Crypto heads into the second week of January jam-packed with crucial events. Here\u2019s what crypto holders need to know:<\/p>\n
Starting January 5, advisers across Bank of America Private Bank, Merrill, and Merrill Edge can recommend \u201cseveral crypto exchange-traded products (ETPs)\u201d for client portfolios, removing prior asset thresholds and shifting advisers from execution-only to active allocation guidance.<\/p>\n
In an early-December note tied to the rollout, Merrill\u2019s Chris Hyzy framed the bank\u2019s stance in portfolio-construction terms: \u201cFor investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate.\u201d<\/p>\n
The market relevance is less about one day of flows and more about plumbing. Bank of America is one of the largest US wealth distribution networks; even a modest allocation over the long-term could have significant price impact.<\/p>\n
Ethereum\u2019s latest scaling cadence continues on January 7 via the second \u201cBlob Parameter Only\u201d upgrade (BPO2), which increases the per-block blob target and maximum to 14 and 21, respectively, an incremental move designed to expand rollup data throughput without bundling the change into a larger named hard fork. The Ethereum Foundation has positioned the BPO track as a deliberately minimal, config-only mechanism to \u201csafely increase blob throughput\u201d after Fusaka<\/a>.<\/p>\n For L2 users, the direct linkage is data availability pricing. More blob supply, all else equal, can pressure blob fees lower, which is the component many rollups pass through into end-user transaction costs. The nuance is that these gains are conditional: if demand for blobspace ramps as quickly as capacity, fee relief can be muted, and operators still have to validate stability as targets rise.<\/p>\n #3 Hyperliquid (HYPE) Token Unlock<\/p>\n Hyperliquid\u2019s HYPE token has a scheduled supply event on January 6: Hyperliquid Labs team members are set to receive an initial 1.2 million HYPE allocation, valued at roughly $31.2 million. Core contributors hold rights to approximately 237 million tokens under a structured release plan, nearly one quarter of the total supply.<\/p>\n The setup for traders is straightforward: token unlocks are reflexively modeled as potential sell pressure, but the realized impact depends on recipient behavior and any offsetting mechanics.<\/p>\n #4 Stellar\u2019s Privacy Track Moves To Testnet<\/p>\n Stellar is scheduled to upgrade its testnet to Protocol 25, branded \u201cStellar X-Ray\u201d, on January 7 at 21:00 UTC, with the mainnet vote slated for January 22. In its developer guidance, Stellar explicitly calls out the operational requirement: SDK and infrastructure operators should upgrade ahead of the testnet date, with holiday timing cited as a reason for the unusually long runway between stable releases and activation.<\/p>\n On the product side, Stellar frames X-Ray as foundational privacy infrastructure: \u201claying the groundwork for developers to build configurable, compliance-forward privacy applications using zero-knowledge (ZK) cryptography,\u201d while keeping the network\u2019s transparency model intact.<\/p>\n Macro is doing crypto no favors in terms of clean narratives. Over the weekend, US forces captured Venezuelan President Nicol\u00e1s Maduro<\/a>, a move that pushed Bitcoin and crypto prices higher. Oil initially jolted but then softened amid expectations that near-term supply disruption is limited.<\/p>\n Geopolitically, the spillover risk is in escalation rather than the single event. US President Trump raised the possibility of further interventions in the region, including language around Colombia. Overall, the weekly US market open will be crucial for the week.<\/p>\n#5 Macro Outlook<\/h2>\n