There are a few main trends in the crypto space worth paying attention to these days. First, regarding the market sentiment, overall mood has weakened today, and mainstream cryptocurrencies are all experiencing pullbacks. Bitcoin has fallen below $92,000, with a 24-hour decline of about 1.6%; Ethereum hovers around $3,225, with a minimal drop of 0.04%, but its momentum has clearly weakened. Interestingly, there is a divergence in capital flows—Ethereum spot ETFs have seen inflows for three consecutive days (about $115 million on Tuesday), while Bitcoin spot ETFs are bleeding, with outflows of approximately $243 million.

The performance of Meme coins is even more dramatic. The project called "114514" once surged to a market cap of $57 million, but within 24 hours, it plummeted over 90%, reducing its market cap to less than $4 million. Popular Meme coins like PEPE and BONK have also generally retreated from recent highs. Market sentiment indicators are also speaking— the Fear and Greed Index is now at 42, slightly higher than a few weeks ago, but still in the "Fear" zone, indicating retail investors are clearly lacking confidence.

On the policy front, the U.S. Senate Banking Committee has scheduled a hearing. On January 15, 2026, the "Crypto Market Structure Act" (commonly known as the Clarity Act) will enter the review and voting phase. The core of this bill is to clarify the responsibilities between the SEC and CFTC in digital asset regulation, which many industry insiders see as potentially game-changing legislation. The committee chair has vowed to push this forward "at all costs," aiming to get it done by the end of January. Galaxy Research’s lead analyst estimates the bill has about a 60% chance of passing, but ultimately it depends on whether both parties can reach consensus on issues like DeFi regulation.

There is also important technical news. Ethereum successfully launched the BPO-1 upgrade today, increasing the Blob capacity per block from 6 to 15. This has a significant impact on Layer 2 ecosystems—transaction fees on scaling solutions like Arbitrum and Optimism are expected to decrease substantially, and throughput will improve.

Overall, the current phase is characterized by "adjustment and observation." After the early-year rebound, the market is taking profits, and the upcoming U.S. Senate vote is likely to become a key event influencing the industry’s future direction.