Old Glory Bank SPAC Merger Signals Institutional Crypto Infrastructure Shift

VADODARA, January 13, 2026 — U.S. crypto-friendly bank Old Glory Bank is pursuing a public listing through a merger with special purpose acquisition company Digital Asset Acquisition Corp, according to Bloomberg reporting. This daily crypto analysis examines the structural implications of traditional banking infrastructure entering public markets through crypto-focused vehicles during a period of contradictory market signals.

Market Context & Background

Market structure suggests this development mirrors the 2021-2022 period when traditional financial institutions began serious infrastructure development for digital assets. Similar to the 2021 correction that separated speculative projects from fundamental infrastructure, the current environment is testing institutional commitment. Historical cycles indicate that banking infrastructure development typically precedes major capital inflows, as seen with the 2017-2018 exchange infrastructure build-out that preceded the 2020-2021 bull market. The Federal Reserve's ongoing research into central bank digital currencies, detailed in their official CBDC research papers, creates regulatory context for private banking innovation in this space.

Related developments in the current market include Bitcoin's recent break above $93,000 amid contradictory signals and institutional predictions about ETF-driven supply absorption.

What Happened?

According to Bloomberg's primary reporting, Old Glory Bank will merge with SPAC Digital Asset Acquisition Corp to create OGB Financial, which will trade under ticker OGB. The bank transitioned from a regional Oklahoma institution to a crypto-focused bank in 2022, positioning itself during the post-FTX regulatory scrutiny period. This SPAC merger represents one of the first pure-play crypto banking entities seeking public market access through this mechanism, following the path of crypto mining and trading companies that went public via SPACs in 2020-2021.

The timing is notable given current market conditions. Bitcoin's price action shows it holding above $93,000 despite the Crypto Fear & Greed Index registering "Fear" at 26/100. This divergence between price action and sentiment metrics creates what technical analysts would identify as a potential Fair Value Gap (FVG) between current prices and underlying market psychology.

Technical Analysis & Price Action

On-chain data indicates Bitcoin is testing a critical Volume Profile Point of Control (POC) at $92,500, with immediate resistance at the $95,000 psychological level. The 50-day moving average at $89,800 provides dynamic support, while the 200-day moving average at $84,200 represents longer-term structural support. RSI readings at 58 suggest neutral momentum with room for expansion in either direction.

Market structure suggests two critical invalidation levels for current positioning. The Bullish Invalidation Level sits at $89,500, where a break below would invalidate the current uptrend structure and suggest deeper correction. The Bearish Invalidation Level is $96,500, where a sustained break above would confirm renewed bullish momentum and potentially trigger a Gamma Squeeze in options markets. These levels form what technical analysts identify as an Order Block between $89,500 and $96,500 that will determine near-term direction.

By The Numbers

Why It Matters

For institutional participants, this SPAC merger provides a regulated, publicly-traded vehicle for crypto banking exposure without direct digital asset ownership. This addresses the custody and regulatory compliance hurdles that have limited traditional finance participation. According to Ethereum.org documentation on account abstraction, banking infrastructure development is critical for scaling institutional adoption through improved transaction finality and settlement mechanisms.

For retail participants, the development signals increasing legitimacy of crypto banking services but also highlights the concentration risk as traditional finance absorbs crypto-native functions. The structural shift from decentralized protocols to regulated intermediaries represents what market analysts describe as the "financialization phase" of crypto adoption, similar to the 1970s commoditization of gold through ETF structures.

Community Sentiment

Market analysts on X/Twitter are divided on the implications. Bulls suggest this represents "the plumbing being built for the next wave of institutional capital," pointing to similar infrastructure developments preceding the 2020-2021 rally. Bears counter that SPAC mergers often represent "exit liquidity for early investors" rather than fundamental growth, noting the poor post-merger performance of many 2021 crypto SPACs. The consensus among quantitative analysts is that the success metric will be whether OGB Financial can maintain its crypto-focused mandate post-merger or gradually de-risk toward traditional banking.

Price Prediction / Future Outlook

Bullish Case: If OGB Financial successfully lists and attracts institutional capital, it could validate the crypto banking model and trigger similar moves from regional banks. This would increase fiat on-ramps and support Bitcoin breaking above $100,000 by Q2 2026. The bullish scenario requires Bitcoin holding above the $89,500 invalidation level and the Fear & Greed Index improving to at least "Neutral" (45+).

Bearish Case: If the SPAC merger faces regulatory hurdles or post-listing performance mirrors the 2021 crypto SPAC downturn, it could signal institutional hesitation. This would likely keep Bitcoin range-bound between $85,000 and $95,000 through Q1 2026. The bearish trigger would be a break below the $89,500 invalidation level with sustained high fear sentiment.