Gate Daily (January 26): Entropy concludes operations and refunds funds; Colombia's pension fund offers BTC investment opportunity

Bitcoin (BTC) experienced a slight rebound after a deep decline, currently around $87,177 as of January 26. The decentralized custody startup Entropy, supported by a16z, is gradually winding down operations and returning funds to investors. Colombia’s second-largest pension fund AFP Protección will offer Bitcoin investment opportunities.

Macro Events & Crypto Hotspots

1. Tux Pacific, founder of Entropy, announced that the crypto startup will close after four years of operation and will return remaining funds to investors. The company raised approximately $27 million, including a $25 million seed round led by a16z crypto in 2022. Pacific stated that after multiple pivots and two rounds of layoffs, they still could not find a business model at the venture capital scale. The founder plans to take a break and then continue research on hormone delivery-focused pharmaceuticals.

2. Colombia’s second-largest private pension and severance fund management company AFP Protección is preparing to launch a Bitcoin investment fund. Juan David Correa, President of Protección SA, confirmed this plan in an interview with local media Valora Analitik. Correa said that access to the product will be restricted and only granted through a personalized consultation process designed to assess each investor’s risk tolerance. Only clients meeting certain criteria will be able to allocate part of their portfolio to Bitcoin.

News & Updates

1. After Huang Licheng’s ETH long position was fully liquidated, a new ETH long was opened, with total losses exceeding $25 million.

2. Spot silver broke through $107 for the first time this month, with an increase of over $35.

3. WLFI transferred rewards from a USD1 holding activity from the treasury into Binance, totaling $40 million worth of WLFI tokens.

4. World Liberty Finance sold 93.77 WBTC for 2,868.4 ETH.

5. Japan may lift the crypto ETF ban in 2028, with SBI and Nomura pushing to develop related products.

6. a16z-supported Entropy will close and return remaining funds to investors.

7. a16z Crypto: Quantum threats are exaggerated; protocol governance and upgrade coordination are the biggest challenges for public chains.

8. US crypto legislation accelerates, with a market structure bill aiming to clarify regulatory boundaries, benefiting retail investors.

9. Michael Saylor once again posted Bitcoin tracker updates, with potential disclosure of increased holdings next week.

Market Trends

1. Latest Bitcoin news: $BTC experienced a slight rebound after a deep decline, currently around $87,177. In the past 24 hours, $234 million in liquidations occurred, mainly longs.

2. Major US stock indices closed lower on January 23: Dow Jones down 285.3 points, or 0.58%, to 49,098.71; Nasdaq up 65.225 points, or 0.28%, to 23,501.244; S&P 500 up 2.26 points, or 0.03%, to 6,915.61; Philadelphia Semiconductor Index down 97.247 points, or 1.21%, to 7,957.926.

(Source: Gate)

3. According to Gate’s BTC/USDT liquidation map, with the current price at $86,632.30 USDT, a decline to around $85,849 will result in over $89.89 million in long liquidations; an increase to around $89,510 will trigger over $677 million in short liquidations. Short liquidations significantly outweigh longs, so it’s advisable to control leverage ratios to avoid large-scale liquidations during market volatility.

(Source: Coinglass)

4. In the past 24 hours, BTC spot inflow was $1.51 billion, outflow was $1.83 billion, net outflow $320 million.

(Source: Coinglass)

5. In the past 24 hours, net outflows led by contracts such as $RIVER, $1000PEPE, $NOM, $AUCTION, $B2 , indicating trading opportunities.

Selected Opinions from X KOLs

Phyrex Ni (@Phyrex_Ni): “Recent weekends have been better, but today’s work is hard to do. Just finished Greenland’s tariffs, wanted to take a breather, but BTC is dropping again, and it’s been quite sharp over the weekend. There could be three scenarios: first, Trump is very dissatisfied with a trade agreement between Canada and China, as I mentioned yesterday, but today he posted two articles warning Canada.”

“Trump is never stingy with using tariffs as weapons, so the market is worried that Canada and China might jointly resist on Monday. Although it’s still verbal, if a ‘confrontation’ really forms, the market will definitely react to the expected risks. TACO could happen, but the market won’t be indifferent.”

“Besides tariffs, the US and Japan might coordinate to intervene in the yen exchange rate. It’s less severe than tariffs, but intervention could impact arbitrage markets, especially with such a sensitive asset as the yen. Third, the US government shutdown risk has increased again, with the budget expiring on January 31.”

“Currently, Kalshi’s probability of a government shutdown has surged to 78.5%. However, this shutdown might not be as comprehensive as last October, as some agencies have secured full-year budgets and won’t shut down. Even if a shutdown occurs, it’s unlikely to be larger than October’s.”

“Back to Bitcoin data: turnover has increased, indicating market panic. There are three bearish factors, and investors are probably overwhelmed. This is still the weekend, before US markets open. In a few hours, we’ll see how Asian investors perform, then US investors. Honestly, I’m quite worried. Tariffs have been repeatedly used as weapons by Trump, and each time the results are poor. Seeing the market react badly, Trump might TACO again. Why bother?”

Today’s Outlook

1. Germany January IFO Business Climate Index

2. US November Durable Goods Orders (monthly initial estimate), previous -2.2%

3. Australia National Day holiday, markets closed