Daily Crypto Signals: Bitcoin Retests $83K, Solana Anchors Institutional Tokenization Strategy
Bitcoin tumbled to its lowest level in over two months as futures liquidations and AI stock selloffs triggered risk-averse trading, while
Quick overview
- Bitcoin fell to its lowest level in over two months, dropping to $83,400 due to futures liquidations and broader market risk aversion.
- Solana experienced significant institutional adoption, with WisdomTree deploying $159 billion in fund infrastructure on the blockchain.
- The US Senate Agriculture Committee passed a crypto market structure bill aimed at increasing regulatory clarity for digital assets, despite concerns over investor protections.
- Bybit announced plans to launch retail banking services in February, offering personal IBAN accounts for international transactions.
Bitcoin BTC/USD tumbled to its lowest level in over two months as futures liquidations and AI stock selloffs triggered risk-averse trading, while Solana SOL/USD attracted major institutional adoption with WisdomTree deploying $159 billion in fund infrastructure on the blockchain. The contrasting fortunes highlight diverging narratives in crypto markets as regulatory clarity advances and traditional finance increasingly embraces on-chain settlement.
Crypto Market Developments
The cryptocurrency market witnessed substantial turmoil this week as the US Senate Agriculture Committee adopted a comprehensive crypto market structure bill in a 12-11 partisan vote. The legislation, which intends to increase the jurisdiction of the Commodity Futures Trading Commission and offer regulatory certainty for digital asset markets, is currently awaiting full Senate approval following reconciliation with concurrent Banking Committee proposals. Critics worried the plan could weaken investor safeguards despite supporters’ assertions it would offer much-needed regulatory structure to the industry.
In a daring growth move, Bybit announced plans to deliver retail banking services starting February through its “My Bank powered by Bybit” product. At debut, the service will offer customers personal IBAN accounts that facilitate international transactions in up to 18 currencies, including US dollars. The service is being provided by Bybit in partnership with Qatar National Bank, DMZ Finance, and startup lender Pave Bank. This is the exchange’s most recent diversification attempt, which comes around a year after a $1.4 billion heist.
Following rumors that OpenAI is creating a “humans-only” social media platform that requires biometric identification using Apple’s Face ID or the World Orb eyeball scanner, Worldcoin’s token saw a 40% increase. The bot-free platform, purportedly under development since early 2025 with a small team of approximately 10 people, is positioned as a competitor to X and employs “proof of personhood” technology related to World, the blockchain project co-founded by OpenAI CEO Sam Altman.
Bitcoin Drops to $83,000 on Thursday
During Thursday’s trading session, Bitcoin fell to $83,400, erasing all gains from its robust start to the year and hitting the lower limit of a 10-week consolidation range that has kept prices between $84,000 and $94,000 since mid-November. $570 million in long holdings were eliminated by the 4.4% drop from $88,000; the strong selloff was driven more by futures market liquidations than by persistent spot market selling. Bitcoin taker sell volume increased to almost $4.1 billion in just two hours across all exchanges, according to CryptoQuant data, suggesting forced liquidations by overleveraged traders.
The drop coincided with broader market risk aversion after Microsoft shares tanked 11% following dismal quarterly cloud server revenue and reports of higher capital expenditures totaling $625 billion in remaining performance obligations. The selloff also aligned with gold prices dropping 8% in under 30 minutes before recovering half those losses, with the SPDR Gold Shares ETF posting record trading volume reaching $25 billion. Interestingly, Bitfinex Bitcoin margin longs reached a two-year high of 83,933 BTC despite the price decline, though analysts suggest this reflects arbitrage activity rather than purely bullish sentiment, as traders exploit the rate gap between futures and margin markets through cash-and-carry strategies.
Solana’s Institutional Adoption Accelerates with WisdomTree and JSOL
Solana emerged as a bright spot in institutional adoption as WisdomTree implemented $159 billion in fund infrastructure on the blockchain, indicating a substantial validation of SOL’s ability to manage large-scale regulated financial products. The initiative includes WisdomTree’s Government money market digital fund, which contains about $730 million in on-chain assets with direct Treasury-backed settlement, eliminating the need for traditional banking rails and synthetic risk. This innovation shows that regulated money market funds can now settle natively on Solana with institutional-level efficiency and blockchain speed.
As Coinbase announced integration with Jupiter Exchange, providing millions of Solana-based tokens to Coinbase users for the first time through on-chain liquidity, the institutional momentum persisted. Instead than relying on centralized order book listings, Coinbase is employing on-chain technology to enable quick access to Solana-native markets, allowing users to deploy existing funds and payment methods to trade tokens from self-custodial wallets. Furthermore, 21Shares introduced the first Jito-staked Solana exchange-traded product in Europe, which is listed on Euronext Amsterdam and Paris with the ticker JSOL.
By directly holding JitoSOL and reflecting staking incentives in its net asset value, the product gives institutional investors controlled access to liquid staking and allows them to profit from MEV-related gains. The launch builds on VanEck’s JitoSOL ETF file in the United States, though liquid staking products remain under regulatory review domestically despite numerous Solana staking ETFs obtaining permission, including Bitwise’s product that launched with over $220 million in assets.
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