January 2 Work Commute Podcast — Slight Upward Movement in Sideways Market… 82% Short Covering · Safety Risks Highlighted

As of 5:00 a.m. on January 2, 2026, the cryptocurrency market shows a slight upward trend amid fluctuations. Bitcoin has increased by 0.91% compared to the previous day, trading at $88,235; Ethereum also rose by 0.74% to $2,990, approaching the $3,000 mark. The total market capitalization of cryptocurrencies is approximately $2.99 trillion, nearing the $3 trillion threshold.

However, trading volume has not provided support. The total trading volume over the past 24 hours is about $63.6 billion. Despite the price increases of Bitcoin and Ethereum, trading volumes in derivatives and decentralized finance markets have decreased. This indicates that the market is simultaneously optimistic about upward movement and cautious, engaging in risk management.

In the altcoin market, short-term funds are concentrated in certain coins. Dogecoin surged by 7.13%, Cardano soared by 7.36%, and Solana and XRP each recorded gains of over 0.9%. BNB experienced a slight decline. Under this trend, Bitcoin’s dominance has slightly decreased to 58.93%, with short-term funds shifting toward some altcoins.

From a sector perspective, a more cautious atmosphere is evident. The DeFi market’s 24-hour trading volume has decreased by over 9%, while stablecoins and derivatives markets saw trading volume drop by 25% and 27%, respectively. This is interpreted as a sign of increased caution regarding leverage use in the market.

Meanwhile, summaries of security incidents throughout 2025 have heightened market vigilance. Last year, the top ten hacking incidents in the cryptocurrency industry resulted in total losses of $2.2 billion. The largest case was the Bybit hack in February, with losses of about $1.4 billion, suspected to be carried out by North Korea’s Lazarus Group. Additionally, attack methods are becoming increasingly sophisticated, including system logic attacks using false code, exploits of stablecoin pool calculation vulnerabilities, and abuse of smart contract administrator privileges.

There are also differing opinions regarding ETFs. Ben Slavin, Global Head at BNY Mellon, predicts that although Bitcoin ETFs have grown to hold about 7% of circulating supply, it is difficult for altcoin ETFs to reach this level due to high volatility and market sensitivity of altcoins. Conversely, Monica Long, CEO of Ripple Labs, emphasizes that ETFs could serve as an opportunity to expand participation by institutions and corporations, holding long-term significance.

The recent price increase is attributed to a large-scale short squeeze. Over the past 24 hours, more than $30 million in leveraged positions have been liquidated, with 82% of these being short positions betting on a decline in price. Liquidations mainly occurred on Binance and Bybit, with Litecoin, Bitcoin, and Ethereum leading in liquidation volume. In the case of surging altcoins like Dogecoin and AVAX, short liquidations are also particularly notable.

Market analysis suggests that the upward momentum driven by short covering may continue in the short term, but it is also necessary to consider structural variables such as declining trading volume, security risks, and macroeconomic environment. Although macro factors like quantitative easing may be beneficial for Bitcoin in the long run, challenges such as risks in centralized infrastructure and security vulnerabilities are also increasingly prominent.