The crypto market wobbled on Friday like a degen trying to stand up after a liquidation, as trading volumes cooled off and Bitcoin and Ethereum dipped despite earlier gains. Bitcoin, after hitting $94,600 on Wednesday, hovered around $95,300—a 4.6% weekly rise per CoinGecko. Ethereum climbed 5.9% to $3,250 over the same period. Trading volumes for both assets fell sharply: Bitcoin's dropped 27% to $65 billion, and Ethereum's fell 32% to $54 billion, according to CoinGlass. This downtrend also hit Solana, XRP, and Dogecoin, leaving the rest of the altcoin squad looking like they were waiting for the signal that never came.
The volume slump follows Coinbase pulling support for a crypto market structure bill after weeks of lobbying in D.C., amid rising tensions between Democratic lawmakers and the SEC over its treatment of crypto firms. Coinbase CEO Brian Armstrong expressed optimism on Fox Business, stating, "I'm still quite optimistic that this bill is going to get done in a very bipartisan and strong way," while deferring to the Senate on next steps. On Thursday, critics blasted the SEC in a letter to Chair Paul Atkins, probably hoping someone there actually reads their mail.
Analysts like Carlos Guzman of GSR noted the rally had coincided with a new version of the CLARITY Act, but the Senate Banking Committee delayed markup efforts on Wednesday. Guzman highlighted other factors, including Middle East geopolitical tensions from Iran protests and President Trump's pressure on the Fed. Fed Chair Jerome Powell warned of efforts to undermine the central bank's independence after DOJ subpoenas related to his testimony on a multi-billion dollar renovation. Notably, stocks fell while crypto and precious metals advanced, proving that when traditional markets get the jitters, the digital gold crowd feels like the smartest kid in class.
Spot Bitcoin ETFs have seen consistent inflows since Monday, pulling in $1.8 billion over four days, per CoinGlass. Wintermute strategist Jasper De Maere observed that participation remains narrow, with Wall Street doing the heavy lifting: "Retail has been largely absent, with activity staying subdued even as prices climb." While Bitcoin headlines may draw retail back, this rally is primarily institutional and ETF-driven. A new regime where political announcements trump internal metrics is challenging Bitcoin's four-year cycle; equities rallied in 2025 while Bitcoin lagged, signaling markets driven by liquidity and policy timing over broad risk appetite. Investors appear to defer the typical late-cycle phase from early 2026, basically hitting the snooze button on the cycle clock.
Meanwhile, Iran's economy faces unrest and a collapsing currency, pushing crypto activity tied to the country to nearly $7.8 billion in 2025, per Chainalysis. The analytics firm notes digital assets serve as both a financial escape valve for civilians and a channel for state-linked actors under sanctions, turning crypto into the ultimate geopolitical Swiss Army knife.
CME Group will add Cardano, Chainlink, and Stellar futures on February 9, pending regulatory review. The contracts—ADA, LINK, and XLM—will come in standard and micro sizes: 100,000 ADA (10,000 micro), 5,000 LINK (250 micro), and 250,000 XLM (12,500 micro). Because nothing says "institutional adoption" like letting Wall Street trade tiny fractions of altcoins while retail watches from the sidelines with a bag of popcorn.
