a seven-month low of 663 exahashes per second (EH/s) on Sunday, a 40% drop in two days due to a severe winter storm battering the US.
The hashrate recovered to 814 EH/s on Wednesday, but has yet to recover to the 1.1 zettahash per second (ZH/s) level before the weekend decline, data from Coinwarz shows.
Bitcoin hashrate in EH/S, one-month chart. Source: Coinwarz
A lower hashrate signals that fewer miners are online, reducing the competition for mining a block on the Bitcoin network, making Bitcoin (BTC) mining more profitable for miners who stay online.
The Bitcoin hash price index, a benchmark for measuring miner profitability through the revenue generated per terahash, also points to more lucrative mining conditions.
The Bitcoin hashprice index rose to $0.040 per terahash per day on Wednesday, up from $0.038 TH/s per day, according to the HashrateIndex.
Bitcoin hashprice index in USD, one-week chart. Souce: Hashrateindex
Bitcoin miners wind down operations amid US winter storm
The improvement highlights how large, well-capitalized mining companies can benefit during temporary network disruptions, while smaller or less efficient operations may be forced offline.
The US winter storm forced multiple Bitcoin mining companies to reduce operations to support the power grid, said Julio Moreno, head of research at data platform CryptoQuant.
This included a daily Bitcoin production decrease to 12 BTC from 22 BTC for CleanSpark, a 16 BTC-to-3 BTC reduction for Riot Platforms, a decline to 7 BTC from 45 BTC for Marathon Digital Holdings and a drop to 6 BTC from18 BTC mined daily by Iren, wrote Moreno in a Monday X post.
Daily Bitcoin production for CleanSpark, Riot, Marathon Digital, Iren. Source: Julio Moreno
The extreme winter weather in the US “punished weak mining operations,” which is another reason for the sharp decline in global hash rate, according to Bitcoin mining ecosystem Braiins.
“Winter punishes poor preparation and rushed decisions,” wrote Braiins in a Tuesday X post, warning miners that most equipment damage happens when mining machines are restarted in freezing temperatures, or the facilities lack proper airflow and temperature control.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Opinion by: Annabelle Huang, co-founder and CEO of Altius Labs
For centuries, the world’s traders and speculators have pursued one thing above all else: alpha. Not just returns, but an edge — a structural advantage that lets them capture value before everyone else. In modern times, they’ve achieved this through speed and precision, often beating the competition by mere nanoseconds.
As markets migrate to blockchain rails, however, the nature of alpha itself is shifting. Future alpha won’t come from co-locating servers next to an exchange or shaving nanoseconds off fiber routes. Rather, it will emerge from using onchain infrastructure in unique ways.
High-frequency trading (HFT) firms built empires out of physical ingenuity. Jump bought real estate near the Chicago Mercantile Exchange’s data center in Aurora so it could receive and transmit faster than its competitors. Beyond location, FPGA chips, custom hardware and private fiber networks have all served the same purpose: to give trading firms as many extra advantages as possible.
In that world, alpha was a hardware arms race. The companies that engineered faster connections and smarter routing dominated. As trading increasingly moves into blockchain-based environments, physical constraints dissolve. There is no co-location in decentralized finance, given the decentralized setup. You can’t build your firm right next to, say, a Uniswap server, and even if you could, it wouldn’t matter.
Mastering the digital infrastructure
Today’s validators, sequencers and block producers are the blockchain equivalents of the old matching engines at the CME or Nasdaq. The firms that can influence or optimize this layer will gain the kind of structural edge that once came from owning customized trading hardware.
Mastering the new onchain mechanics can take various forms. For example, using the same HFT tricks on a centralized exchange (CEX) and running validators for a decentralized exchange (DEX) enables you to take advantage of price gaps between the two platforms before the public even has a chance to spot them.
Latency arbitrage also has its blockchain analogue in the form of maximal extractable value (MEV), meaning the profit opportunity created by reordering, including or excluding transactions within a block. We’re speaking, in both cases, about a kind of front-running, but the methods rely on completely different infrastructures. Protocols like Flashbots and Skip have formalized MEV into structured, auction-based systems that look eerily similar to the smart order routers of equities trading.
One kind of MEV strategy is the sandwich attack (explained here). Source: Cowswap
The upshot is that high-frequency trading firms have the opportunity to own the rails themselves. In traditional markets, they had to rent access to exchanges, paying fees for co-location and data feeds. Onchain, they can upgrade the entire system’s mechanics by running validators, designing low-latency remote procedure call nodes, participating in governance or creating sequencers for rollups, to name a few ideas.
The alpha comes from building and optimizing the infrastructure that everyone else depends on, rather than just exploiting it.
In many ways, this could blur the old boundary between market maker, exchange and infrastructure provider. The firms that understand how to operate across all three layers will shape onchain market microstructure for decades to come. This is an area where high-frequency trading firms really do have an advantage because they already possess the engineering culture, the capital and the risk frameworks to navigate this kind of terrain.
Early movers are experimenting
The bridge between high-frequency trading and blockchain infrastructure is already forming, and the names involved are familiar.
Meanwhile, Cumberland is contributing real-time crypto market data for the Pyth Network, a decentralized oracle network. The firm also supports crypto infrastructure projects through its Web3 incubator, Cumberland Labs.
Jane Street recently hired crypto unicorn Copper’s former head of infrastructure architecture, Paul Smith. This may be a hint that the HFT firm — which purchased and sold more than $110 billion in cryptocurrencies (including stablecoins) in 2024 — is interested in developing its own blockchain infrastructure capabilities.
It may look like HFT firms are tip-toeing around the edges, but these efforts hint at a profound shift: Instead of waiting for the blockchain space to “grow up,” Wall Street’s most technically sophisticated firms are actively helping it mature.
Why go through the effort?
Of course, there’s still one major obstacle: size. For all of crypto’s innovation, its markets remain small compared to traditional finance. Nasdaq alone regularly processes over $500 billion in daily volume. The entire crypto spot market, at its October peak, touched $230 billion. For a trading firm that turns over tens of billions daily, the economics of redeploying significant capital into onchain markets is hard to justify…at least for now.
Crypto’s market size compared to other sectors in finance in 2023. Even though crypto’s market capitalization has grown to 3.2 trillion since then, it’s still a drop in the bucket. Source: LSEG
That limitation is temporary. Stablecoins are steadily injecting real liquidity into blockchain systems, and tokenized real-world assets (RWAs) promise to bring much more. Bond settlements, cross-border payments and corporate cash management — when real financial activity moves onchain, the liquidity ceiling disappears. We could be looking at trillions in daily value transfer within the decade.
Skeptics will argue that blockchain still lacks the maturity, compliance and reliability that institutional finance demands. They said the same thing about electronic trading in the 1990s. Back then, floor traders mocked early algorithmic systems as toys. Two decades later, nearly all trading is electronic, and the firms that dismissed the shift no longer exist.
You know what they say about history rhyming. The smartest players on Wall Street recognize the tune already. The next frontier of alpha isn’t hidden inside a data center in Chicago or a cable running under the Atlantic. It’s embedded in blockspace — in how it’s produced, ordered and monetized.
Opinion by: Annabelle Huang, co-founder and CEO of Altius Labs.
This opinion article presents the contributor’s expert view and it may not reflect the views of Cointelegraph.com. This content has undergone editorial review to ensure clarity and relevance, Cointelegraph remains committed to transparent reporting and upholding the highest standards of journalism. Readers are encouraged to conduct their own research before taking any actions related to the company.
This opinion article presents the contributor’s expert view and it may not reflect the views of Cointelegraph.com. This content has undergone editorial review to ensure clarity and relevance, Cointelegraph remains committed to transparent reporting and upholding the highest standards of journalism. Readers are encouraged to conduct their own research before taking any actions related to the company.
Bitcoin (BTC) is attempting to break the resistance at $90,000 on Wednesday, as traders expect volatile price swings before and after the US policy decision on interest rate cuts.
Key takeaways:
The odds of the US Federal Reserve leaving interest rates unchanged today are 100%.
BTC price may drop as low as $65,500 if the key support zone between $80,000 and $84,000 is broken.
100% chance interest rates won’t change
There is nearly a 100% chance that the current interest rates will remain between 3.5% and 3.75%, according to data from Polymarket.
Target rate possibilities for the Wednesday FOMC meeting. Source: Source: Polymarket
Futures market traders have also locked in a 97.2% chance that the Fed will leave interest rates unchanged, with odds for a 25 bps reduction at only 2.8%.
However, market participants say that any bearish price action from unchanged interest rates is already priced in.
Traders have other sources of volatility to contend with, including the Japanese economy, risks of another US government shutdown and the Fed’s move to buy yen, along with Fed Chair Jerome Powell’s speech after the FOMC meeting.
The market will closely watch Powell’s language at the FOMC news conference to see if there is any shift in tone.
“Tomorrow is FOMC and markets are certain that the Fed will leave rates unchanged,” analyst Satoshi Stacker said in a Tuesday post on X, adding:
“All eyes will be on Powell’s press conference and what he suggests the Fed’s plans are for the coming months.”
“If we hear any hints of cuts in March, Bitcoin sends to the moon,” said crypto investor Kiran Gadakh.
Meanwhile, the US dollar index dropped to a four-year low of 95.55 on Tuesday, the lowest level since February 2022.
US dollar index. Source: Cointelegraph/TradingView
Historically, a weakening US dollar has tended to support risk assets such as Bitcoin by easing global financial conditions and improving liquidity.
As Cointelegraph has reported, the BTC/USD pair has often staged major breakouts in the months following sustained declines in the dollar index, particularly when DXY falls below the 96 level.
Analysts highlight key BTC price levels to watch
Traders say Bitcoin bulls must hold the $80,000-$84,000 support band to avoid a deeper correction, forecasting bear market targets as low as $58,000.
The support at $84,000 remains key for bulls, representing the 0.382 Fibonacci retracement level measured from the 2022 bear market bottom at $15,500 to local tops, according to Daan Crypto Trades.
The analyst shared a chart showing that the 0.382 Fibonacci retracement retest has held throughout the entire cycle so far.
While the “price was much quicker to react previously, this is not the case now,” Daan Crypto Trades said, adding:
“While this is technically still a decent level to watch, I’d want to see some action pretty soon to keep the structure alive.”
BTC/USD weekly chart. Source: Daan Crypto Trades
“Bitcoin cannot lose $81K under any circumstances,” said founder and CEO of Alphractal Joao Wedson in a X post on Tuesday.
Losing this level would mean a “capitulation process similar to 2022 may unfold,” Wedson said, adding:
“The next major support would sit around $65,500.”
Bitcoin: Fibonacci-Adjusted Market Mean Price. Source/; Alphractal
On the upside, a key area of interest lies between $90,000 and $94,000, where the 50-day and 100-day moving averages sit.
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Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), framed new participants in emerging sectors like digital assets as a “regulatory perimeter” issue in its Key Issues Outlook 2026 paper, signaling how it intends to regulate crypto entities in the year ahead.
In the report published on Tuesday, ASIC grouped digital assets alongside payments and artificial intelligence-driven financial services, citing risks tied to unlicensed activity, misleading conduct and businesses operating at the edges of existing laws.
Instead of a warning about token adoption or crypto volatility, ASIC focused on structural risks created when emerging financial services fall outside established licensing, disclosure and conduct regimes.
The outlook also emphasized that decisions on whether new classes of crypto products should be brought within formal licensing regimes ultimately rest with the government, stating that its priority for 2026 will be maintaining clarity around licensing boundaries and strengthening oversight at the regulatory perimeter.
Crypto grouped with artificial intelligence and payments
In the outlook, crypto appears alongside AI-powered financial services and payment platforms as part of a broader set of technology-enabled activities that challenge existing regulatory frameworks.
The regulator warned that some companies may actively seek to remain outside of regulation by exploiting unclear boundaries, contributing to what it described as regulatory uncertainty.
“Some entities will actively seek to remain outside regulation, contributing to perceived regulatory uncertainty,” ASIC wrote.
“As a result, ensuring clarity on licensing requirements and maintaining effective perimeter oversight will remain priorities for ASIC in 2026.”
Digital assets flagged amid ongoing enforcement activity
The emphasis on digital asset entities comes as ASIC continues to pursue enforcement actions tied to unlicensed crypto activities.
On Tuesday, an Australian federal court ordered BPS Financial to pay penalties of 14 million Australian dollars ($9.3 million) over misleading claims and unlicensed conduct linked to its Qoin Wallet product.
These developments come as Australia moves to formally fold crypto companies into its existing financial licensing regime.
In November, Australia’s Treasury released draft legislation proposing that digital asset platforms be required to hold an Australian Financial Services Licence, extending core financial services obligations to crypto companies, Cointelegraph previously reported. The proposal would require licensed platforms to act efficiently, honestly and fairly, provide clear disclosures to users and maintain appropriate risk management and compliance controls.
The bill, which advanced through consultation and is expected to reach Parliament, would require crypto trading and custody platforms to meet ASIC’s conduct, disclosure and risk obligations under existing law.
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Animoca Brands Japan has partnered with RootstockLabs to introduce Bitcoin-native decentralized finance (DeFi) tools to Japanese corporations and institutions.
The collaboration aims to localize and deploy Rootstock’s institutional program for the Japanese market, enabling companies to manage Bitcoin (BTC) as part of their corporate treasury strategies while accessing onchain financial tools secured by Bitcoin’s proof-of-work (PoW), according to a Tuesday announcement shared with Cointelegraph.
“In Japan, an increasing number of companies are beginning to utilize cryptoassets as part of their financial and treasury strategies,” said Kensuke Amo, CEO of Animoca Brands Japan. “Through this partnership, Animoca Brands Japan and RootstockLabs will support corporate adoption of cryptoassets in a manner compliant with Japan’s regulatory environment.”
The partnership will focus on helping Japanese companies manage Bitcoin as part of their treasury operations, including exploring Bitcoin-based financial tools and services built on Rootstock. The companies said they will also look at ways businesses could use these tools to improve treasury efficiency, while staying within Japan’s regulatory framework.
The two companies will assess the use of Rootstock-based assets such as Rootstock Bitcoin (rBTC), a Bitcoin-pegged token used in its DeFi ecosystem, and Rootstock Infrastructure Framework (RIF), a suite of utility protocols built on the Rootstock sidechain to scale Bitcoin by enabling faster, cheaper decentralized applications (dApps).
Animoca Brands Japan may offer these services through its Digital Asset Treasury Management Support Service.
Japanese companies have shown growing interest in holding Bitcoin as a long-term strategic reserve. Metaplanet is the most prominent corporate adopter of a Bitcoin treasury strategy in the country, with a balance of 35,102 BTC worth about $3.09 billion, according to BitcoinTreasuries.NET.
Other publicly traded Japanese companies that have built Bitcoin positions include NEXON Co., Ltd., which holds about 1,717 BTC, followed by Remixpoint with roughly 1,411 BTC and Anap Holdings Inc. with around 1,347 BTC.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
