Crypto news. January 26: BIG warning on DOGE and SHIB

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Additionally, convict Diem is dead, according to reports.

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Bitcoin recovers ahead of Fed meeting

Bitcoin managed to hit $38,000 as crypto markets continue their recovery for a second day. At the time of writing, BTC is up 4.77% in the past 24 hours. Ether and Binance Coin outperformed by 8.52% and 6.13% respectively. Both cryptocurrencies had suffered outsized losses during the selloffs earlier this week. Markets rallied ahead of the Federal Reserve meeting on Wednesday, where economists are expected to indicate interest rates will begin to rise in March.

Memecoins facing a purge, analysts warn

Bloomberg Intelligence’s Mike McGlone, who continues to maintain an optimistic tone on BTC, believes Bitcoin will prevail in the next 12 months, but warns that smaller altcoins could face aggressive selling similar to the internet purge in 2000-01. McGlone then compared Dogecoin and SHIBA INU with AOL and Pets.com. Looking ahead, $30,000 is seen as key support for Bitcoin and, indeed, BTC managed to bounce off $33,000 on Monday.

Ditch BTC as legal tender, El Salvador said

El Salvador is urged to abandon Bitcoin as legal tender. The International Monetary Fund says the use of cryptocurrency creates “great risks” with respect to “financial stability, financial integrity, and consumer protection.” In a statement, the IMF went on to warn that El Salvador’s public debt is expected to reach 96% of GDP in 2026, describing it as on an “unsustainable path”. Nayib Bukele was typically dismissive of the warning by responding with a Simpsons meme.

Facebook’s digital currency Diem ‘is dead’

Diem the digital currency that Facebook wanted to launch is dead, according to reports. Bloomberg News claims that the Diem Association plans to start selling its intellectual property and that the engineers who worked on the project could be transferred to other companies. Media sources suggest it amounts to “cash-in remaining value” in the beleaguered project, which has faced a firm pushback from regulators from the start.

Bitcoin ‘could be worth $1.36 million by 2030’

A single Bitcoin could be worth $1.36 million by 2030, according to a new bullish report from ARK Invest. However, this is dependent on increased adoption by countries, asset managers and S&P 500 companies. could be multiplied by 25 over the next decade. At the time of the report’s preparation, BTC had a market capitalization of $1.1 trillion, compared to $10 trillion for gold and $106 trillion for global stocks.

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