Daily Crypto Briefing – January 7, 2026

Crypto markets pulled back from early-year highs as Bitcoin slipped below $92,000 and institutional activity intensified across multiple fronts. Here's what moved markets on January 7, 2026.

Top Stories

Bitcoin ETF Flows Turn Negative After Strong Start

Spot Bitcoin ETFs posted $243 million in outflows on Tuesday, ending their explosive start to 2026. The reversal came as Bitcoin dropped below $92,000 following rejection at $95,000, with over $490 million in liquidations across crypto markets.

Morgan Stanley Expands Crypto ETF Push

The Wall Street giant filed for an Ethereum trust with the SEC, expanding its crypto offerings beyond Bitcoin and Solana ETFs. The move signals growing institutional appetite for diversified crypto exposure.

Senate Crypto Bill Faces Key Vote

The Senate Banking Committee scheduled a markup vote for its crypto market structure bill next week, despite ongoing divisions between Democrats and Republicans on major issues including stablecoin rewards and DeFi oversight.

JPMorgan Brings JPM Coin to Canton Network

The banking giant will issue its JPM stablecoin natively on Canton Network, marking the second blockchain to host the institutional digital currency after Base.

Markets

Bitcoin Faces Technical Resistance

• Bitcoin dropped to $91,800 after failing to break $94,500 resistance
• Two CME pricing gaps emerged as key downside targets
• Whales accumulated $280 million in Bitcoin over 15 hours despite the pullback
• Funding rates improved but remain indecisive, according to Glassnode

Broader Crypto Weakness

• Ethereum held above $3,200 but faced overhead resistance
• XRP stalled near $2.28 after explosive early-year gains
• BNB fell below $900 despite network upgrades

Regulation

Stablecoin Rewards Debate Intensifies

Community banks are pushing for changes to stablecoin legislation, arguing current proposals create unfair advantages for crypto platforms. The debate centers on a $360 billion banking revenue stream that could be disrupted by stablecoin rewards.

Wyoming Launches State Stablecoin

Wyoming issued the first U.S. state-backed stablecoin, FRNT, on Solana. The token is managed by Franklin Templeton and represents a milestone in state-level digital currency adoption.

Technology

XRP Gains DeFi Access

Flare launched XRP spot trading on Hyperliquid through its FXRP wrapper token, enabling the first institutional-grade XRP trading on decentralized exchanges.

Ethereum Staking Dynamics Shift

Ethereum's staking queue grew significantly as the network reclaimed levels above $3,200, potentially impacting future price dynamics.

DeFi

Major Infrastructure Developments

• Lloyds Bank completed the UK's first gilt purchase using tokenized deposits
• Babylon Labs raised $15 million from a16z to develop Bitcoin collateral infrastructure
• IPOR Labs lost $336,000 in an Arbitrum vault exploit but vowed full user refunds

Quick Hits

• Solana Mobile set January 21 launch date for SKR token airdrop
• Riot Platforms sold $161 million in Bitcoin in December
• Tether and Rumble launched integrated crypto wallet
• Nike sold its NFT unit RTFKT amid cooling digital collectibles market
• Fireblocks acquired TRES for $130 million to expand into crypto financial reporting
• Polymarket partnered with Dow Jones to provide prediction data to Wall Street Journal
• xAI raised $20 billion with backing from Nvidia and Cisco
• [Ripple ruled out IPO plans](https://www.coindesk.com/markets/2026/01/07/ripple-again-rules-out-ipo-says-balance-sheet-gives-it-room-to-