Key Takeaways

Aurora Labs rolls out Bitcoin Light Client, a smart contract-driven solution for Bitcoin verification on NEAR.
The integration allows for the creation of new DeFi applications leveraging both Bitcoin and NEAR networks.

Aurora Labs, the team dedicated to the development of the Aurora ecosystem, has unveiled Bitcoin Light Client and Relayer, its new products created to bridge the Bitcoin network with the NEAR protocol, the team shared in a Tuesday press release.

The integration aims to open up new possibilities for decentralized finance (DeFi) applications and broaden Web3 interoperability, Aurora Labs stated.

Developed by Aurora Labs, the Bitcoin Light Client functions as a smart contract on the NEAR network. It enables NEAR dApps to verify Bitcoin transactions and maintain access to the most current Bitcoin chain state, essentially laying the groundwork for a forthcoming Bitcoin bridge that will facilitate the use of Bitcoin assets on NEAR.

“There’s a lot of untapped value in the Bitcoin ecosystem. NEAR Chain Signatures are a solid step forward, but to really unlock Bitcoin’s potential, we need the ability to read and act on its state,” said Alex Shevchenko, Aurora Labs CEO.

“That’s why we created a trustless Bitcoin Light Client that works as a smart contract. With this and Chain Signatures together, we’re opening the door for Bitcoin to finally enter the DeFi world,” Shevchenko added.

While the Bitcoin Light Client enables transaction verification, the Relayer keeps the light client synchronized with the Bitcoin network. It will act as a conduit that continuously updates the NEAR smart contract with the latest Bitcoin transactions, according to the team.

In addition to the two products, Aurora Labs has released a chain signature service from Proximity Labs, which supports the creation of native Bitcoin bridges, enabling BTC transfers to and from the NEAR network.

“The BTC light client is a critical part of the Bitcoin stack that NEAR now enables,” said Kendall Cole, founder of Proximity Labs. “When combined with chain signatures, developers will be able to create an entirely new set of applications for Bitcoin users, including money markets, DEXs, launchpads, stablecoins, and more, all with seamless user experiences.”

Aurora Labs also revealed plans to deploy the Satoshi Bridge, the next step in connecting the Bitcoin and NEAR ecosystems. The bridge will allow users to directly transfer Bitcoin (BTC) onto the NEAR blockchain.

Sapphire

Plus, it will support Rune and Ordinals, creating even more possibilities for developers to build innovative DeFi applications, the team hinted.

Markets

Share this article

X (Twitter)LinkedInFacebookEmail

New research projects U.S. inflation resurgence, challenging bitcoin bulls’ disinflation bets

Inflation in the United States could climb above 4% this year, according to a new analysis by Adam Posen of the Peterson Institute and Peter R. Orszag of Lazard.

By Omkar Godbole|Edited by Shaurya Malwa

Updated Jan 22, 2026, 6:58 a.m. Published Jan 22, 2026, 6:51 a.m.

Make us preferred on Google

Inflation — U.S. inflation rate could rise above 4% this year, according to Peterson Institute for International Economics

What to know:

Inflation in the United States could climb above 4% this year, according to a new analysis by Adam Posen of the Peterson Institute and Peter R. Orszag of Lazard.
The researchers say Trump-era tariffs, tighter labor markets, possible migrant deportations, large fiscal deficits and easier financial conditions could outweigh productivity gains from AI and falling housing inflation, pushing prices higher.
Higher inflation could keep the Fed from lowering borrowing costs as aggressively as markets and crypto investors expect.

A leading economics institute has warned that the costs of everyday stuff in the U.S. could rise faster this year. This clashes with bitcoin BTC$88,661.94 bulls’ hopes for disinflation and lower borrowing costs, which could spark a crypto boom.

Consumer prices in the U.S., a key measure of cost of living, could surprise to the upside this year, potentially topping 4%, Peterson Institute for International Economics’ President Adam Posen and Peter R. Orszag, CEO and chairman of global financial advisory and asset management firm Lazard, said in their latest research note.

STORY CONTINUES BELOW

Don’t miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters

By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy.

A renewed inflationary upswing would make it harder for the Federal Reserve (Fed) to cut rates rapidly, disappointing risk asset bulls who have come to expect rapid rate cuts in the wake of last year’s disinflationary trend.

The official inflation rate, as measured by the consumer price index, declined to 2.7% in 2025, the lowest since 2020. Several investment banks expect the Fed to cut rates by 50-75 basis points this year, while crypto bulls expect a more aggressive move.

Analysts at crypto exchange Bitunix put it best: “The real policy risk at this juncture is not easing too early, but remaining overly cautious after structural disinflation [due to productivity gains from AI] has taken hold—ultimately forcing a more abrupt and disruptive adjustment later. This backdrop explains why markets have begun to price in a ‘policy catch-up’ scenario in advance.”

Explaining the projection

According to Orszag and Posen, several factors, including Trump’s tariffs on imports from other countries and a tighter labour market, could outweigh productivity gains, pushing inflation higher.

They explained that importers pass on tariff-driven cost increases to end consumers with a lag. Such delays smooth short-term inflation spikes but eventually amplify consumer prices amid sustained tariffs.

“By mid‑2026, the delayed pass‑through should be substantially complete. This could add 50 basis points to headline inflation by mid-year,” they noted.

Deportations could also drive more inflation by creating labor shortages in sectors reliant on migrants, pushing up wages and fueling demand-pull inflation.

Analysts also highlight government spending, which could drive the U.S. fiscal deficit above 7% of GDP, alongside easier financial conditions and unanchored inflation expectations as potential catalysts that could raise the cost of living this year.

“We believe these factors outweigh the downward‑pressure trends that consensus has been fixated on—namely, the ongoing decline in housing inflation and gains in productivity,” they noted.

Treasury yields are already rising

This projection for higher inflation lands as global bond yields, including U.S. Treasury yields, are rising, making risky investments like stocks and crypto less attractive.

The 10-year Treasury yield hit a five-month high of 4.31% early this week, tracking the rally in the Japanese government bond yields to record highs.

Bitcoin has dropped nearly 4% to $90,000 this week, according to CoinDesk data.

Bitcoin NewsInflation

More For You

KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market

By CoinDesk Research

Dec 22, 2025

Commissioned byKuCoin

KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.

What to know:

KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.

View Full Report

More For You

Here’s why bitcoin’s is failing its role as a ‘safe haven’ versus gold

By Francisco Rodrigues|Edited by Aoyon Ashraf

17 hours ago

Here’s why bitcoin’s is failing its role as a 'safe haven'

Bitcoin behaves more like an “ATM” during uncertain times, with investors quickly selling it to raise cash.

What to know:

During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin’s vulnerability in times of market stress.
Bitcoin behaves more like an “ATM” during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.

Read full story

Latest Crypto News

U.S. Capitol, the seat of Congress in Washington (Jesse Hamilton/CoinDesk)

The big U.S. crypto bill is on the move. Here is what it means for everyday users

1 hour ago

The fight over stablecoin yield isn’t really about stablecoins

17 hours ago

Here’s why bitcoin’s is failing its role as a ‘safe haven’ versus gold

17 hours ago

Brian Armstrong and Larry Fink (David Dee Delgado/Getty Images)

Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business

19 hours ago

Agora’s Nick van Eck bets on stablecoin boom in enterprise payments

20 hours ago

Ethereum treasury firm buys jet engines amid tokenization push after selling ETH

21 hours ago

Here’s what bitcoin bulls are saying as price remains stuck during global rally

22 hours ago

Ethereum Foundation makes post quantum security a top priority as new team forms

Jan 24, 2026

Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus

Jan 24, 2026

Senator Amy Klobuchar, D-Minn. (screen capture, Senate Agriculture Committee)

Senate Agriculture’s crypto market structure draft peppered with Democrat pitches

Jan 23, 2026

Strategy Executive Chairman Michael Saylor (Danny Nelson, modified by CoinDesk)

Here is why investors are snubbing Michael Saylor’s 10% dividend offer in Europe

Jan 24, 2026

U.S. Capitol Building (Jesse Hamilton/CoinDesk)

Days of our market structure bills: State of Crypto

Jan 24, 2026

Latest Crypto News

The big U.S. crypto bill is on the move. Here is what it means for everyday users

1 hour ago

The fight over stablecoin yield isn’t really about stablecoins

17 hours ago

Here’s why bitcoin’s is failing its role as a ‘safe haven’ versus gold

17 hours ago

Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business

19 hours ago

Agora’s Nick van Eck bets on stablecoin boom in enterprise payments

20 hours ago

Ethereum treasury firm buys jet engines amid tokenization push after selling ETH

21 hours ago

Here’s what bitcoin bulls are saying as price remains stuck during global rally

22 hours ago

Ethereum Foundation makes post quantum security a top priority as new team forms

Jan 24, 2026

Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus

Jan 24, 2026

Senate Agriculture’s crypto market structure draft peppered with Democrat pitches

Jan 23, 2026

Here is why investors are snubbing Michael Saylor’s 10% dividend offer in Europe

Jan 24, 2026

Days of our market structure bills: State of Crypto

Jan 24, 2026

!–>!–>!–>!–>!–>!–>!–>!–>!–>!–>!–>
Read More

Key Takeaways

Nomura-backed Laser Digital introduces tokenized bitcoin yield-bearing fund

The Laser Digital Bitcoin Diversified Yield Fund SP targets excess returns on top of BTC performance.

What to know:

Sui Group charts new course for crypto treasuries with stablecoins and DeFi

The big U.S. crypto bill is on the move. Here is what it means for everyday users

The fight over stablecoin yield isn’t really about stablecoins

Here’s why bitcoin’s is failing its role as a ‘safe haven’ versus gold

Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business

Agora’s Nick van Eck bets on stablecoin boom in enterprise payments

Here’s what bitcoin bulls are saying as price remains stuck during global rally

Ethereum Foundation makes post quantum security a top priority as new team forms

Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus

Senate Agriculture’s crypto market structure draft peppered with Democrat pitches

Here is why investors are snubbing Michael Saylor’s 10% dividend offer in Europe

Days of our market structure bills: State of Crypto

Sui Group charts new course for crypto treasuries with stablecoins and DeFi

The big U.S. crypto bill is on the move. Here is what it means for everyday users

The fight over stablecoin yield isn’t really about stablecoins

Here’s why bitcoin’s is failing its role as a ‘safe haven’ versus gold

Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business

Agora’s Nick van Eck bets on stablecoin boom in enterprise payments

Here’s what bitcoin bulls are saying as price remains stuck during global rally

Ethereum Foundation makes post quantum security a top priority as new team forms

Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus

Senate Agriculture’s crypto market structure draft peppered with Democrat pitches

Here is why investors are snubbing Michael Saylor’s 10% dividend offer in Europe

Days of our market structure bills: State of Crypto

New research projects U.S. inflation resurgence, challenging bitcoin bulls’ disinflation bets

Inflation in the United States could climb above 4% this year, according to a new analysis by Adam Posen of the Peterson Institute and Peter R. Orszag of Lazard.

What to know:

Explaining the projection

Treasury yields are already rising

The big U.S. crypto bill is on the move. Here is what it means for everyday users

The fight over stablecoin yield isn’t really about stablecoins

Here’s why bitcoin’s is failing its role as a ‘safe haven’ versus gold

Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business

Agora’s Nick van Eck bets on stablecoin boom in enterprise payments

Ethereum treasury firm buys jet engines amid tokenization push after selling ETH

Here’s what bitcoin bulls are saying as price remains stuck during global rally

Ethereum Foundation makes post quantum security a top priority as new team forms

Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus

Senate Agriculture’s crypto market structure draft peppered with Democrat pitches

Here is why investors are snubbing Michael Saylor’s 10% dividend offer in Europe

Days of our market structure bills: State of Crypto

The big U.S. crypto bill is on the move. Here is what it means for everyday users

The fight over stablecoin yield isn’t really about stablecoins

Here’s why bitcoin’s is failing its role as a ‘safe haven’ versus gold

Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business

Agora’s Nick van Eck bets on stablecoin boom in enterprise payments

Ethereum treasury firm buys jet engines amid tokenization push after selling ETH

Here’s what bitcoin bulls are saying as price remains stuck during global rally

Ethereum Foundation makes post quantum security a top priority as new team forms

Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus

Senate Agriculture’s crypto market structure draft peppered with Democrat pitches

Here is why investors are snubbing Michael Saylor’s 10% dividend offer in Europe

Days of our market structure bills: State of Crypto

Crypto market steadies as Japan’s bond market chaos eases

Crypto markets remain highly sensitive to bond yields, but a renewed spike in rates could quickly put bitcoin and other digital assets back under pressure.

What to know:

Sui Group charts new course for crypto treasuries with stablecoins and DeFi

The big U.S. crypto bill is on the move. Here is what it means for everyday users

The fight over stablecoin yield isn’t really about stablecoins

Here’s why bitcoin’s is failing its role as a ‘safe haven’ versus gold

Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business

Agora’s Nick van Eck bets on stablecoin boom in enterprise payments

Here’s what bitcoin bulls are saying as price remains stuck during global rally

Ethereum Foundation makes post quantum security a top priority as new team forms

Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus

Senate Agriculture’s crypto market structure draft peppered with Democrat pitches

Here is why investors are snubbing Michael Saylor’s 10% dividend offer in Europe

Days of our market structure bills: State of Crypto

Sui Group charts new course for crypto treasuries with stablecoins and DeFi

The big U.S. crypto bill is on the move. Here is what it means for everyday users

The fight over stablecoin yield isn’t really about stablecoins

Here’s why bitcoin’s is failing its role as a ‘safe haven’ versus gold

Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business

Agora’s Nick van Eck bets on stablecoin boom in enterprise payments

Here’s what bitcoin bulls are saying as price remains stuck during global rally

Ethereum Foundation makes post quantum security a top priority as new team forms