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ETF inflows reshape market positioning

Exchange-traded funds opened 2026 with unusually strong inflows, suggesting a broader change in how investors are allocating risk. Data shows roughly $46 billion moved into ETFs within the first six trading days of the year, far above typical January levels.

Historically, January has been a softer period for ETFs due to outflows from the SPDR S&P 500 ETF Trust as investors rebalance after year-end tax strategies. This year, however, inflows into other ETF categories outweighed weakness in SPY, pointing to a wider rotation rather than broad market de-risking.

Industry analysts note that ETF markets entered 2026 after a record year of inflows, with hundreds of billions added in late 2025 alone. The early surge therefore appears to extend an existing structural trend toward listed, low-cost investment vehicles.

ETFs have taken in $46b in first 6 days of year, which is abnormally high to start year, on pace for $158b for month, about 4x the norm. Typically Jan is weak month bc $SPY sees a lot of tax loss harvest money leave (and it is -8b) that came in in Dec, but the industry is booming… pic.twitter.com/2QVOposBMf

— Eric Balchunas (@EricBalchunas) January 12, 2026

Gold, silver and XRP attract new capital

Investor flows have increasingly favored commodities, cash-adjacent funds and digital asset products. Gold and silver ETFs have gained alongside record highs in precious metal prices, reflecting rising demand for liquidity and defensive positioning.

Within crypto-linked products, XRP ETFs have rapidly accumulated assets, reaching multi-billion dollar levels within weeks of launch. Market observers say that regulated crypto funds are becoming an important channel for digital asset exposure and could influence supply dynamics if inflows continue at the current pace.

The broader pattern suggests that capital is rotating into more specialized and liquid ETF structures rather than exiting risk markets entirely.

Implications for 2026 portfolios

The early-year flow data points to a shift in portfolio construction strategies across equities, commodities, bonds and crypto-linked instruments. Investors appear to favor flexible, transparent and targeted ETF exposures as they navigate a more uncertain macroeconomic environment.

Whether these allocations ultimately stabilize or amplify market volatility will depend on future liquidity conditions. For now, ETF structures remain the preferred vehicle for positioning across both traditional and digital asset markets.

The post ETF Inflows Signal Rotation first appeared on The VR Soldier.

Tokenized trading models gain momentum

Tokenized stocks may significantly change how global markets function by enabling continuous trading, fractional share ownership, and faster settlement, according to statements from Coinbase CEO Brian Armstrong.

Armstrong said that blockchain-based representations of equities could allow markets to operate around the clock, making it possible for investors to buy and sell shares at any time rather than being limited to traditional exchange hours. He added that tokenization may allow fractional ownership, enabling smaller investors to access shares that are typically out of reach due to high prices.

Another proposed benefit is real-time settlement. Traditional equity trades can take days to finalize, while on-chain settlement could reduce this to minutes, potentially lowering counterparty risk and freeing capital more quickly.

Tokenized equity markets could also introduce new financial instruments such as perpetual futures and blockchain-native governance models. These changes could alter how investors interact with public companies, particularly if on-chain governance tools gain broader acceptance.

Legal and regulatory questions remain

The concept has generated both support and skepticism within the digital asset community. Some analysts argue that tokenized stocks can improve access, remove intermediaries, and make global participation easier. Others have raised concerns about legal enforceability, regulatory oversight, and the risks associated with tokens that are not issued directly by the underlying companies.

Commentators have also warned that some tokenized equities function as side bets on company performance rather than as direct claims on corporate ownership. This structure can introduce legal ambiguity, particularly in jurisdictions where on-chain settlement and shareholder rights are not yet clearly defined.

Data from recent market activity shows that transfers involving tokenized equities reached approximately 2.46 billion dollars last month, indicating growing interest despite unresolved regulatory questions.

Armstrong has outlined a longer-term strategy in which Coinbase aims to build an integrated platform that would allow trading of cryptocurrencies, tokenized equities, and commodities in a single environment by 2026. Whether this model becomes widely adopted will likely depend on how regulators, issuers, and investors address governance, settlement, and compliance challenges.

The post How Blockchain May Change Stock Trading first appeared on The VR Soldier.

Ethereum stabilizes above breakout zone

Ethereum is holding above the $3,000 support area after breaking out of a long-standing descending channel, according to technical and on-chain indicators. The asset is consolidating below major resistance while maintaining structure above the former resistance level that has now flipped into support.

The breakout followed an impulsive rally that pushed ETH into a high-confluence resistance band. Subsequent selling pressure led to a series of bearish daily candles, but price action has remained above the lower boundary of the breakout range.

Momentum cools but structure holds

The Relative Strength Index has eased from overbought conditions into neutral territory, signaling reduced short-term momentum without invalidating the broader trend. Ethereum continues to trade above the daily trendline, which analysts view as a key level defining the current bullish structure.

Shorter time frame charts show consolidation forming above the breakout area. This zone is now acting as a mid-range value area where buyers and sellers are reassessing direction. A sustained move above nearby resistance could reopen higher price targets, while a breakdown below support may lead to a retest of lower demand levels.

On-chain data points to improving demand

On-chain metrics indicate that Ethereum network activity is recovering. The 30-day simple moving average of active addresses has risen above 400,000, a level historically associated with periods of sustained market participation.

The increase follows a prolonged decline seen through the second half of 2024. Analysts link the recent recovery in address activity to renewed decentralized finance usage and restaking flows. In previous market cycles, rising active addresses have often coincided with broader price expansions.

Continued growth in network participation would strengthen the case for sustained medium-term demand, while declining activity could weaken the current technical structure.

The post Ethereum Holds $3K After Downtrend Break first appeared on The VR Soldier.

Bitcoin Core expands maintainer group

Bitcoin Core developers have added a new trusted maintainer to the group of contributors authorized to commit changes directly to the project’s master software branch.

On Jan. 8, 2026, a pseudonymous developer known as TheCharlatan became the sixth holder of a trusted PGP key recognized by the Bitcoin Core repository. The addition marks the first expansion of this group since May 2023.

The new maintainer joins Marco Falke, Gloria Zhao, Ryan Ofsky, Hennadii Stepanov, and Ava Chow, who collectively oversee final code approvals for Bitcoin’s primary software implementation.

Community-backed promotion

Bitcoin Core’s GitHub contributor group includes 25 active developers. Among them, six hold PGP keys that permit direct commits to the project’s master branch.

During a contributor discussion, at least 20 developers formally supported TheCharlatan’s promotion. No objections were recorded. The nomination cited extensive review activity in critical areas of the codebase and consistent participation in consensus discussions.

Focus on reproducibility and validation

TheCharlatan holds a computer science degree from the University of Zurich and focuses on Bitcoin Core’s reproducible builds and validation logic. Reproducible builds allow independent verification that compiled software corresponds directly to publicly available source code.

His work builds on prior efforts to separate validating and non-validating components in Bitcoin Core’s kernel library. This separation improves clarity in determining whether blocks extend the chain with the highest accumulated work.

Evolution of Bitcoin Core governance

At Bitcoin’s launch in 2009, only Satoshi Nakamoto held commit authority. That role was later transferred to Gavin Andresen and then to Wladimir van der Laan.

Following legal threats in 2018 and subsequent litigation involving Craig Wright, van der Laan initiated a decentralization effort to distribute commit authority among multiple maintainers. This transition established the current governance model, which now consists of six trusted keyholders responsible for safeguarding Bitcoin Core’s development process.

The post Bitcoin Core Adds Sixth Trusted Maintainer first appeared on The VR Soldier.

SHIB Whale Transactions Spike

Large-value transfers involving Shiba Inu increased sharply over the past week, according to data from Santiment. The analytics firm recorded a 111 percent rise in transactions exceeding whale thresholds, placing SHIB among the top large-cap tokens for institutional activity growth.

The spike reflects renewed participation from professional trading desks and high-net-worth wallets after a period of reduced movement across meme-based digital assets.

Institutional Wallets Increase Exposure

Market observers say SHIB’s multi-billion-dollar market capitalization and deep liquidity make it suitable for institutional positioning. Large orders can be executed on major exchanges with limited slippage, allowing firms to enter and exit positions without destabilizing price structures.

Traders typically prefer assets with sufficient depth to support portfolio-sized orders while maintaining tight spreads.

Retail Metrics Remain Flat

Despite the surge in whale activity, retail indicators have remained relatively unchanged. Search trends, mobile wallet installs, and exchange app downloads tied to SHIB have stayed near baseline levels, suggesting retail traders have not yet returned in force.

This divergence mirrors previous cycles where institutional accumulation preceded broader retail participation.

Whale Activity Often Leads Market Cycles

Historical market patterns show that sustained growth in whale transactions frequently appears ahead of speculative expansion phases. Institutional capital often establishes base positions before public participation accelerates.

The continued rise in large SHIB transfers suggests professional desks may be positioning early for the next volatility cycle expected in 2026.

The post Shiba Inu Sees Whale Activity Surge first appeared on The VR Soldier.

U.S. spot exchange traded funds tracking XRP recorded their first net outflow on Jan. 7, interrupting a 36-day streak of continuous inflows, according to data compiled by SoSoValue.

The five XRP ETF products collectively posted net redemptions during the session, reversing the steady accumulation trend that had defined trading activity throughout the previous month. This marked the first day since launch that the group failed to attract net new capital.

Despite the reversal, cumulative inflows across the XRP ETF complex remain close to recent highs. The size of the outflow was modest when compared with the total amount of capital added over the full 36-day run, suggesting limited impact on the broader trend so far.

Market analysts note that extended inflow streaks are often followed by short consolidation phases as investors rebalance portfolios or realize profits. Single-day reversals are common during periods of elevated participation and do not necessarily indicate a change in long-term demand.

Whether the Jan. 7 redemptions represent a temporary pause or the start of a broader shift in institutional positioning will depend on activity in upcoming trading sessions. Continued outflows over multiple days would point to weakening demand, while a return to inflows would frame the reversal as a brief interruption in an otherwise strong accumulation pattern.

The post XRP ETF Demand Shows First Sign of Cooling first appeared on The VR Soldier.

Venezuela is believed to hold a large amount of Bitcoin, possibly as much as 600,000 BTC. If these coins were seized by the United States following the capture of President Nicolás Maduro, they would likely be tied up in legal processes for years.

That outcome would remove around 3 percent of Bitcoin’s total supply from active circulation without any coins being sold. For an asset with a fixed supply, this kind of disruption could have meaningful effects on the market.

How Venezuela Built a Large Bitcoin Reserve

While Venezuela is often associated with oil exports, reports suggest the country quietly accumulated Bitcoin over several years. After international sanctions began in 2018, the government reportedly turned to alternative methods to move and store value.

These efforts included gold swaps, oil transactions settled in stablecoins, and the seizure of domestic Bitcoin mining operations. Gold extracted from the Orinoco Mining Arc was allegedly sold, with estimates suggesting that close to $2 billion was converted into Bitcoin when prices were near $5,000.

Source: X

As the state-backed Petro currency failed, USDT became a temporary solution for oil payments. Over time, some of those funds were reportedly converted into Bitcoin to reduce the risk of account freezes.

Taking later inflows into account, analysts estimate Venezuela’s Bitcoin holdings range between 600,000 and 660,000 BTC, currently valued at more than $60 billion.

Why This Matters for Bitcoin’s Market

To understand the potential impact, consider Germany’s Bitcoin sale in 2024. When Germany sold roughly 50,000 BTC, the market saw a correction of about 15 to 20 percent, followed by weeks of weakness.

Venezuela’s estimated holdings are more than ten times larger. At this scale, they rival the Bitcoin holdings of MicroStrategy and sit just below the size of BlackRock’s IBIT exchange traded fund. They are also nearly double the amount of Bitcoin held by the U.S. government.

If these coins were frozen instead of sold, a significant portion of Bitcoin’s circulating supply would effectively disappear from the market.

Why a Large Sell-Off Is Unlikely

The most likely outcome is a prolonged freeze. Legal disputes, forfeiture claims, and creditor challenges could keep the coins locked in escrow for years.

Another possibility is that the Bitcoin could be held as a long-term reserve. Donald Trump has previously expressed openness to holding seized Bitcoin rather than selling it immediately.

A rapid sale appears unlikely. Selling such a large amount of Bitcoin would risk major market disruption and could undermine broader narratives around Bitcoin as a strategic asset.

Short-Term and Long-Term Effects

In the short term, uncertainty around these holdings could increase volatility. However, there are no strong signs of panic selling so far, similar to patterns seen during recent geopolitical events.

Over the longer term, a forced lock-up of hundreds of thousands of Bitcoin could support prices. Reduced liquid supply strengthens the scarcity argument and favors long-term holders as the market moves into the next cycle.

The post Venezuela Bitcoin Holdings Could Affect BTC Supply first appeared on The VR Soldier.

Pepe has posted a sharp rebound, rising about 76 percent over the past week as the wider memecoin market turned positive. The move came during a period of strong gains across several well-known memecoins, drawing renewed attention to the sector.

The key question now is whether this rally reflects lasting momentum or a short-term return to speculative trading.

Pepe Breaks Out of Its Range

Pepe’s price moved higher in a short period, breaking out of a consolidation range that had held for weeks. The rally pushed the token to price levels not seen in some time.

Trading activity increased alongside the price move. Volume rose sharply, suggesting the rally was supported by active participation rather than thin liquidity. Momentum indicators also shifted upward, showing that buyers were in control during the move.

At the same time, the speed of the rise has been notable. After such a rapid advance, short pauses or pullbacks are common as the market digests gains.

Memecoins Rise Together

Pepe’s move did not happen in isolation. Data from CoinMarketCap shows that many major memecoins have recorded solid weekly gains.

Tokens such as Dogecoin, Shiba Inu, Bonk, Floki, and dogwifhat have all moved higher, pointing to broader rotation into the memecoin sector rather than a single token rally.

Source: CoinMarketCap

 

This broader strength is also visible at the market level. Since the start of the year, total memecoin market value has increased by nearly 30 percent, adding more than $10 billion in a short period.

Early Signs of a Shift in Market Focus

Changes are also visible in memecoin dominance within the altcoin market. After losing ground through late 2024, memecoins reached a low point in December 2025.

 

Memecoins are rising from the dead.

After the memecoin mania that ended in November 2024, memecoin dominance within the altcoin market continued to decline, eventually reaching a historical low in December 2025.

The last time this level was reached, it preceded the launch of… pic.twitter.com/I6Xq7ILu5a

— Darkfost (@Darkfost_Coc) January 4, 2026

Historically, similar dips in dominance have occurred before periods of stronger memecoin performance. Recently, this ratio has started to rise again as several major tokens posted strong gains.

While it is too early to define this move as a full memecoin cycle, the recent data suggests that interest in the sector is returning and spreading across multiple assets.

The post Pepe Jumps 76% as Memecoins See Broad Recovery first appeared on The VR Soldier.

Bitcoin and several major cryptocurrencies have shown renewed price strength in early 2026, signaling a shift away from the fear-driven conditions that defined much of the previous downturn. Market indicators suggest that the broader digital asset sector is beginning to stabilize, encouraging a cautious return of speculative activity.

As prices recover, interest has also returned to cryptocurrency airdrops. These campaigns distribute tokens to users who complete predefined tasks, often aimed at introducing new participants to blockchain networks and decentralized applications. Analysts say the timing of these programs frequently aligns with improving market conditions, when users are more willing to explore new platforms.

Market sentiment shifts

Sentiment trackers show that extreme fear levels recorded in prior months have eased. Bitcoin has regained key technical levels, while several altcoins have also staged partial recoveries. This combination has contributed to a more balanced outlook across the market.

The improving environment has encouraged blockchain projects to restart on-chain reward programs that had slowed during periods of weak trading activity.

How airdrops function

Airdrops typically reward users who connect wallets, test network features, participate in governance processes, or complete social engagement tasks. These distributions allow projects to decentralize token ownership, build early communities, and test network usage under real conditions.

While these campaigns are often described as free distributions, participants usually provide time, engagement, and network interaction in exchange for the rewards.

Parallel opportunities for participants

Market observers note that early 2026 has created overlapping opportunities for users. Participants may benefit from both potential price appreciation and on-chain reward programs if market momentum continues.

At the same time, analysts caution that users should verify campaigns and remain mindful of security risks, as fraudulent airdrop schemes often appear during periods of renewed interest.

The reemergence of airdrops reflects a broader return of activity across decentralized platforms, suggesting that the sector may be entering a new phase of rebuilding following the prior market cycle.

The post Bitcoin Airdrops Return in Early 2026 first appeared on The VR Soldier.

Japan is preparing to introduce a flat 20 percent tax rate on major cryptocurrencies beginning in 2026, significantly lowering the current maximum tax burden that can reach more than half of trading profits. The policy change forms part of a broader overhaul of the country’s digital asset framework aimed at modernizing taxation and improving regulatory clarity.

The reform will apply to what regulators classify as specified crypto assets. These are digital currencies managed by firms registered under Japan’s Financial Instruments Business Operator Registry. Large market assets such as Bitcoin and Ethereum are expected to fall within the eligible group, although detailed criteria are still under review.

Loss carryforwards and investment treatment

Under the revised system, investors will be allowed to carry trading losses forward for up to three years. This aligns crypto taxation more closely with equity investments and provides a mechanism for offsetting future profits.

Cryptocurrencies covered by the new rules will be treated similarly to stocks and investment trusts for tax purposes. Officials say this change is intended to reduce administrative friction, standardize reporting obligations, and encourage long-term participation in regulated markets.

Expansion of crypto ETFs

The updated legal framework also opens the door for investment trusts and exchange traded funds that include cryptocurrencies. Japan has already approved its first XRP exchange traded fund and authorities have indicated that additional crypto based ETFs are under development.

All qualifying funds will be regulated under the Financial Instruments and Exchange Act, placing them under the same supervisory structure that governs traditional securities products.

Market impact and regulatory goals

Financial authorities expect that clearer tax rules and a lower rate will encourage greater retail and institutional involvement in Japan’s digital asset markets. Market observers note that regulatory certainty could support higher trading volumes while reducing reliance on offshore platforms.

The reform is part of a wider national effort to adapt financial regulation to emerging technologies and provide formal pathways for digital asset investment within Japan’s existing legal system.

By aligning cryptocurrency taxation with traditional securities and expanding access to regulated products, officials aim to integrate digital assets more deeply into the country’s mainstream financial sector starting in 2026.

The post Japan to Apply Flat 20% Crypto Tax From 2026 first appeared on The VR Soldier.

Decentralization is a central idea in cryptocurrency, yet most projects begin their lives under tight founder control. Code design, product direction, and treasury management are typically handled by a small team during the early stages. This structure allows rapid decision making but conflicts with the long term aim of distributing authority to a broader community.

For this reason, many projects plan a gradual transition toward governance through a decentralized autonomous organization. The challenge is timing. If authority is transferred too early, a community may lack the knowledge and organization needed to manage a complex protocol. As a result, decentralization is often introduced in stages.

The first step usually involves creating a formal governance framework. This often includes a governance token that represents voting power and defines who can submit proposals. Early community forums allow participants to debate changes, suggest new features, and discuss treasury use before any binding authority is granted.

A well known example is Decentraland. It began by establishing a foundation and online forum where members could share ideas. It then introduced governance tokens that allow holders to propose changes and vote on how funds should be spent. Initial voting rounds were advisory only, providing a way to test governance processes without putting the protocol at risk. Over time, binding on chain votes were introduced for limited technical updates, followed later by broader authority over protocol changes and treasury management.

Full autonomy is reached only when the founding team relinquishes administrative control. This includes giving up direct access to treasury funds and removing special permissions that allow unilateral code changes. At this point, the community becomes responsible for approving upgrades, fixing bugs, and directing long term development. A sustainable treasury is also required so that the protocol can fund operations through fees, lending activity, or other revenue streams.

Some newer projects aim to shorten this transition period. No NPC Society, a project that combines digital identity concepts with community governance, has outlined plans to transfer treasury and voting authority to its community within months of its token distribution. It is using governance tooling on Solana to manage proposals and votes, and plans to rely on multisignature vaults to provide transparency over treasury activity.

DAO governance also presents challenges. Many communities struggle with low participation, slow decision making, and the risk that large token holders gain outsized influence. To address these issues, projects often use structured proposal formats, simple voting options, and participation incentives. More advanced voting models, such as quadratic or reputation based systems, can also be used to distribute influence more evenly.

Moving to a DAO model is widely viewed as a milestone that reflects a project’s maturity. By placing authority in the hands of a distributed global community, projects can strengthen accountability and reduce dependence on founding teams.

The post The Path to DAO Governance first appeared on The VR Soldier.

Ethereum showed improving momentum on December 29 as buying interest increased across the market. The broader crypto market rose about 2.3 percent during the session, pushing total market value back above $3 trillion.

Against this backdrop, Ethereum gained roughly 2.8 percent on the day, outperforming Bitcoin, XRP, BNB, and Solana.

Whale Moves Ethereum Off Exchanges

On-chain data highlighted a notable accumulation event. According to Onchain Lens, a large wallet withdrew 2,218 ETH worth about $6.52 million from Kraken.

Source: X

The same address had received more than 519 ETH, valued near $1.62 million, from Wintermute roughly 19 days earlier. At the time of reporting, the wallet held approximately 2,738 ETH, worth about $8.07 million.

Large withdrawals from exchanges often reduce near-term selling pressure, as assets moved into private wallets are less likely to be sold immediately. This behavior kept traders focused on whether continued accumulation could support higher prices.

Trading Activity Picks Up

Market participation also increased. Data from CoinMarketCap showed Ethereum’s 24-hour trading volume jumped 130 percent to about $17.2 billion. Rising volume alongside price gains often signals stronger engagement from traders and investors.

Ethereum Chart Shows Improving Structure

On the daily chart, Ethereum appeared to be forming a cup-and-handle pattern, a structure commonly seen during recovery phases. Based on this setup, a daily close above $3,050 could open the door to a move toward the $3,360 area.

Trend strength indicators supported the rebound. The Average Directional Index stood near 29, above the typical threshold of 25, suggesting the trend remained intact rather than weakening.

Leverage Builds Around Key Levels

Short-term positioning also leaned bullish. Data from CoinGlass showed heavy leverage clustered near two levels.

Around $2,915, traders had built roughly $1.03 billion in long liquidation exposure. Near $3,074, short liquidation exposure stood at about $381 million. This imbalance suggested bullish positioning dominated near current prices.

At the same time, concentrated leverage near resistance increased the risk of sharp price swings. If price moves decisively in either direction, forced liquidations could add to volatility.

The post Ethereum Sees Large Exchange Outflow as Price Strengthens first appeared on The VR Soldier.

Bitcoin price has tightened as the year comes to an end, placing the market at an important moment. Historically, Bitcoin has never closed a post-halving year in negative territory, which has made the final trading days more significant for investors.

As of December 26, Bitcoin was trading above $90,000, holding a key psychological support level. However, the price remained about 3 percent below the yearly opening level near $93,400, a level closely watched across the market.

The question now is whether Bitcoin can reclaim this level before the yearly close and what that might mean for momentum heading into 2026.

Why the $93,400 Level Matters for Bitcoin

In previous post-halving cycles, Bitcoin often showed renewed strength once it reclaimed its yearly open late in the year. This level has acted as both a technical barrier and a sentiment marker for longer-term trends.

In past instances, failing to move above the yearly open led to short-term pullbacks rather than full trend reversals. Because of this history, traders continue to treat $93,400 as a potential turning point that could trigger stronger price movement.

Price Structure Shows Controlled Consolidation

On lower timeframes, Bitcoin has continued forming higher lows within an ascending channel. This pattern suggests steady accumulation rather than panic selling, even as broader market uncertainty remains.

Momentum indicators support this view. The Relative Strength Index stayed elevated without reaching overbought levels, pointing to ongoing demand. At the same time, the MACD showed tightening conditions, often a sign that a larger move may follow.

Overall, price action reflected balance between buyers and sellers. The market appeared to be waiting for a clear catalyst to break the current compression.

Bitcoin Liquidation Risk Builds on Both Sides

Leverage has increased during this consolidation phase, raising the risk of sharp moves in either direction. A move higher of around 10 percent could trigger roughly $7.8 billion in short liquidations.

Source: X

On the downside, a similar drop could liquidate close to $6 billion in long positions. This two-sided exposure means that even a modest breakout could quickly accelerate due to forced liquidations.

Such setups have historically led to strong volatility once price escapes a tight range, though the direction still depends on spot market demand.

Coinbase Leads Recent Selling Activity

Recent exchange flow data showed that Coinbase surpassed Binance as the largest source of Bitcoin selling over the past week. This shift may point to increased activity from U.S.-based or institutional participants.

Despite this selling, Bitcoin has continued to hold above $90,000. The market absorbed the supply without breaking down, suggesting that underlying demand remains present.

Whether this selling pressure limits upside or represents healthy rotation is still unclear. As the yearly close approaches, traders remain focused on how Bitcoin behaves around key levels.

The post Bitcoin Holds Above $90K as Yearly Close Approaches first appeared on The VR Soldier.

Bitcoin ETF Outflows Continue

Spot Bitcoin exchange-traded funds posted another day of net redemptions on December 26, extending a five-session withdrawal streak as Bitcoin remained capped below key resistance levels. Net outflows for the day totaled about $83 million, bringing cumulative redemptions during the streak to more than $750 million.

Bitcoin ETF data| SoSo Value

Fidelity’s FBTC led withdrawals with approximately $74 million in net outflows. Grayscale’s GBTC followed with around $9 million in redemptions. Other spot Bitcoin ETFs recorded little to no flow activity during the session, while BlackRock’s IBIT figures were not updated at the time of reporting.

Total assets under management across U.S. spot Bitcoin ETFs slipped to roughly $114 billion. Although cumulative inflows since launch remain above $56 billion, the sustained outflows signal rising caution among institutional investors as Bitcoin struggles to hold higher price levels.

Price Weakness Pressures Institutional Products

Bitcoin continued trading below $88,000, failing to reclaim the $90,000 threshold that previously supported inflows into ETF products. The recent weakness has coincided with lower trading volumes and fading short-term momentum.

ETF turnover has dropped sharply from mid-December peaks, reflecting reduced participation from both institutional and retail market participants. Market analysts note that ETF flow patterns have become increasingly sensitive to price action near major resistance zones.

Ethereum ETFs Mirror Trend

Ethereum-based ETFs have shown similar behavior. ETH products recorded additional net redemptions in late December, reducing total assets under management to under $18 billion. The parallel movement suggests a broader cooling across major crypto-linked investment vehicles rather than asset-specific pressure.

What to Watch Next

Market participants are now monitoring whether Bitcoin can reclaim levels above $90,000 to restore confidence and attract fresh institutional inflows. Until stronger upward momentum returns, ETF activity is expected to remain volatile and closely tied to short-term price movements.

The post Bitcoin ETFs Continue Heavy Redemptions first appeared on The VR Soldier.

Spain is preparing for a major shift in how cryptocurrencies are regulated and monitored. What was once a loosely supervised market is moving toward a tightly controlled financial system, with full oversight expected by mid-2026.

This change is tied to the European Union’s MiCA framework, which will standardize crypto regulation across member states. In Spain, enforcement will fall under the country’s market regulator, the National Securities Market Commission. The CNMV already supervises more than 60 registered crypto firms, including banks and custody providers, and will soon apply full institutional rules to digital assets.

Under the new regime, compliance will no longer be optional. Companies operating in Spain must meet EU licensing standards or exit the market. The government has extended the transition period until July 1, 2026, giving firms time to adapt, but the deadline is strict. Any provider that fails to obtain full authorization will be forced to shut down its Spanish operations.

DAC8 Changes How Crypto Is Reported

While MiCA focuses on market structure, a separate law known as DAC8 will reshape how crypto activity is reported to the state. Approved in October 2025, DAC8 takes effect on January 1, 2026.

Under this directive, crypto platforms must report every transaction to Spain’s Tax Agency. Unlike traditional banking rules, there are no minimum thresholds. A transaction worth two euros will be reported the same way as one worth two million.

This creates a reporting system that is broader than anything previously applied to financial markets. Platforms operating in Spain, including Binance and Kraken through their European entities, will be required to submit full transaction records by 2027.

As automated reporting expands, private self-custody wallets stand out as one of the few areas not directly covered by DAC8. While centralized platforms must report user activity, assets held in personal wallets remain outside this system, at least for now.

This creates a clear divide. Users who rely on centralized services will face full transparency and potential asset seizure, while those who self-custody retain a narrowing space of legal privacy.

Spain Direction Differs From Global Trends

Spain’s regulatory push is happening alongside broader political proposals. Some lawmakers have suggested raising capital gains taxes on crypto to as high as 47 percent and treating digital assets as fully seizable property.

At the same time, other countries are taking a different approach. In the United States, proposed legislation such as the Bitcoin for America Act would allow citizens to pay federal taxes in Bitcoin without triggering capital gains taxes. This would treat Bitcoin more like a strategic asset than a speculative one.

The contrast is becoming more visible. Spain is moving toward heavy oversight and taxation, while other jurisdictions are experimenting with incentives and integration.

As a result, Spanish crypto companies and investors are becoming more vocal. Many are working to protect user privacy and prevent capital and talent from moving to more crypto-friendly countries.

With 2026 approaching, Spain faces a defining moment. The outcome will shape not only how crypto is used in the country, but also whether innovation stays within its borders or looks elsewhere.

The post Spain Moves to Track All Crypto Transactions as 2026 Nears first appeared on The VR Soldier.

Solana’s network activity continues to grow, even as SOL’s price struggles. Recently, the amount of SOL locked in staking reached a new all-time high of 409 million tokens. This increase strengthens network security, but it also raises questions about whether Solana is becoming more decentralized or less.

While staking growth is usually seen as a positive signal, changes behind the scenes show a more complicated picture.

Source: X Solana Validator Numbers Drop After Subsidy Changes

To improve long-term sustainability, the Solana Foundation reduced staking subsidies that were previously given to some validators. Validators are the operators responsible for producing blocks and securing the network.

As part of this shift, the Foundation cut its delegated SOL to smaller validators from 85 million SOL down to 23 million. While this move was meant to encourage healthier economics, it also had a major side effect.

Many smaller validators could no longer operate profitably and exited the network. As a result, the total number of Solana validators fell sharply, dropping by about 68 percent from roughly 2,500 to around 800.

This decline has raised concerns about decentralization. For context, Ethereum has close to one million validators securing its network, far more than Solana. If Solana’s validator count continues to shrink, critics worry that control could become more concentrated among fewer operators.

Real World Asset Activity Continues to Grow

Despite validator concerns, Solana’s on-chain activity is picking up in another area. The network is seeing increased interest in real-world asset tokenization.

The number of RWA holders on it has reached a new high of more than 115,000 addresses. This represents an 11 percent increase over the past 30 days, even while the broader crypto market remains quiet.

These assets include tokenized versions of traditional financial products such as stocks, credit instruments, and money market funds. The rise in users suggests growing demand for on-chain financial tools beyond speculative trading.

Solana Lags in RWA Capital Flows

While user participation is rising, Solana is not leading in capital inflows. During the fourth quarter of 2025, Solana attracted about $216 million in net RWA flows.

By comparison, Ethereum and BNB Chain each recorded more than $1 billion in net inflows over the same period. This means competing networks captured roughly six times more capital.

Interestingly, its number of RWA users is close to Ethereum’s total of around 138,000 and far higher than BNB Chain’s roughly 8,000 users. However, BNB Chain appears to attract larger individual participants, allowing fewer users to move significantly more capital.

Solana Price Action Fails to Reflect Network Growth

Despite strong staking levels and growing RWA participation, SOL’s price has not followed these improvements. The token has fallen by about 58 percent from previous highs and was trading near $121 at the time of writing.

This gap between price performance and network fundamentals suggests that market sentiment remains cautious. Whether staking growth and real-world asset adoption can eventually support a recovery remains an open question.

The post Solana Reaches 409 Million Staked SOL as Price Remains Weak first appeared on The VR Soldier.

Michael Saylor’s Strategy Inc., formerly known as MicroStrategy, has been one of the largest institutional buyers of Bitcoin for years. The company built its reputation by consistently adding BTC to its balance sheet, even during market downturns.

As 2025 comes to an end, that narrative has shifted. Bitcoin has dropped from its October high near $126,000 to around $88,000. At the same time, Strategy Inc. has slowed its Bitcoin purchases, breaking a pattern that investors had grown used to.

This pause has unsettled the market. Some investors now fear that the company could be forced to sell part of its Bitcoin holdings, which total roughly 671,268 BTC and are valued at about $58 billion.

MicroStrategy Stock Weakness Fuels Anxiety

Concerns intensified as Strategy Inc.’s stock price fell sharply. Since July, the stock has declined by about 65 percent, dropping from roughly $456 to around $158.

Because the company holds more than 3 percent of all Bitcoin in circulation, its stock performance is closely tied to Bitcoin sentiment. As the share price fell, online discussions began questioning whether the so called Bitcoin premium attached to the stock was disappearing.

Despite the panic, the company’s financial structure tells a more stable story. Strategy Inc. relies mainly on long term debt rather than short term borrowing. It also maintains a large cash reserve, which started at $1.44 billion and later grew to more than $2.1 billion.

This setup gives the company flexibility. Even in a prolonged downturn, it does not face immediate pressure to sell Bitcoin. While social media speculation has focused on liquidation risk, the balance sheet suggests that such a scenario is not close.

When Fear Reached Its Peak

Market anxiety peaked in early December, when prediction markets suggested a 61 percent chance that MSCI could remove MicroStrategy from certain stock indexes.

If that were to happen, passive investment funds would be forced to sell large amounts of stock, potentially triggering billions of dollars in outflows. Critics quickly amplified this risk, often driven by long standing skepticism toward Michael Saylor’s aggressive Bitcoin strategy.

However, periods of extreme negativity often appear near market turning points. Historically, when sentiment becomes heavily one sided and weaker holders exit, prices tend to stabilize or reverse.

Recent data supports this idea. Public sentiment toward Saylor, which became sharply negative in mid November, has begun to level out in recent weeks.

A Broader Risk Beyond MicroStrategy

The bigger concern may not be limited to Strategy Inc. alone. The entire Digital Asset Treasury sector is under growing pressure. The top 100 Bitcoin focused companies now hold more than one million BTC combined, showing how widely Saylor’s approach has been adopted.

This concentration has also attracted attention from index providers. MSCI is reportedly considering rules that would exclude companies holding more than half of their assets in Bitcoin.

Such a change could increase borrowing costs for these firms and reduce access to the roughly $15 trillion passive index market. Analysts estimate that Strategy Inc. alone could face between $2.8 billion and $9 billion in forced selling if exclusion occurred.

For now, this remains a theoretical risk. Without confirmation, the market may be overstating the immediate danger.

Taken together, Strategy Inc.’s cash reserves, long term debt structure, and continued institutional interest in Bitcoin suggest that current fear may reflect a period of stress rather than a structural collapse. In past cycles, similar conditions have often marked moments of transition rather than final breakdowns.

The post Rising Fear Around MicroStrategy Raises Questions About Bitcoin’s Bottom first appeared on The VR Soldier.

Trump links new energy capacity to lower consumer costs

President Donald Trump claimed his administration will bring 1,600 new power-generation sites online within the next 12 months, stating that expanded supply should ease electricity prices and support economic growth. He presented the pledge as part of a broader effort to manage rising energy consumption tied to artificial-intelligence infrastructure.

Trump said the U.S. inherited cost pressures and infrastructure bottlenecks from prior leadership and argued that accelerated project approvals would counteract recent price increases. He also pointed to wage gains and charted price declines in other consumer categories, while attributing higher health-insurance premiums to Democratic positions during last year’s budget standoff.

ERCOT sees unprecedented load from AI development

The comments arrived as the Electric Reliability Council of Texas reported a sharp increase in power-interconnection requests from large industrial users. ERCOT data shows its queue of high-demand projects has grown from roughly 63 gigawatts at the end of last year to about 226 gigawatts. Approximately 73% of that demand is linked to data-center development designed to support large-scale AI training and compute.

The scale of requests has raised concerns about generation adequacy and siting requirements as developers look for fast-track access to cheap power. Analysts note that accelerated demand from AI clusters could reshape regional pricing spreads and long-term grid-planning assumptions if projects follow through at current volume.

Broader economic framing

Trump presented expanded generation as a foundation for domestic competitiveness, suggesting that lower electricity pricing would support consumer purchasing power and help anchor future investment. He argued that streamlining approvals and increasing supply would create space for wage expansion, industrial activity, and continued technology adoption.

The address encouraged voters to expect further announcements tied to economic policy and infrastructure in the year ahead, positioning energy build-out as a mechanism for maintaining U.S. leverage in emerging technology markets.

The post Trump Eyes 1,600 New Power Plants first appeared on The VR Soldier.

Leaked Account Activity

Binance is facing renewed criticism after internal data reviewed by the Financial Times indicated that accounts flagged for suspicious behavior continued to transact on the exchange following its 4.3 billion-dollar settlement with U.S. authorities in 2023. The records reportedly cover activity from 2021 to 2025 and involve red-flag indicators, including large transfers, frequent banking-detail changes, and connections to wallets later frozen under anti-terrorism actions.

The report cited one account registered to a resident of a Venezuelan slum that moved about 93 million dollars over four years. According to the investigation, some activity was linked to networks later accused by U.S. officials of handling funds for Iran and Hizbollah.

Another account, registered to a 25-year-old Venezuelan woman, reportedly received more than 177 million dollars in cryptocurrency across two years. The account changed its linked banking details 647 times in 14 months and cycled through nearly 500 accounts in various jurisdictions.

Volume After the Settlement

The Financial Times reviewed information tied to 13 accounts that together handled 1.7 billion dollars in transactions. Around 144 million dollars of that activity took place after Binance reached its plea agreement in late 2023. A former U.S. federal prosecutor told the newspaper that the behavior resembled an unlicensed money-transmission operation.

Logins and Sanctioned Links

The leaked data also pointed to unusual login records, including instances in which accounts appeared to be accessed from distant geographic locations within time frames suggesting compromised or coordinated use. One example involved a Venezuelan banking employee’s account accessed from Caracas and Osaka within roughly half a day.

Some accounts reportedly received funds in the Tether stablecoin from wallets later frozen by Israeli authorities for alleged ties to Hizbollah and Iran-aligned groups. Transfers were traced to wallets associated with a Syrian national later sanctioned by the U.S. Treasury for facilitating movement of funds to the Houthis.

Corporate Response and Oversight

Binance told the Financial Times that the platform applies strict compliance standards and investigates questionable flows. The reporting follows continued attention on governance at the exchange after a 2024 presidential pardon granted to founder Changpeng Zhao. The pardon and evolving business relationships involving the former president’s family have drawn commentary from former intelligence officials about oversight challenges.

The Financial Times noted that portions of the flagged flow occurred after independent monitors were appointed in 2024 to oversee compliance practices under the settlement.

The post Binance Faces Questions on Flagged Activity first appeared on The VR Soldier.

Memecoins & Solana have become one of the most visible trends in crypto during 2025. Assets once seen as internet jokes have moved closer to the mainstream, with products linked to Dogecoin and Bonk gaining wider exposure. This shift has forced investors to take speculative tokens more seriously.

Solana played a major role in this trend. Its fast and low-cost network made it the preferred platform for launching and trading memecoins. High-profile launches such as Official Trump and Melania Meme strengthened SOL’s image as the network built for rapid speculation.

That reputation is now being tested.

A federal court has allowed a class-action lawsuit to move forward against Pump.fun, Solana Labs, and other projects connected to the SOL’s ecosystem. The case accuses the parties involved of market manipulation tied to memecoin launches.

What makes this case different is its focus. The lawsuit does not only target individual tokens or timing advantages. Instead, it challenges whether SOL’s network design itself gave insiders an unfair edge.

 

Solana has a problem.

Solana Labs and ecosystem partners face allegations that they enabled or facilitated a meme pump system that gave insiders unfair trading advantages.

Solana Labs is accused of deliberately designing and maintaining a system that enabled front-running.… pic.twitter.com/assOeGn40d

— Cardano YOD₳ (@JaromirTesar) December 17, 2025

Why Solana’s Technology Is Part of the Case

At the center of the lawsuit is SOL’s high-speed and high-throughput architecture. Plaintiffs argue that these technical features allowed certain participants to act faster than the broader market, especially during memecoin launches on Pump.fun.

Pump.fun operates as a memecoin launchpad built on Solana. It enabled millions of tokens to be created and traded almost instantly. According to analysts, this speed may have allowed supply to concentrate quickly in the hands of a small group.

Data cited in the case suggests that the top ten holders control roughly 70 percent of PUMP’s circulating supply. This level of concentration limits retail participation and keeps price movement constrained.

Price Behavior Adds to Legal Concerns

PUMP’s market performance has added weight to the lawsuit’s claims. The token currently trades about 3.15 percent below its initial offering price of $0.02. Plaintiffs argue that restricted supply and insider positioning kept prices from reflecting open market demand.

The lawsuit claims that this pattern left retail buyers at a disadvantage while early participants benefited from tighter control over supply.

Broader Implications for the Solana Ecosystem

While Pump.fun sits at the center of the case, it may not be the main issue. Instead, it is being treated as an example of a larger concern related to how Solana’s network operates.

If the court determines that its technical structure enabled unfair market behavior, the outcome could have wider consequences. Not only memecoin platforms but also other projects built on SOL’s could face closer regulatory and legal scrutiny.

As the case moves forward, attention will likely shift from individual tokens to whether high-speed blockchain design creates risks that regulators and courts are no longer willing to ignore.

The post Solana Faces Legal Scrutiny as Pump.fun Raises Network Questions first appeared on The VR Soldier.