As another week passes by, the crypto market is abuzz with big stories and new headlines. The list includes Arthur Hayes predicting a Bitcoin slump to $70,000 and how DeepSeek sent shockwaves through the industry.

This week also saw Grayscale submit ETF filings for Litecoin and Solana with the SEC, alongside rumors suggesting the regulator may dismiss the Ripple lawsuit.

Arthur Hayes Predicts a Mini-Financial Crisis for Bitcoin

Arthur Hayes, former CEO of BitMEX, has revised his short-term Bitcoin forecast. Earlier this month, he predicted that Bitcoin would peak in mid-March before experiencing a significant correction.

However, Hayes updated his outlook this week, stating that BTC is already on the verge of this decline.

“Reversing the order of my tryptic essay series. I am calling for a $70,000 to $75,000 correction in BTC, a mini financial crisis, and a resumption of money printing that will send us to $250,000 by the end of the year,” Hayes claimed.

Hayes’ short-term bearish outlook for Bitcoin was driven by the worsening global fiat liquidity environment. This is caused by rising US 10-year Treasury yields, a tightening Federal Reserve, and reduced money printing in major economies such as the US, China, and Japan.

Hayes argued that Bitcoin is particularly sensitive to shifts in global liquidity conditions, which could lead to the predicted slump. At press time, Bitcoin was trading at $104,709, down 0.3% over the past 24 hours.

Grayscale Seeks SEC Approval for Solana and Litecoin ETFs

Grayscale, one of the largest crypto asset management firms, has submitted applications with the SEC for ETFs tracking both Litecoin and Solana. The firm’s Litecoin ETF marks only the second such filing, following Canary Capital’s application in October.

Moreover, according to ETF analysts Eric Balchunas and James Seyffart, a Litecoin or Hedera ETF is more likely to win SEC approval earlier than Solana.

“We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the BTC + ETH combo ETFs, then probably Litecoin (because its a fork of BTC, [therefore it’s a] commodity), then HBAR (because it’s not labeled a security) and then XRP/Solana (which have been labeled securities in pending lawsuits),” Balchunas claimed.

It appears their predictions are coming true, as the SEC has already approved combined Bitcoin and Ethereum ETFs.

Nevertheless, the Grayscale application did not significantly impact Litecoin prices. At press time, LTC was trading at $131.60, up 1.2% over the past 24 hours.

ZachXBT Tracks Down $29 Million SUI Token Exploit

Blockchain investigator ZachXBT recently exposed the loss of $29 million worth of SUI tokens in December 2024. On January 26, ZachXBT disclosed details of the exploit, which targeted a major holder on the Sui network.

The attacker reportedly siphoned off 6.27 million SUI tokens, valued at $29 million, on December 12. The stolen assets were transferred from Sui to Ethereum using bridging tools, then laundered through Tornado Cash in smaller portions to obscure the trail.

“The victim transferred their .sui domains to a new uncompromised address shortly after the theft. Current limitations with Sui block explorers and Sui analytics tools make the theft difficult to trace,” ZachXBT said.

ZachXBT made headlines in January after he revealed that he helped the US government recover a substantial portion of $20 million stolen in a hack. 

DeepSeek Causes Major Crypto Sell-Off, $800 Million Liquidated in Just One Day

The unveiling of Chinese AI startup DeepSeek has coincided with a sharp sell-off in the crypto market.

Founded less than two years ago, DeepSeek has risen to prominence, positioning itself as a competitor to established AI giants like OpenAI, Meta, and Nvidia. With a development cost of under $10 million, DeepSeek has emerged as a disruptive competitor, sparking debate among experts about its long-term implications. 

DeepSeek’s rise caused Bitcoin (BTC) to drop over 5% in a matter of hours, with major altcoins seeing even steeper declines of 8–10%. According to data from Coinglass, in 24 hours, 315,090 traders were liquidated on January 27, with the total liquidations crossing $800 million.

Some attributed the market crash to DeepSeek’s rising popularity and its potential impact on the stock market. Ash Crypto, an industry veteran, is among those who link the volatility to broader market reactions triggered by DeepSeek’s rapid rise.

“This has nothing to do with the crypto market and everything to do with the US stock market,” he explained.

Ash Crypto linked the crypto downturn to a reevaluation of overvalued tech stocks, citing DeepSeek’s competitive edge as one reason. The AI crypto segment also suffered in the aftermath of DeepSeek’s rise, with the market cap of AI crypto tokens dropping by double-digits.

Is Ripple vs. SEC Over?

 The SEC may have dropped its lawsuit against Ripple without announcement. The Commission removed references to the case from its website, but other crypto lawsuits are still visible.

Social media users noticed that the SEC’s website removed all references to this suit.

“Is Ripple Free from the SEC? Searched for “Ripple” in the SEC’s litigation section and… No results! Did the legal battle just end? Is this the final chapter of Ripple vs SEC? If true, this could be a historic moment for XRP,” influencer John Squire claimed on X (formerly Twitter).

Commentators have also noted that other suits, such as the one against Kraken and Coinbase, are still on the website.

However, one attorney claimed that the suit is still active in Pacer, a government website that provides access to federal court records.

“The SEC website does not matter. The appeal is still open in the Court’s nationwide PACER system. I just logged in. The last entry is Ripple’s request for a time extension to file its Brief. The case status is still shown as active,” he claimed.

At a hearing in the US District Court for the Southern District of New York, Binance sought to dismiss a lawsuit filed by victims affected by the Hamas attack on Israel.

The lawsuit was filed in 2024 by Judith Raanan, a survivor of the Hamas hostage-taking during the 2023 attacks. The victims accused the crypto exchange of playing a role in facilitating the violence

Binance Challenges Claims of Aiding Hamas in Court

During the hearing on January 30, Binance’s legal team argued that the claims should be dismissed. They pointed out that there was no direct relationship between Hamas and the exchange.

“There was no special relationship between Hamas and Binance,” the lawyers argued.

The 2024 lawsuit alleges that Binance played a role in facilitating terrorism by aiding Hamas and other organizations linked to violence.

Binance, along with former CEO Changpeng Zhao (CZ), faces accusations of non-feasance. They failed to prevent money laundering and did not file Suspicious Activity Reports (SARs). These failures allegedly enabled Hamas to use the platform for financial transactions. 

Binance lawyers highlighted during the court hearing that crypto is not “inherently dangerous.” The defense then downplayed allegations that CZ had admitted to assisting terrorism in a plea agreement, arguing that the comments related to keeping US users on the platform. The lawyers added that it was not an admission of guilt in aiding terrorist activities. 

However, US District Judge John G. Koeltl appeared unconvinced by Binance’s defense. He emphasized that secondary liability for aiding and abetting terrorism is challenging to dismiss outright. 

He also noted the gravity of the position that Binance could take – one where it accepts terrorist accounts and treats them like any other user.

The lawsuit accuses Binance of enabling the transfer of funds to Hamas, despite being aware of the group’s activities on the platform. 

“Binance was told, Hamas is on your platform. They didn’t seize their funds, they helped them leave and told them they were flagged, facilitating,” the lawyer for the plaintiffs said.

Judge Koeltl indicated that he would rule on the motion to dismiss at a later date, leaving the case in legal limbo for now.

Nevertheless, it appears Binance’s legal troubles are never-ending. A Spanish court recently opened an investigation into Binance for alleged misappropriation of funds in 2021. Moreover, French authorities have also launched an investigation into Binance. The exchange is accused of money laundering, tax fraud, and drug trafficking.

XRP has remained in a consolidation phase for the past two weeks, preventing it from establishing a new all-time high (ATH). 

While the altcoin continues to hold above a key support level, it struggles to gain the necessary momentum for a breakout. A shift in investor behavior could change this trajectory.  

XRP Investors Are Facing Losses

XRP’s transaction volume has been largely dominated by losses. As a new ATH remains elusive, investors have begun moving their holdings. This trend has resulted in many XRP holders facing losses on their transactions for the past two weeks, impacting overall market confidence.  

If this pattern continues, traders may begin pulling back from participation, reducing transaction activity. A decline in on-chain engagement could negatively affect XRP’s price, increasing the risk of extended consolidation or a potential drop below key support levels.  

The MVRV Long/Short Difference indicates that long-term holders (LTHs) remain in profit, benefiting from XRP’s recent price action. These investors have yet to move toward selling, demonstrating resilience despite short-term volatility. Their continued holding is critical to maintaining stability.  

If LTHs maintain their positions, XRP’s price is less likely to experience a sharp correction. This behavior signals confidence in the asset’s long-term potential. It also suggests that XRP could sustain its uptrend if market conditions remain favorable.  

XRP Price Prediction: Uptrend To a New High

XRP is currently experiencing a micro uptrend after bouncing off the $2.95 support level. While the altcoin briefly fell below this level during an intraday low, it quickly recovered and remained above the trend line. This reinforced the bullish momentum.  

The cryptocurrency now sits less than 10% away from forming a new ATH beyond $3.40. If the uptrend continues and long-term holders remain steadfast, XRP could break past this resistance and set a new price record in the coming days.  

However, if XRP retests $2.95 and fails to hold this support, the price could decline further. A break below this level would increase bearish pressure. This could potentially push XRP down to $2.73 or lower, invalidating the bullish thesis.