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Blockchain
Blockchain
Blockchain
Blockchain
Blockchain
Blockchain
As Cardano moves into February 2026, its development trajectory is defined by a series of scheduled technical enhancements. Following a period of subdued market activity, these verifiable milestones are drawing renewed scrutiny from developers and investors alike. The network’s ability to accelerate its pace and expand its application layer is closely tied to the successful implementation of these upgrades.
Recent on-chain activity provides context for the current development focus. Data from the past several months indicates a pattern of accumulation by large ADA holders. Furthermore, the network’s on-chain governance system approved a substantial Treasury proposal worth 70 million ADA in early January 2026. These funds are earmarked for financing core ecosystem integrations, including Pyth Oracle and Dune Analytics, with their deployment anticipated throughout the year.
The most imminent upgrade is an intra-era hard fork to implement Protocol Version 11. According to Intersect, a member-based organization within the Cardano ecosystem, this update is designed to deliver three primary improvements:
A phased rollout is planned. The initial step involves the pre-release of Cardano Node 10.6.2 in the first week of February, allowing the community to conduct testing on the SanchoNet test network. This will be followed by the release candidate, Cardano Node 10.7.0, which is intended to prepare the mainnet for the hard fork. The target date for this mainnet upgrade is approximately three weeks after the end of January.
Looking beyond the immediate hard fork, Cardano’s agenda for 2026 encompasses several key themes. A major scaling initiative, Ouroboros Leios, is in development with the goal of significantly increasing transaction capacity. In parallel, work continues on Midnight, a privacy-focused sidechain.
External factors also play a role in the network’s outlook. Market participants are closely monitoring the evolving regulatory landscape in the United States. Greater legal clarity could potentially lower barriers to broader institutional adoption of blockchain technologies like Cardano.
Despite these forward-looking developments, market conditions remain challenging. ADA is currently trading at $0.33, reflecting ongoing pressure with a -6.65% decline on Friday. In the near term, market attention is firmly fixed on the February schedule: the testing phase via Node 10.6.2 and the subsequent hard-fork-ready Node 10.7.0, which represents the next critical checkpoint for the network’s roadmap.
A shift in monetary policy expectations is creating headwinds for Bitcoin, touching on a key concern for cryptocurrency investors: the availability of liquidity in the financial system. The recent price weakness stems from more than a technical correction; it reflects a reassessment of the Federal Reserve’s future actions. This analysis explores the sources of the selling pressure and the pronounced reactions across derivative and exchange-traded fund markets.
Significant pressure is emerging from the fund sector. According to data from SoSoValue reported by Yahoo Finance, the twelve US-listed spot Bitcoin ETFs recorded net outflows of $1.6 billion in January 2026. This marked the third consecutive month of negative flows. Cumulatively, outflows over this three-month period reached approximately $6 billion, representing the longest withdrawal streak since these products were approved in January 2024.
These outflows are more than a sentiment indicator; they represent actual capital being withdrawn at the ETF level, which can directly weigh on the spot market.
The pace of selling accelerated following US President Donald Trump’s Friday nomination of Kevin Warsh as a candidate for Fed Chair. Warsh is viewed as an advocate for a smaller Federal Reserve balance sheet. This perception strikes a nerve: many market participants interpret a reduced Fed balance sheet as leading to less liquidity circulating within the financial system.
Historically, this liquidity has served as a crucial tailwind for risk assets, with cryptocurrencies often among the primary beneficiaries. Economist Brian Jacobsen of Annex Wealth Management noted to Reuters that liquidity, due to a combination of a large Fed balance sheet and strict bank regulation, had been “trapped on Wall Street.” A reversal in this environment can accelerate price adjustments, especially given the tendency for crypto market movements to quickly reinforce themselves.
For context: On Friday, Bitcoin declined by -5.15%, hitting a 52-week low in the available price data.
The options market is sending a concurrent signal: investors are increasingly seeking protection. On Deribit, the notional open interest for put options with a $75,000 strike price has risen to $1.159 billion. This brings it nearly level with the open interest for bullish $100,000 call options, which stands at $1.168 billion.
This denotes a noticeable shift in sentiment compared to the period following Trump’s election victory, when higher call strikes were in high demand. The substantial purchase of puts over the prior 48 hours suggests, as reported by CoinDesk, that options traders and hedge funds had at least factored in the possibility of a move toward these price levels.
Key Developments at a Glance:
* Warsh’s nomination fuels concerns over declining market liquidity.
* Put demand rises: $75,000 puts nearly match $100,000 calls.
* The ETF market contributes additional selling pressure via sustained outflows.
Despite the price correction, legislative processes in Washington advance. On January 29, the Senate Agriculture Committee voted (12–11) to advance the Digital Commodity Intermediaries Act. This marks the first time a major crypto market structure bill has moved beyond a Senate committee stage. Furthermore, Reuters reported a January 27 meeting at the White House involving bank and crypto executives to explore a compromise on pending regulation.
In the short term, however, a “risk-off” environment dominates. Parallel events, such as the sharp sell-off in silver on January 30 (described by CNBC as its largest single-day drop since 1980), have further dampened risk appetite among many investors.
Bitcoin has shown relative stability within this climate. With a dominance of roughly 57.3% of the total crypto market (per CoinGecko), BTC has held up better than many alternative coins during this correction.
The market dynamics ultimately converge on a central theme: as long as fears over liquidity, hedging pressure in derivatives, and ETF outflows persist concurrently, Bitcoin remains vulnerable to further periods of weakness—even as regulatory developments may prove constructive over the longer term.
While XRP’s market price faces downward pressure, significant institutional capital is flowing into the asset through new channels. This shift in demand dynamics is occurring alongside Ripple’s scheduled token releases and ecosystem developments, painting a complex picture for the digital asset.
A notable shift in XRP’s investor base is underway. Since their launch in November 2025, spot exchange-traded funds (ETFs) tied to XRP have attracted approximately $1.3 billion in inflows. Market strategists interpret this sustained capital movement as evidence of long-term positioning by institutional players, a trend that appears largely detached from short-term price fluctuations. This emerging demand source is creating a counterbalance to other market forces.
On Sunday, Ripple executed its programmed release of one billion XRP from escrow, continuing a long-standing supply management strategy. Historically, the company has returned roughly 80 percent of such unlocked tokens back into escrow. This mechanism, employed for years, is designed to provide predictable market liquidity. The latest unlock occurred with XRP trading near $1.66, a price level reflecting recent market weakness that contrasts with the growing institutional interest.
Analysts observe that the new ETF-driven demand could structurally alter the market’s response to future escrow releases. As Ripple introduces tokens into circulation, the ETFs are simultaneously absorbing and locking up supply, potentially mitigating the price impact of scheduled unlocks.
Ripple is advancing two major updates to its ecosystem infrastructure, focusing on institutional utility:
Ripple Treasury Platform: Following its acquisition of GTreasury, Ripple is integrating its RLUSD stablecoin into a comprehensive treasury management solution for corporate clients. The platform is intended to allow businesses to manage both digital and traditional liquidity assets within a unified system.
Confidential Multi-Purpose Tokens (MPTs): Scheduled for introduction in the first quarter of 2026, MPTs will leverage zero-knowledge proof technology. This upgrade is designed to enable confidential transactions while maintaining regulatory compliance, a feature set targeted at institutional decentralized finance (DeFi) applications.
The XRP Community Day, scheduled for February 11th and 12th, is expected to provide clarity on Ripple’s strategic priorities for 2026. Key announcements will likely include detailed plans for the proposed smart-contract sidechain and enhanced cross-chain functionalities. Furthermore, the adoption rate of RLUSD within the new treasury platform will be closely watched as an indicator of Ripple’s penetration into traditional financial markets.
The beginning of February has proven challenging for Ethereum investors. Significant selling pressure has gripped the market for the second-largest cryptocurrency, driven by a wave of liquidations and broader market uncertainty. As the price corrects, the developer community is already looking ahead to the planned “Glamsterdam” upgrade and the longer-term technological roadmap for 2026.
Market weakness is clearly reflected in current valuations. Ethereum is trading at $2,818.82, following a sharp 6.25% drop recorded on Friday. Analysts point to substantial liquidations in the derivatives market as the primary catalyst for this move.
A forced unwinding of long positions, in particular, accelerated the downward momentum within an already fragile environment. This combination of technical selling and a general “risk-off” sentiment among investors triggered the most severe pullback since October 2025. Billions in market capitalization were erased during this corrective phase.
Despite the price volatility, the network’s technical development continues unabated. The focus remains on the protocol upgrade codenamed “Glamsterdam,” announced for the first half of 2026. This update aims to optimize transaction processing to make the network faster and more cost-efficient. A key component is the implementation of “Proposer-Builder Separation” (PBS). Later in the year, a subsequent upgrade dubbed “Hegota” is expected to follow, promising enhancements in data pruning and censorship resistance.
Co-founder Vitalik Buterin has also set a philosophical tone for the year, declaring 2026 the year of “digital self-sovereignty.” The core idea is to reduce reliance on centralized structures and solidify Ethereum as a robust foundation for decentralized applications and AI interactions.
The current market dynamics are also putting professional investors to the test. Reports indicate that large institutional addresses, such as “BitMine,” are sitting on significant unrealized losses, with current prices trading well below their average entry levels. While the decision by these major players to hold their positions despite paper losses suggests a long-term strategy, it also underscores the current stress test for so-called “smart money.”
The immediate market trajectory will likely depend on whether the crucial support zone around $2,400 can hold in the event of further weakness. Additionally, investors are awaiting concrete dates for the “Glamsterdam” testnet launch, which could provide fresh positive momentum for the asset.
The weekend saw Bitcoin’s price drop below the $78,000 threshold, intensifying a severe bearish phase that has now persisted for four consecutive months. This marks the cryptocurrency’s most prolonged losing streak since 2018. From its 2025 annual peak, the world’s leading digital asset has shed approximately 40 percent of its value.
A significant catalyst for the recent acceleration in selling pressure was the announcement that former Federal Reserve Governor Kevin Warsh is poised to become the new head of the U.S. central bank. Perceived as an advocate for restrictive monetary policy, Warsh has publicly called for a “regime change” at the Fed, with plans focused on substantially reducing the central bank’s balance sheet.
Market observers view this as a threat to speculative investments. Brian Jacobsen, Chief Economist at Annex Wealth Management, noted that the inflated Fed balance sheet has historically funneled liquidity into risky assets, including cryptocurrencies—a dynamic that could reverse under new leadership.
A pronounced change in market sentiment is evident within the options market. Data from CoinDesk reveals that open interest for Put options with a $75,000 strike price has surged to $1.159 billion. This figure now nearly matches the $1.168 billion in open interest for Call options at the $100,000 strike—a dramatic reversal from the bullish dominance seen following last year’s presidential election.
Substantial Put positions have also accumulated at the $70,000, $80,000, and $85,000 strike levels. Conversely, higher Call strikes above the $100,000 mark are attracting significantly less interest.
The market’s capacity to absorb large trades without major price impact has deteriorated sharply. Kaiko data indicates that available capital to cushion such transactions has fallen more than 30 percent from its October peak. Liquidity conditions this thin were last witnessed following the collapse of FTX in 2022.
The spot Bitcoin ETF market is concurrently experiencing sustained outflows. Many institutional buyers who entered at higher price points are now facing losses. Major participants, such as Digital-Asset-Treasuries, have notably scaled back their purchasing activity following their own portfolio declines last year.
Historical patterns suggest the current correction may have considerable runway left. Kaiko analyst Laurens Fraussen estimates it could continue for another six to nine months, positing that the market is “likely about 25 percent” through the present cycle.
Some forecasts are even more cautious. Richard Hodges, founder of the Ferro BTC Volatility Fund, warns major investors to prepare for a much longer downturn, stating he does not anticipate a new all-time high within the next 1,000 days. Despite regulatory advancements and a pro-crypto agenda under the Trump administration, investor skepticism remains high. Delays in the anticipated market structure legislation have added to the frustration. Meanwhile, capital continues to migrate away from the crypto sector toward AI equities and precious metals.