The cryptocurrency market faced a sharp correction in the early hours of January 26, with BTC erasing its entire monthly progress. After peaking at $97,000 on January 14, Bitcoin slid approximately 10.9% to briefly dip below the $87,000 mark. This volatility has pushed the January return to -0.5%, reflecting a broader “risk-off” sentiment across the digital asset space. The pullback is being attributed largely to rising uncertainty around U.S. government shutdown, alongside broader risk-off sentiment across global markets.The GameFi sector bore the brunt of the sell-off, dropping nearly 5%, led by double-digit losses in Axie Infinity (AXS). While Ethereumfell below $2,900, some assets showed resilience; notably, River (RIVER) surged 30% and Beam (BEAM) rose 19%, suggesting that despite the macro-level decline, specific project catalysts continue to drive isolated pockets of growth.
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Matcha Meta has confirmed a significant security breach involving SwapNet, resulting in the theft of approximately $16.8 million in crypto assets. According to PeckShieldAlert, the vulnerability specifically targeted users who opted out of “One-Time Approvals,” leaving persistent allowances open to exploitation. On the Base network, the attacker converted roughly $10.5 million USDC into 3,655 ETH before beginning to bridge those funds to the Ethereum mainnet. The SwapNet team has since suspended the affected contracts to contain the damage. Security experts strongly advise all users to immediately revoke approvals for any individual aggregators outside of the standard 0x One-Time Approval contracts to secure their remaining funds.