Government-Backed Stablecoins: Why They Are Needed by the Market
Stablecoins have long become an important part of the crypto economy, but today the market is taking a step further — towards government-backed stablecoins. These are digital assets tied to national currencies and supported at the level of government or regulated structures. One such example is $KGST . Such stablecoins combine the advantages of blockchain (transparency, speed, low fees) and the stability of traditional finance. For users, this means a more reliable tool for payments, value storage, and international transfers without high volatility.
Government stablecoins are becoming an important part of the digital economy. $KGST — is an example of a stablecoin pegged to a national currency, which combines the transparency of blockchain and the stability of traditional finance. Such assets can simplify payments and increase trust in crypto.
#stablecoins Government stablecoins are a new stage in the development of the crypto market. $KGST — an example of a digital asset tied to the national currency and supported by the state. Such stablecoins reduce volatility, simplify transactions, and can become a bridge between traditional finance and blockchain.
Bitcoin is heading toward its longest correction since 2018 — the market has been declining for four straight months. Such extended pressure is rare and usually means weak hands and excess leverage are being flushed out.
After long drawdowns, the market typically either moves into a consolidation phase or prepares for a shift in the medium-term trend.
On-chain metrics show: the number of bitcoins at a loss is still too low to speak of a full-blown bear market day. Historically, reversals only began when losses became widespread and the market entered a phase of capitulation.
Right now, we see not panic, but pressure and redistribution. This means that sharp movements and liquidity shakeouts are possible ahead — before a truly sustainable foundation for growth appears.
Liquidity data suggests Bitcoin is currently undervalued, while gold looks increasingly overextended. Momentum indicators highlight a clear divergence: BTC is sitting near the lower end of its range, while gold is trading close to the top.
As liquidity returns to the market, capital tends to rotate toward assets with asymmetric upside — where risk is already priced in, but upside remains open. In these phases, Bitcoin has historically outperformed traditional safe havens.
According to Polymarket, the probability of a US government shutdown by January 31 has jumped to 77%. Just weeks ago, this scenario was considered unlikely.
For markets, this means one thing: risk-off mode.
Stocks usually come under pressure. Volatility rises. Crypto often reacts negatively in the short term due to shrinking liquidity.
At the same time, demand for defensive assets grows, and expectations for Fed policy easing start to build.
Uncertainty always moves markets — before prices do.
This year taught the main thing: crypto is not about quick gains, but about patience, a cool head, and the right decisions.
We experienced volatility, fake pumps, disappointments, and doubts. But the market remains, which means opportunities haven't disappeared.
In 2026, it’s important to remember simple things: • don’t chase hype • manage risks • think with your head, not emotions • and enter the market when most are doubtful
New Year is not a promise of gains. It’s a chance to enter smarter than last time.
May the next cycle be profitable, and decisions be balanced. See you in the market.
📊 The market is waking up — altcoins are starting to come alive
After several weeks of sideways movement, many altcoins are showing the first signs of reversal: volumes are increasing, liquidity is returning, and volatility is rising again.
What does this mean for newcomers? This is the moment when the market starts to "feel out" new levels — such phases often become the first signals before a larger movement.
What is important to remember now: • ✔️ Don't chase pumps — look at the fundamentals • ✔️ Keep risk low • ✔️ Monitor assets that are seeing returning volume (they usually rise first) • ✔️ Don't overload the portfolio with meme coins — the market is changing
If the current momentum consolidates, the market may finally break out of a prolonged pause and enter a phase of confident growth.
We are monitoring the volumes — they tell the truth.
The market is starting to come alive — spot volumes are rising, buyers are activating, and the activity of major players is noticeable again. After a prolonged correction, $BTC is gradually regaining momentum.
The key zone right now is $105,000, where large liquidity and profit-taking orders are concentrated. If the price consolidates above this level, one can expect movement towards $115,000–$120,000 and a new historical maximum.
An additional bullish signal — funds have started to flow back into BTC-ETF after a week of outflows. The return of institutional interest strengthens the chances of continued growth.
Bitcoin has stabilized, and liquidity has started to slowly flow into altcoins. The first movements are noticeable in $SOL , $AVAX , and $LINK — an increase in volumes and interest from traders.
The market seems to be preparing for a new wave — many are waiting for an impulse to start a real altcoin race. For now, everything looks like a calm before the storm.
The Altseason Index has fallen to 37 — a sign that the market is currently on the side of Bitcoin, and interest in altcoins has temporarily cooled. After a confident rise in BTC, liquidity is being redistributed, and part of the capital is returning to the main cryptocurrency.
However, such phases often serve as a prologue to a new altseason. While the crowd watches Bitcoin, smart money quietly accumulates strong altcoins. The next impulse will begin when the market believes in their potential again.
The open interest in options at $BTC has reached a record $63 billion — traders are massively betting on growth. Most contracts are focused on higher levels, indicating strong bullish expectations.
The market is charged with positivity: news, events, and sentiment clearly play in favor of the bulls.
It seems that capital is starting to flow from $BTC into altcoins. The market is becoming greedy again - risky assets are coming back to life. If the pace continues, altseason 2025 may start before anyone can blink.
"Everyone is waiting for the signal again. But the market has already started."
While the crowd is waiting for the "perfect entry point," the whales are just buying. While the newcomers argue whether it's a "dump" or a "rise," liquidity is going up.
In crypto, it is not the one who waits that wins - but the one who acts.
Today, the Federal Reserve is holding a conference on crypto payments and digital assets. This is yet another confirmation that crypto is becoming part of the global financial system.
The market is already reacting with increased interest from major players, and assets are beginning to show bullish signals.
Big players are returning - volumes on DEX are rising, and the asset looks ready for a new impulse.
$SOL has been holding strong levels for several weeks, and upon breaking the current resistance, the market could see a continuation of the bullish movement.
The market is once again a day without purchases — not a single large fund entered the spot ETFs, only sales. The main wave of unloading fell on BlackRock, increasing pressure on the price.
💸 Net outflow of funds: • BTC-ETF: –$366.6 million • ETH-ETF: –$232.3 million
But not everyone is exiting — BitMine bought back 72 898 $ETH ($281 million) yesterday. While large players are offloading, "smart money" is carefully buying the bottom.