Today in Crypto: The crypto market shaved $100 billion amid geopolitical turmoil, Foundry USA has curtailed its hashrate by 60% amid a winter storm and a Colombian private pension will launch an investment fund with exposure to Bitcoin.
Crypto shaves $100B as geopolitical turmoil mounts
Around $100 billion was wiped from the crypto market late on Sunday as geopolitical uncertainty and fears of another potential partial US government shutdown caused traders to sell off.
Senate Democrat Leader Chuck Schumer threatened to block a funding package if it included money for the Department of Homeland Security, which oversees Immigration and Customs Enforcement, after federal agents shot and killed a man in Minneapolis on Saturday.
Adding to traders’ fear was US President Donald Trump’s threat to raise tariffs on Canada to 100% if the country strikes a deal with China, and the US military deploying warships to the Middle East amid rising tensions with Iran.
The crypto market cap dropped from $2.97 trillion to $2.87 trillion in six and a half hours by Sunday at 9:30 pm UTC, pushing Bitcoin (BTC) down 3.4% over the last 24 hours. Altcoins were hit even harder, with Ether (ETH) down 5.3% in the last day.
Odds on Kalshi of a government shutdown by Jan. 31 surged from below 10% on Saturday to 78.6% on Sunday, while Polymarket’s odds showed a similar surge to 80%.
Foundry USA hashrate down 60% as miners adjust to deadly winter storm
The hashrate of Foundry USA, the world’s largest Bitcoin (BTC) mining pool by total hashing power, has curtailed its hashrate by about 60% since Friday, as winter storm Fern impacts multiple regions across the United States.
“Bitcoin hashrate on Foundry USA alone is down by nearly 200 exahashes per second (EH/s), or 60%, since Friday amid continued curtailment. Temporary block production has slowed down to 12 minutes,” according to TheMinerMag.
Foundry USA’s hashrate clocks in at about 198 (EH/s), accounting for about 23% of the global mining pool hashrate, and still commands a lead over its biggest competitor, AntPool, which controls about 16% of hashing power, data from Hashrate Index shows.
Winter storm Fern has already left about 1 million residents without electricity, according to The Weather Channel, as it forces US-based miners to curtail their energy usage in response to peak demand and major stress on the public electrical grid.
Colombia’s second-largest pension fund to offer Bitcoin exposure
Colombia’s second-largest private pension and severance fund manager, AFP Protección, is preparing to launch an investment fund with exposure to Bitcoin.
Juan David Correa, president of Protección SA, confirmed the initiative during an interview with local outlet Valora Analitik. According to Correa, access to the product will be limited and granted only through a personalized advisory process designed to assess each investor’s risk profile. Only clients who meet specific criteria will be able to allocate a portion of their portfolios to Bitcoin (BTC).
“The most important element is diversification,” Correa noted, adding that “those who can participate will find a space for a percentage of their portfolio, if they so wish, to be exposed to this type of asset.”
Protección’s move follows a similar step by Skandia Administradora de Fondos de Pensiones y Cesantías, which began offering Bitcoin exposure in one of its portfolios in September last year. With this launch, Protección becomes the second major pension fund administrator in Colombia to enter the digital asset space.
