Bitcoin price dip has sent ripples through the crypto market, with the flagship cryptocurrency briefly touching $60,000 following significant liquidations in crypto derivatives markets. These liquidations reached a staggering $2.56 billion, marking the 10th-largest daily total on record.
Cryptocurrency markets faced a brutal sell-off this week amid growing investor anxiety over stagnating U.S. liquidity. This concern stems from President Donald Trump’s nomination of Kevin Warsh to lead the Federal Reserve.
Related Crypto news reveals that Bitcoin exchange-traded funds (ETFs) experienced three consecutive days of outflows, with $431 million exiting on Thursday, according to data from Farside Investors. Bitcoin’s price briefly dipped to $60,074 on Friday before recovering above $64,930 as of 7:49 a.m. UTC.
Warsh, a former Fed governor from 2006 to 2011, is expected to maintain the current interest rate cut trajectory. Kraken economist Thomas Perfumo suggests his nomination might indicate that broader market liquidity will “stabilize rather than meaningfully expand.”
The crypto industry’s 10th-largest liquidation event occurred on January 31, wiping out over $2.56 billion in leveraged positions, according to CoinGlass.
TRM Labs completes $70M investment round at $1B, becomes crypto unicorn
Blockchain intelligence platform TRM Labs completed a $70 million Series C funding round, valuing it at $1 billion, making it the latest crypto company to achieve unicorn status.
The investment round was led by seed investor Blockchain Capital, with participation from Goldman Sachs, Bessemer Venture Partners, Brevan Howard Digital, Thoma Bravo, Citi Ventures, and Galaxy Ventures, according to a Wednesday news release.
TRM Labs aims to provide public and private institutions with AI solutions to combat cybercrime, defending against illicit activities increasingly reliant on automation.
“At TRM, we’re building AI for problems that have real consequences for public safety, financial integrity, and national security,” wrote Esteban Castaño, co-founder and CEO of TRM Labs.
“This funding allows our world-class team — and the people who will join us next — to innovate alongside institutions on the front lines of the most consequential threats, and expand the potential of AI to meaningfully improve how our critical systems are protected.” The $70 million round indicates that capital is flowing into blockchain analytics platforms aimed at stopping AI-fueled scams and cyberattacks, including from major traditional institutions.
Avalanche tokenization hits Q4 high
Blockchain network Avalanche saw increasing institutional adoption across tokenized money market funds, loans, and indexes in the fourth quarter, driving the value of real-world assets (RWAs) on the layer 1 to a new high.
The total value locked of tokenized RWAs on Avalanche rose 68.6% over the fourth quarter of 2025 and nearly 950% over the year to more than $1.3 billion, boosted by the $500 million BlackRock USD Institutional Digital Liquidity Fund (BUIDL) that launched in November, Messari research analyst Youssef Haidar said in a Jan. 29 report.
Fortune 500 fintech FIS partnered with Avalanche-based marketplace Intain to launch tokenized loans in November, further boosting Avalanche’s TVL, Haidar said. Intain enables 2,000 US banks to securitize over $6 billion worth of loans on Avalanche.
The S&P Dow Jones also partnered with Dinari, an Avalanche-powered blockchain, to launch the S&P Digital Markets 50 Index, which tracks 35 crypto-linked stocks and 15 crypto tokens on Avalanche.
Traditional finance firms are increasingly confident about experimenting with tokenization, as the Securities and Exchange Commission has become more open to crypto products over the past year.
ParaFi Capital invests in Solana-based Jupiter
Jupiter said it has secured a $35 million strategic investment from ParaFi Capital, marking the first time the Solana-based onchain trading and liquidity aggregation protocol has taken outside capital after years of bootstrapped growth.
The transaction involved token purchases at market prices with no discount and an extended lockup period and was settled entirely in Jupiter’s JupUSD stablecoin, the companies said. Financial terms beyond the $35 million investment were not disclosed.
The investment comes as Jupiter has processed more than $1 trillion in trading volume over the past year and expanded beyond swap routing into perpetuals, lending and stablecoins, according to the company. The Bitcoin price dip is one factor impacting the wider market conditions.
The deal also included warrants allowing ParaFi Capital to acquire additional tokens at higher prices, a structure the companies said was intended to reflect long-term alignment.
The investment follows a recent expansion of Jupiter’s product offerings. In October, Jupiter rolled out a beta version of its onchain prediction market developed with Kalshi, followed in January by the launch of JupUSD, a Solana-native, dollar-pegged stablecoin built in partnership with Ethena Labs.
The recent Bitcoin price dip highlights the volatility inherent in the crypto market.
Source: Cointelegraph
