Crypto markets saw the biggest short squeeze since October as short positions were liquidated and Bitcoin outperformed the US dollar amid geopolitical uncertainty. Cryptocurrency markets staged their largest short squeeze since the selloff in early October, as a rebound in prices forced bearish traders to unwind positions and fueled hopes of a broader recovery. Short liquidations across crypto futures and perpetual contracts climbed to about $200 million on Wednesday, the highest level since about $1 billion in short positions was wiped out during the October market crash, according to data shared by analytics firm Glassnode. The company said that it was the biggest short liquidation event across the 500 largest cryptocurrencies since the Oct. 10 selloff. The rebound follows a significant recovery in investor sentiment, which has flipped from fear to greed for the first time since early October, Cointelegraph reported earlier on Thursday. Read more
General-purpose blockchains can’t solve industry disputes over construction changes or equipment usage. Specialized layer 1s are optimized for stateless audit trails and regulatory compliance. Opinion by: Steven Pu, co-founder of Taraxa Across verticals, the same pattern shows up again and again, and it has nothing to do with decentralization. Businesses rush toward blockchain solutions to solve their daily operational nightmares — only to discover that Ethereum and Solana can’t actually address them. Consider a construction foreman who approved a last-minute design change over a quick phone call, only to get sued six months later when the customer says they never agreed to it. Or consider an equipment leasing company that watches its revenue share evaporate because clients dispute sensor data showing machine usage — data that could have been tampered with before reaching the blockchain. Read more
Industry leaders say transaction-level taxes and loss restrictions are draining liquidity as India tightens crypto compliance and enforcement. India’s crypto industry is renewing calls for tax reform ahead of the country’s February Union Budget, arguing that the current framework is discouraging onshore activity as regulatory compliance requirements continue to tighten. India’s current crypto tax framework, introduced in 2022, levies a flat 30% tax on crypto gains and applies a 1% tax deducted at source (TDS) on most transactions, whether they are profitable or not. At the moment, losses from trades can't be used to offset gains. Executives from major domestic exchanges say the existing tax regime, particularly transaction-level taxes and restrictions on loss setoffs, no longer reflects how the global digital asset market has evolved, nor India's own progress in strengthening oversight and enforcement. Read more
A pickup in Bitcoin spot demand and persistent spot ETF inflows could push BTC above the next significant hurdle at $98,000 and secure a sustained recovery. Bitcoin (BTC) rallied 10% from its yearly open near $87,500 before stalling below resistance, but analysts say the price remains positioned for higher targets if key supply levels are reclaimed and spot demand continues to build. Key takeaways: Bitcoin must take out resistance at $98,000 to trigger a rally to a six-figure BTC price. Read more
Sygnum predicts US crypto regulation will spur sovereign Bitcoin reserves and accelerate tokenized bond issuance by major financial institutions in 2026. US regulatory developments may unlock a new phase of blockchain adoption in 2026, including sovereign Bitcoin reserves and a broader shift by banks toward tokenized financial infrastructure, according to a report by crypto banking group Sygnum. The highly anticipated CLARITY Act and potential passage of the Bitcoin Act may provide the legal framework that sovereign actors have been waiting for, Sygnum forecast in a Thursday report shared with Cointelegraph. The company said clearer rules in the US may inspire more trust in Bitcoin (BTC) as a treasury asset globally, predicting that at least three G20 or G20-equivalent economies will publicly add Bitcoin to their sovereign reserves. Read more
Bitcoin nears two-month highs as RSI divergence and a bullish MACD cross build, with BTC eyeing $101,000 as the next major reclaim level for trend confirmation. Bitcoin (BTC) bull signals are persisting as price hits new two-month highs near $98,000. Key points: Bitcoin price leading indicators point to bullish continuation after two-month highs. Read more
The London Stock Exchange's new Digital Settlement House uses tokenized bank deposits for instant, round-the-clock settlement across blockchain and traditional payment networks. The London Stock Exchange Group has rolled out a new digital settlement service to bring commercial bank money onto blockchain rails. The service, called Digital Settlement House (DiSH), enables instant settlement across both blockchain-based and traditional payment networks, operating around the clock across multiple currencies and jurisdictions, according to a Thursday announcement. At the core of the platform is DiSH Cash, a ledger-based representation of commercial bank deposits. Rather than relying on stablecoins, the system uses tokenized claims on actual bank deposits, providing what LSEG describes as a “real cash leg” for foreign exchange, securities and digital asset transactions. Read more