Bitcoin rally masks fragile liquidity as spot volumes hit year-long lows

[The largest on-chain PEPE short position has a single-coin unrealized loss of $133,000] According to HyperInsight monitoring, the 'largest PEPE short position' whale on Hyperliquid has shorted 1,246,664,886 kPEPE (approximately $8.54 million) with 3x leverage, resulting in a single-coin unrealized loss of $133,000.

[Hedge Fund Karatage Appoints Shane O'Callaghan as Senior Partner] London-based proprietary hedge fund Karatage has appointed Shane O'Callaghan as Senior Partner and Head of Institutional Strategy. O'Callaghan previously served as Global Head of Institutional Partnerships and Digital Asset Sales at Dutch market maker IMC Trading and held roles as Global Head of Business Development at crypto trading platform Portofino Technologies and EMEA Head at crypto lending firm BlockFi. Founded in 2017 and headquartered in London, Karatage focuses on investing in digital assets, cryptocurrency funds, and blockchain-related companies.

[The People's Bank of China to Conduct 1.1 Trillion Yuan Reverse Repo Operation] On January 8, 2026, the People's Bank of China will conduct a 1.1 trillion yuan outright reverse repo operation through fixed-quantity, interest rate bidding, and multiple price bidding methods, with a term of 3 months (90 days).

[Fundstrat Analysts Predict 2026 Crypto Market Volatility and Asset Performance] Fundstrat's Head of Digital Asset Strategy, Sean Farrell, stated that Bitcoin's long-term target price is $1 million. He predicts a potential 'risk-off event' in the first half of 2026, during which Bitcoin may fall back to $60,000–$65,000. Improved liquidity and policy stimulus in the second half of the year could present growth opportunities. Ethereum's year-end target price is approximately $4,500, benefiting from the narrative of real-world asset tokenization. Solana is expected to decline to $50–$75 in Q1/Q2, followed by a rebound to $220–$260. Altcoins may perform strongly after the risk-off event, particularly tokens related to real-world assets.

[AIxCrypto Plans to Invest $10 Million in Faraday Future Common Stock] On January 7, Nasdaq-listed company AIxCrypto (AIXC) announced plans to make a strategic investment of $10 million in Faraday Future through the purchase of common stock. The company intends to use these shares as the underlying asset for its first tokenized equity product. AIxCrypto, formerly known as QLGN, rebranded and transitioned into a crypto and Web3 business platform last November, focusing on tokenized equity RWA (Real-World Asset) business.