Crypto News & Insights for January 2026 - Bitcoin and Altcoins

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Bitwise CIO Sees Strong Upside for Ethereum and Solana

Matt Hougan, Chief Investment Officer at crypto asset manager Bitwise, said Ethereum and Solana could stage a sustained rally this year. He linked this outlook to expected regulatory progress in the United States.

Hougan pointed to the proposed Clarity Act. The bill aims to clarify digital asset regulation and is awaiting review in the US Senate. He believes its approval could become a major catalyst for altcoins.

Why Regulation Could Change the Market

According to Hougan, the Clarity Act could unlock massive financial markets. He said the potential size reaches hundreds of trillions of dollars. Clear rules would bring long-term stability.

Hougan added that the law would signal serious US commitment to blockchain-based finance. In that scenario, Ethereum and Solana could reach new all-time highs.

Ethereum Regains Investor Trust

Hougan noted Ethereum’s strong performance in 2025. Earlier, ETH fell to around 1,500 dollars during the first months of the previous year. That decline damaged sentiment.

The trend later reversed. Ethereum recovered above the 3,000 dollar level. This move helped restore investor confidence. Many cautious investors returned after the breakout.

Solana’s Ecosystem Continues to Grow

Hougan also highlighted Solana’s progress. He described it as one of the fastest-growing ecosystems. Developer activity remains high.

The number of applications continues to rise. User engagement is expanding. Network stability has improved compared to past cycles. These factors support long-term demand for SOL.

A Divided View on Altcoins

Not all analysts share this optimism. Earlier, MN Consultancy founder and analyst Michaël van de Poppe warned about the altcoin market.

He said most altcoins may fail to deliver positive performance. Some could disappear from the market by year-end. This contrast highlights the growing gap between strong platforms and weaker projects.

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Tom Lee Predicts Bitcoin and Ethereum Prices for 2026

Tom Lee, co-founder of Fundstrat Global Advisors, shared his crypto outlook for 2026. He focused on Bitcoin and Ethereum. Lee spoke on CNBC’s Power Lunch.

He highlighted rising interest from Wall Street in asset tokenization. Large financial firms are actively testing blockchain systems. BlackRock and Robinhood are already piloting tokenized securities and on-chain settlement tools.

Lee said many institutions want to move assets onto blockchains. Their goal is faster settlement and simpler processes. Legacy financial infrastructure is slow and costly.

Why Ethereum Could Benefit Most

Lee believes Ethereum will be a key beneficiary. Most tokenized financial assets are expected to run on Ethereum’s blockchain. This should create steady and long-term demand for ETH.

He expects Ethereum to trade between 7,000 and 9,000 dollars in early 2026. Over a longer period, he sees ETH reaching 20,000 dollars. He views this growth as structural, not speculative.

Bullish Outlook for Bitcoin

Lee also remains optimistic about Bitcoin. He described it as a strong store of value. In his view, Bitcoin’s fundamentals remain intact.

He forecasts Bitcoin could reach 200,000 dollars in 2026. Lee said Bitcoin’s underperformance versus gold is temporary. He does not see this as a structural weakness.

BitMine’s Ethereum Strategy

Lee is chairman of BitMine Immersion Technologies. The company is the largest corporate holder of Ethereum. It currently owns 4,066,062 ETH.

BitMine plans to acquire 5 percent of all circulating ETH. So far, it has reached 3.37 percent. The firm increased purchases during recent price declines.

Earlier this month, Lee said Ethereum likely reached a market bottom. After that, BitMine accelerated buying. The company became more active following the Ethereum Fusaka upgrade.

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Van de Poppe Warns Most Altcoins May Disappear by Year-End

MN Consultancy founder and analyst Michaël van de Poppe said most altcoins are unlikely to post positive performance. He believes many will exit the market before the end of the year.

He reminded investors that past cycles were different. In earlier years, nearly every altcoin generated returns. Valuation was difficult due to novelty. That uncertainty supported broad speculation.

Selective Capital Replaces Broad Speculation

Van de Poppe said this phase is over. Institutional funds are now more selective. Capital flows into a small group of projects only.

He argued that many altcoins suffer from weak marketing. Ownership is also too fragmented. These projects no longer solve real market problems. Hype alone is no longer enough to drive prices higher.

Dot-Com Parallel

The analyst compared the current situation to the dot-com crash. During 2000–2001, many internet companies collapsed. Most never recovered.

This happened even as the internet itself kept growing. Van de Poppe sees a similar pattern in crypto. The technology advances, but many projects fail.

Institutions Raise the Bar

Institutional capital benefits the crypto sector overall. It brings liquidity and legitimacy. At the same time, it raises entry barriers.

Smaller projects struggle to compete at scale. Regulatory compliance adds further pressure. Many teams lack the resources to adapt.

Altcoin Market Shrinks

Earlier, 10x Research CEO Markus Thielen highlighted the same trend. He said capital shifted from altcoins to Bitcoin. This shift created an estimated 800 billion dollar gap in altcoin market capitalization.

Together, these views suggest consolidation will continue. Fewer projects will survive. Capital will favor size, clarity, and real-world relevance.

Domino

Few market participants expected privacy-focused cryptocurrencies to surge in 2025, yet that is exactly what happened. This once again proved that forecasting in crypto is never precise. Still, identifying assets with strong potential for 2026 remains a useful exercise.

Any forecast should be treated as a probability, not a certainty. Over a single year, the crypto market can be reshaped by regulation, macroeconomics, technology, or unexpected shocks. By the end of 2025, Bitcoin was trading about 6% below its January level, dragging many altcoins lower.

At the same time, Bitcoin had reached a new all-time high above $126,000 earlier in the year. This highlights an important point: profitable opportunities do not depend on calendar dates. Gains can be made during short-term rallies, deep corrections, or even market declines.

Looking ahead to 2026, several digital assets stand out based on fundamentals, adoption trends, and institutional interest.

Bitcoin remains the core asset of the crypto market. Price action in 2026 is likely to be volatile rather than smooth, but large investors continue to view BTC as a long-term store of value. Analysts at Grayscale expect another attempt at new highs, supported by growing demand for alternative savings and clearer regulation.

Stablecoins such as USDT and USDC may not rise in price, but they play a strategic role in uncertain conditions. Slowing US inflation, potential interest rate cuts, and leadership changes at the Federal Reserve could strengthen confidence in dollar-linked digital assets. Major institutions increasingly see stablecoins as a bridge between traditional finance and blockchain-based liquidity.

Solana enters 2026 with renewed momentum. The network remains fast and cost-efficient, while long-term stability has improved significantly. Upcoming protocol upgrades, delayed effects from spot ETFs, and rising activity from institutional players could support renewed growth.

Virtual Protocols represents the AI agent segment, which may expand rapidly after the AI boom of 2025. Productivity gains from autonomous agents are still underestimated, and easier access to AI tools could transform how businesses are launched. If adoption accelerates, leading AI-focused tokens may benefit sharply.

Chainlink is closely tied to the tokenization of real-world assets. Estimates suggest that the RWA market could grow from tens of billions to hundreds of billions of dollars within a year. Regulatory clarity in the US may allow banks and asset managers to tokenize equities and credit instruments, increasing demand for reliable oracle infrastructure.

In summary, the assets that appear most compelling for 2026 include:

* Bitcoin as the foundational store of value
* USDT and USDC as stability anchors in uncertain markets
* Solana as a scalable smart contract platform
* Virtual Protocols as exposure to AI-driven networks
* Chainlink as infrastructure for real-world asset tokenization

None of these assets come with guarantees. However, based on current data and market logic, they align most closely with the dominant trendsd trends shaping the crypto sector in 2026 🚀

Domino

On the first trading day of the year, US-based Bitcoin and Ethereum ETFs recorded a combined net inflow of $645.8 million. This marked the strongest daily result in more than six weeks. Bitcoin-focused funds attracted $471.3 million, while Ethereum ETFs received $174.5 million.

According to Farside data, this was the largest single-day inflow for Bitcoin ETFs over the past 35 trading sessions. A comparable figure was last seen on November 11, when total inflows across 11 US funds reached $524 million. Ethereum ETFs also posted their strongest daily inflow in 15 trading days.

The previous peak for Ethereum-based funds occurred on December 9, when inflows totaled $177.7 million. These figures suggest renewed institutional interest at the start of the year. Market observers see this as a potential shift in sentiment rather than a short-term anomaly 📈

Wals, chief marketing officer of crypto analytics firm Tonso AI, noted on X that many corporate investors sold Bitcoin in Q4 2025 to realize tax losses. He believes these investors are now re-entering the market and rebuilding positions. According to him, the recent inflows may represent the early stage of a broader accumulation trend.

December, however, was challenging for crypto ETFs. Prices of underlying assets declined, with Bitcoin down 1.56% and Ethereum falling 1.39% over the past 30 days. This weakness followed the market pullback after Bitcoin reached a record high on October 5.

Market pressure intensified on October 10, when a sharp sell-off triggered liquidations totaling $19 billion. Investor caution remained elevated through the end of the year. During the final week of December alone, $782 million was withdrawn from spot Bitcoin ETFs, according to SoSoValue.

The largest single-day outflow occurred on Friday, December 26, when Bitcoin ETFs lost $276 million. Falling prices clearly influenced investor behavior. Risk appetite remained subdued despite occasional inflow spikes.

This caution is reflected in the Crypto Fear & Greed Index, which tracks overall market sentiment. Since early November, the index has consistently remained in the Fear or Extreme Fear zones. On Sunday, January 4, it dropped back to Extreme Fear with a reading of 25 out of 100.

Looking at the full picture of 2025, US investors allocated more than $31.77 billion into crypto ETFs. The majority of this capital flowed into Bitcoin-linked funds, which recorded net inflows of $21.4 billion.

Despite the strong annual result, total inflows were lower than in 2024. In the previous year, US crypto ETFs attracted $35.2 billion, highlighting a more cautious but still structurally growing institutional presence in the market.

Domino

Market overview

The market keeps moving higher, but the pace remains cautious. Retail traders are slowly adding liquidity. Trading volumes and open interest continue to rise. Bitcoin is still pressing against the upper range resistance. Many analysts expect a breakout, but the upside potential is unclear.

Geopolitical risks continue to pressure global markets. This uncertainty limits aggressive positioning. More experienced traders already price future scenarios through options. Volatility expectations are gradually increasing.

Altcoins situation

Altcoins are benefiting from a seasonal rally. Small and mid-cap tokens show renewed activity. Large-cap assets try to follow the trend, but momentum is uneven. Low volumes make the market fragile. This creates room for manipulation and sudden profit-taking.

Ethereum outlook

Ethereum remains relatively stable compared to the rest of the market. Large holders have become active again. On-chain data suggests accumulation at recent lows. A local bottom appears to be in place. ETH may still gain a few more percent before sellers return.

Additional context

Funding rates stay mostly neutral, which signals balanced leverage. This reduces the risk of an immediate sharp correction. However, weak liquidity means any strong news can move prices fast. Traders should expect sudden swings rather than smooth trends.

Domino

The main driver of Ethereum’s growth this year will be digital banks, not short-term traders. This view was shared by Mike Silagadze, co-founder and CEO of Ether.fi. He believes Ethereum is shifting toward real-world utility for businesses and financial institutions.

According to Silagadze, the next phase for Ethereum will focus less on speculation. Growth will come from financial products that regular users can understand and use. Crypto-native digital banks are expected to lead this transition.

He noted that the crypto neobank sector is expanding rapidly. Many companies are entering this space and already see strong demand. These platforms aim to combine blockchain infrastructure with familiar banking services.

Silagadze argues that crypto-focused digital banks can accelerate mass adoption. This is especially relevant as stablecoins become embedded in global payment systems. In his view, neobanks can attract more users than spot crypto ETFs.

Ethereum’s performance will depend on how fast its ecosystem adapts. The key is offering accessible banking tools rather than purely speculative applications. A successful shift could redefine Ethereum’s role in finance.

Earlier, Bitwise investment chief Matt Hougan also expressed optimism. He suggested Ethereum and Solana could deliver sustained gains this year.

Domino

Bitcoin could reach a new all-time high later this year. This opinion was shared by Bill Miller, Chief Investment Officer at Miller Value Partners, in an interview with CNBC. He pointed to growing acceptance of Bitcoin by Wall Street as the main reason.

Miller said institutional adoption is still gaining momentum. Banks and large corporations continue to build blockchain-based products. Support from the US government also adds confidence to the market.

He noted that technical indicators are starting to align. Price action suggests Bitcoin is preparing for another upward move. Miller expects the asset to break the record set last autumn.

According to him, the current setup is stronger than earlier cycles. Bitcoin has formed a higher support base compared to spring 2025. This changes the overall market structure.

Last year’s decline was not a major concern, Miller explained. Historically, Bitcoin has never posted losses for two consecutive years. That pattern remains intact.

The period of uncertainty followed a two-month drop in demand. That phase now appears to be over. Large investors are returning and increasing exposure.

Miller added that institutional buyers are absorbing supply faster than miners can produce it. This imbalance is another bullish signal. Earlier, VanEck research head Matthew Sigel also said downside risks for Bitcoin remain limited in the current cycle.

Domino

China’s financial regulators have issued a joint warning about the risks of illegal activity linked to virtual currencies. The statement was signed by seven major industry associations that oversee the country’s financial system.

Among them are associations representing internet finance, banking, securities, asset management, futures markets, listed companies, and payment and clearing services. Together, they act as key regulatory bodies within China’s financial sector.

The document provides a clear definition of real-world assets, or RWA. According to the regulators, RWA refers to financing or trading activities that involve issuing tokens or similar rights and debt instruments backed by real assets.

The regulators stressed that such activity has not received official approval in China. As a result, all existing RWA projects lack legal status. In practice, this means RWA initiatives are effectively banned in the country.

Authorities described RWA as a high-risk business model. They warned that it should be strictly suppressed due to multiple threats. These include fraud, operational failures, and excessive speculative behavior.

The statement also highlighted legal consequences. Public token issuance tied to RWA may be treated as illegal fundraising. Trading without proper authorization could be classified as an unapproved securities offering.

In addition, the use of leverage or betting mechanisms in RWA trading may be considered illegal futures activity. Regulators made it clear that enforcement will remain strict.

Domino

The potential entry of US energy companies into Venezuela’s oil sector could lower electricity costs for Bitcoin miners. Analysts at Bitfinex believe cheaper power would improve mining profitability worldwide.

They argue that Venezuelan oil production could trigger a new phase of mining expansion. This is especially relevant for regions able to secure long-term electricity supply contracts. Even partial use of Venezuela’s oil reserves could affect global energy prices.

Lower energy costs would be a major relief for miners. Rising electricity prices have already reduced margins across the industry. Any structural decline in power costs would strengthen mining economics.

Oil prices have recently eased following the removal of Venezuelan President Nicolás Maduro. This development may further reduce energy expenses for miners, since electricity prices often track oil markets.

Bitfinex analysts caution that large-scale oil expansion will take time. Meaningful production growth could take years. The pace will depend on US policy decisions and how sanctions are managed.

According to estimates, full-scale development of Venezuela’s oil sector may require up to ten years. Restoring the country’s status as a major oil producer would need more than $100 billion in infrastructure investment.

At the same time, Bitfinex notes a broader reality. Crypto prices are unlikely to be driven by energy fundamentals alone. Macro risk appetite, volatility, and asset positioning remain the dominant forces.

In the 1970s, Venezuela produced around 3.5 million barrels per day. That was roughly 7% of global output. Today, production has fallen to about 1 million barrels daily.

Chevron is currently the only major US oil company operating in Venezuela. US President Donald Trump has pushed for other American firms to enter the market.

Separately, Lookonchain reported unusual activity on Polymarket. Three crypto wallets earned $630,484 by betting on Maduro’s removal from power. The bets were placed just hours before his detention by US special forces.

Domino

XRP has kicked off the year with explosive momentum 🚀

Since January 1, XRP is up about 25% and now trades near $2.24. For comparison, Bitcoin gained around 6% to $91,755, while Ethereum added roughly 10% to $3,208. This performance has already made XRP one of the standout assets of the year.

The main driver is strong inflows into XRP-focused funds 💰
Since early January, these products attracted close to $100 million. Total assets under management now exceed $1.15 billion. Not a single day of net outflows has been recorded.

During the previous quarter, when markets were weak, investors actively bought XRP on dips. Many viewed it as a less crowded bet compared to Bitcoin or Ethereum.

Sentiment on social platforms has also turned clearly positive 😊
Both retail traders and so-called smart money show growing confidence. XRP balances on major exchanges dropped to a two-year low. This suggests holders prefer self-custody over selling.

On-chain activity is accelerating 🔥
Transaction volumes jumped by roughly 50% over the past two weeks. Network usage is picking up alongside price action.

Ripple is also expanding its presence in Japan. The company announced new partnerships with major banks. These deals aim to increase the use of Ripple’s payment technology across the region.

Domino

Rumors are swirling that Venezuela may be hiding as many as 600,000 bitcoins 🌍
After the detention of Nicolás Maduro, speculation around secret state reserves flared up again. Some journalists claim the country quietly converted gold and oil revenue into Bitcoin over several years. At today’s prices, that stash would be worth close to $60 billion.

The estimate did not appear out of nowhere 💰
Analysts looked at Venezuela’s gold sales since 2018. In just one year, about 73 tons of gold reportedly left the country. That equals billions of dollars. If those funds were used to buy Bitcoin at lower prices and held long-term, the gains would be massive.

According to the theory, the assets were hidden carefully 🕵️‍♂️
The alleged strategy involved intermediaries, mixers, and cold wallets. The goal was to bypass sanctions and avoid detection. On paper, it sounds plausible.

The problem is the blockchain shows nothing
Major blockchain analytics firms searched for evidence. They found no wallets or flows supporting this claim. Officially, Venezuela is linked to only around 240 BTC, and even that figure is disputed. Without hard proof, experts say this remains speculation.

Still, Venezuela has deep ties to crypto 🌴
The country was an early adopter. It launched its own token and pushed state companies to use digital payments, especially in oil trade. In 2025, Venezuela ranked among the top ten countries for crypto usage.

For many citizens, crypto is not an investment
Bitcoin and stablecoins are tools for survival. In an economy crushed by inflation, digital assets became a way to preserve value and move money across borders.

Domino

Bitcoin is struggling to break above the 95,000 level 🌟
Today, BTC attempted another push higher but faced strong resistance near 95,000 dollars. Yesterday, the price reached 94,800 before pulling back toward 91,000. Large sell orders remain stacked on exchanges at these levels, blocking any clean breakout.

Market action feels tense 🚧
This zone attracts constant selling pressure. Long positions get closed. Short positions open quickly. As a result, price keeps moving sideways in a tight range, creating choppy and emotional trading days.

Traditional markets look more confident 📉
US equities continue to rise, and gold has printed new highs. Bitcoin follows the broader risk mood but underperforms compared to gold. Capital still prefers established safe havens during uncertainty.

The weekly close is critical 🕯️
Analysts highlight 93,500 as the key level. This was the opening price of 2025. A weekly close above it could confirm a range breakout and signal the end of the downtrend that started in October.

Domino

Easy money in crypto is gone. The October crash changed the market for good.

Last October’s collapse hit hard. It was especially painful for traders using arbitrage and low-risk strategies. A major exchange released a report stating this clearly. The era of earning steady returns from funding rates and spreads is likely over.

In just a few days, the market lost around 20 billion dollars. Professional market makers suffered the most. Their neutral, hedged positions collapsed due to cascading liquidations. They were left holding assets in a falling market.

As a result, liquidity was pulled from many venues. Order books became thinner than they were in 2022. This made price moves sharper and less predictable.

Once-reliable strategies are now overcrowded. Funding rates dropped to about four percent. That level no longer beats even basic bond yields.

The market has also split in behavior. Some exchanges still match orders transparently. Others trade against users and even cancel profitable outcomes. Trust is no longer uniform across platforms.

Domino

Bitcoin is losing its January momentum. Bears are back in control.

The year started with optimism. Price almost reached 95,000 dollars. Many expected a clean breakout. Resistance proved stronger than expected. Bitcoin has now pulled back to around 90,784. Some traders call it a false move. Buyers look exhausted.

One analyst keeps a bearish target at 76,000. He sees the current range as a pause. In his view, it is a reset before another leg down. Higher timeframes remain bearish. Every bounce looks like a selling opportunity.

Other market watchers also stay cautious. Monthly moves usually show deeper drops than we see now. If January’s low is not broken soon, reversal risks may grow later. Some argue a sharp drop now would be healthier. It could shake out weak hands and form a real bottom.

For now, price stays stuck in a range. Sentiment is careful, not fearful. Fundamentals remain solid, but confidence is limited. January is still unfolding, and conditions can shift fast.

Domino

The key level right now is 100,000 dollars.

Three major lines meet in this zone. They reflect the behavior of large holders. The realized price of recent buyers sits near 99,000. The one-year moving average is slightly above 100,000. The 200-day average stands near 106,000. As long as price stays below all three, the trend remains bearish. Short-term rallies do not change that.

A similar setup appeared in late 2021. Bitcoin rallied into the same area. It failed to hold those levels as support. A long and deep downturn followed soon after.

Everything now depends on this zone. A clean break and strong hold above it could restart growth. Failure would keep pressure on the market. In that case, rallies stay temporary. January has just begun, but this level already dominates sentiment. The message is simple. Until 100,000 is reclaimed, caution is necessary.

Domino

Ethereum co-founder Vitalik Buterin publicly supported Tornado Cash developer Roman Storm. Storm was convicted in August 2025 for running an unlicensed money transmission service. Buterin said building privacy tools is not a crime.

He argued that privacy software exists to protect people from surveillance and data abuse. Such tools appeared as a response to uncontrolled data collection. According to Buterin, privacy is a basic human right.

Buterin said he personally used Tornado Cash for legal purposes. These included buying technical equipment and donating to human rights groups. He noted that mixers do not create permanent records like corporate or government databases.

He stressed that developers should not be criminally liable for how others use open tools. In his view, blaming creators instead of criminals sets a dangerous precedent. Buterin fears courts may redefine software development as a criminal act.

He also backed the defense claim that publishing open-source code is protected speech. The First Amendment limits government restrictions on speech and publication. Buterin believes this protection should apply to software code.

Buterin confirmed he donated to Storm’s legal defense fund. The Ethereum Foundation also made large contributions. By 2025, the fund raised over 6.3 million dollars.

He added that modern society faces constant privacy risks. Personal data can be used for social, financial, or even physical harm. People should control who accesses information about their lives, finances, and location.

Tornado Cash was sanctioned by the US Treasury in 2022. Authorities said it was used by North Korean hackers from the Lazarus Group. The service helped launder stolen crypto assets worth billions.

OFAC banned Americans from using Tornado Cash. These sanctions were lifted in March 2025. Despite this, Storm was charged in 2023 with money laundering conspiracy, sanctions violations, and illegal money transmission.

In August 2025, a New York jury found Storm guilty on some charges. He now faces a possible prison sentence of up to five years.

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Cathie Wood on Possible US Bitcoin Purchases

Cathie Wood, the CEO of ARK Invest, said the US government could buy Bitcoin directly. This may happen ahead of the midterm elections in November.

She believes institutional adoption in 2025 is still not fully realized. This is true despite a better regulatory environment. Government action could become the key driver.

Impact on Bitcoin Supply

Wood explained that the US already holds seized Bitcoin. These coins come from law enforcement actions. She said direct market purchases would be very different.

If the government starts buying Bitcoin openly, scarcity would increase fast. This could have a strong effect on price dynamics. It would also send a clear signal to institutions.

Political Motivation

Wood sees political logic behind this idea. Donald Trump may want to strengthen his public image. He also seeks support from the crypto community.

A national Bitcoin reserve was part of his campaign narrative. Returning to this topic before elections looks realistic. Crypto-friendly signals often gain attention during political cycles.

Broader Context

Several countries are exploring digital asset reserves. Some already hold Bitcoin indirectly. Direct state purchases would mark a new stage of adoption.

Such a move could legitimize Bitcoin further. It may also accelerate interest from funds and corporations.

Domino

Bitcoin is gaining strength for a push toward $107,000. Three key factors are driving this momentum.

The asset has broken out from a multi-week ascending triangle. It surpassed the upper boundary near $95,000, retested it as new support, and resumed its climb. This confirms a genuine bullish breakout. The pattern's measured target points to $107,000 by February if support holds.

A significant bullish crossover is forming on the daily chart. The 20-day EMA is poised to cross above the 50-day EMA. The last similar signal preceded a 17% price gain within one month.

Selling pressure from long-term holders has dramatically eased. The 90-day average spend of old UTXOs has dropped from 2,300 BTC to just 1,000 BTC. This indicates older investors are holding, not selling. Major exchange outflows since December 2024 are further tightening available supply.

Macro conditions are also supportive. Bitcoin's correlation with gold has turned negative. Historically, such periods have led to average gains of 56% over two months. Global liquidity is now expanding, with the Fed's quantitative tightening concluded and the M2 money supply growing. This creates a favorable backdrop for asset appreciation.

Domino

Ethereum touched $3,400 but quickly pulled back. Professional traders remain cautious, not bullish.

The price fell 4% over two days from that peak. This move liquidated $65 million in long positions. ETH is now trading near $3,290. Derivatives data signals deep caution. Annualized premiums for one-month futures have slumped to just 4% above the spot price. Premiums below 5% indicate seller dominance and a lack of buyer conviction.

The broader crypto market has struggled. It has lost 28% of its total capitalization since October 2025. This decline contrasts with record highs in traditional assets. A key headwind for Ethereum is declining activity in decentralized applications. The memecoin hype has faded, failing to attract new users. Network demand is softening as a result.

Ethereum network fees have plummeted 31% over the past 30 days. This is notable because transaction count actually rose 28% in the same period. Competitors like Solana and BNB Chain saw fee growth of 20% with stable activity. Even Base, a leading Layer 2, experienced a 26% drop in transactions. Lower activity means less ETH is burned through fees. It also pressures staking yields, with 30% of the total supply now locked.

Institutional interest is not providing a lift. U.S. spot Ethereum ETFs have seen a net inflow of only $123 million since their launch on January 7th. This tepid demand fails to offset the broader weakness.

Domino

Bitcoin failed to break through $98,000 and has pulled back. The market is showing signs of exhaustion after the recent rally.

The attempt to reach $100,000 hit a solid wall. After a local high near $98,000, the price declined for two consecutive days. It fell below $95,000 by Friday. The Coinbase premium briefly turned positive at the peak, but it was short-lived.

Order flow data showed aggressive buyers during the move. However, the bid-ask imbalance remained negative throughout the rise. This indicates sellers were dominant. Buyers were merely lifting offers without strong underlying support. Following a brief short squeeze, open interest collapsed. Leverage was flushed out, and new long positions are not rushing to enter.

Analytics from Material Indicators point to a strong bearish defense. Key trend signals on the daily chart have flipped downward. A loss of crucial support levels could open the door for a test of lower price zones.

The main driver of this pullback is profit-taking by short-term holders. When the price surpassed $97,000, these holders sold over 40,000 BTC in a single day. Their aggregate cost basis sits around $98,300, which acted as a ceiling. The discount for short-term holder supply has narrowed to -4%. Yet, holders are choosing to secure profits now rather than waiting for further confirmation of the uptrend.

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The MetaMask wallet team has integrated the Tron blockchain. Users can now swap TRC-20 standard tokens, including USDT.

Developers stated this move is a key step in expanding the platform's infrastructure. It follows recent integrations for Bitcoin, Ethereum, Solana, and Base. To access new features like TRX staking and transactions, users must update their MetaMask mobile app or browser extension. A Tron address will be automatically added to the user's account.

A Tron protocol representative, Sam Elfarra, commented on the integration. He noted it significantly broadens access to a blockchain processing over $21 billion in daily stablecoin transfers.

The new staking feature allows users to earn TRX rewards. These rewards can be used to pay for transaction fees or participate in governance votes. Currently, staking is only available within the MetaMask mobile application.

This update follows MetaMask's recent addition of Bitcoin support. The team has also promised clients more blockchain integrations in the coming year.

Domino

Bitcoin risks repeating a 2022 bear market pattern and could face a significant drop. This will happen if it fails to solidify its position above the critical $101,000 level, according to experts at CryptoQuant.

Although Bitcoin has risen 21% since November 2025, climbing from $80,500 to $97,900, analysts describe this as a "bear market rally." They do not view it as the start of a sustained recovery.

A similar scenario unfolded during the previous bear market in 2022. After crossing above its 365-day moving average, Bitcoin's price fell 27%. It then rallied 47% only to be rejected from that same moving average level.

Fundamental and technical indicators currently point to the bear market's continuation. A concerning on-chain signal is the rising inflow of Bitcoin to exchanges. The seven-day inflow volume has reached 39,000 BTC, its highest level since November 25, 2025.

An increase in cryptocurrency moving to trading platforms is traditionally seen as a precursor to selling pressure. Retail investors typically transfer assets to exchanges with the intent to sell. This can negatively impact Bitcoin's price in the short term.

Earlier, analysts from the on-chain platform Glassnode made a related observation. They stated that pressure from Bitcoin bulls is weakening. The bulls' fate now hinges on two key factors: renewed capital inflow into spot ETFs and a substantial increase in demand on the spot market.

Domino

The CEO of Bank of America, Brian Moynihan, has issued a stark warning. He stated that legalizing interest payments on stablecoins could trigger a massive shift of funds out of the traditional banking system.

Moynihan estimates up to $6 trillion in deposits could leave banks. This sum represents approximately one-third of all assets deposited in U.S. banks. He compares stablecoins to money market funds, as both hold reserves in high-yield, liquid assets outside the banking system.

The core of his concern is the impact on lending. A significant reduction in deposits would severely limit banks' ability to provide loans. This could negatively affect the broader U.S. economy. Banks would then need to seek alternative, more expensive funding sources to continue lending.

Moynihan argues stablecoins could effectively become high-yield deposit alternatives. However, their issuers face less stringent requirements than traditional banks. This regulatory disparity, he concludes, threatens the stability of the entire banking system.

His comments follow similar concerns from industry groups. The Independent Community Bankers of America previously called for a ban on exchanges offering interest for holding stablecoins. They warn that without such a ban, small regional banks could face a crippling competitive disadvantage and potential crisis.

Domino

Could this be Bitcoin's most reliable bullish signal? Analysts are watching for a potential trend reversal.

A bullish cross has appeared on the Bitcoin Stochastic RSI chart. This signal is based on comparing the yield of US and Chinese 10-year bonds. It is an extremely rare event, having only occurred four times in Bitcoin's history.

Each previous instance was followed by a massive price surge. For example, after the 2020 signal, Bitcoin rallied 600% to its $69,000 peak. Similar explosive growth followed the signals in 2012, 2015, and 2019.

However, there are significant caveats to consider this time.

Current market data reveals underlying weakness. The CVD indicator, which tracks the balance of buy and sell orders, has plummeted to negative $194 million. This clearly shows sellers are in control.

Furthermore, weekly BTC ETF flows have reversed sharply. A previous $1.6 billion inflow has turned into a $1.7 billion outflow. This suggests large investors are taking a defensive stance.

Other factors still support a potential upward move.

The US Dollar Index is approaching the 96 level. In both 2017 and 2022, this coincided with significant Bitcoin rallies.

Gold has also broken to a new all-time high above $5,000. Bitcoin has historically followed gold's momentum, often with a slight delay.

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Bitcoin's hash rate has collapsed to levels not seen since mid-2025. The cause was a massive winter storm across the United States.

The storm impacted 36 states and left over a million people without power. The network's hash rate plunged by 40% to 663 EH/s. This is a seven-month low. It began recovering to 854 EH/s by Monday.

The United States accounts for nearly 38% of the global hash rate. It is the world's leading center for Bitcoin mining. Many mining operations voluntarily scaled back their power usage. This was done to relieve stress on the electrical grid and support critical public infrastructure.

This highlights a built-in feature of modern mining. Operations can power down rapidly during peak demand. They can return online just as quickly when the grid stabilizes.

Major public miners felt the immediate impact. Marathon Digital saw its daily Bitcoin production drop from 45 to 7. Iris Energy's output fell from 18 to 6. This is not a network failure. Instead, miners are actively helping to stabilize power grids, especially in regions like Texas that rely on renewable sources.

These events demonstrate the resilience of the Bitcoin network. While the hash rate can drop temporarily, network security remains intact. Once the storm passes, the idled mining capacity will return online. The network's mining difficulty will then adjust upward. This will subsequently lead to increased revenue for the miners who come back online.

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The stablecoin market is seeing a significant outflow of capital. Over the past ten days, the combined market capitalization of the top twelve stablecoins has dropped by $2.24 billion.

This decline coincides directly with an 8% drop in Bitcoin's price. This is not a coincidence. Money is leaving the crypto space entirely, rather than simply rotating into stable assets like Tether or USDC.

Investors are shifting towards traditional safe havens instead. Both gold and silver have reached new record highs during this crypto downturn. In the current climate of geopolitical tension and trade wars, safety is being prioritized over speculative risk.

This pattern breaks from historical behavior. Typically during price declines, capital remains parked in stablecoins, waiting to buy the dip. The falling total capitalization now indicates a full exit into traditional fiat currency. This suggests a lack of faith in a near-term market rebound.

Stablecoins are the primary source of liquidity for crypto trading. Their shrinking supply means there is less available capital to fuel any potential rally. This leads to weaker and slower price recoveries, as overall market buying power contracts.

A true market recovery typically begins with growth in stablecoin capitalization. This signals the return of fresh capital and renewed investor confidence. For now, that crucial inflow is absent.

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Bitcoin is reasserting its dominance in the cryptocurrency market. This shift is being captured by market cycle indicators like Altcoin Vector. The dominance metric for Bitcoin is rising again.

A specific scenario suggests a healthy market rotation could follow. If Bitcoin's price rises while its dominance holds steady, it would signal an orderly flow of capital. Money would likely move first into Bitcoin, then into Ethereum, and finally into other altcoins.

There is a simpler, bearish alternative. Bitcoin's dominance could remain high while its price falls. This scenario would likely trigger high volatility. Altcoins would suffer disproportionately, potentially throwing the market into chaos.

We are currently in the early phase of rising Bitcoin dominance. This is a classic "risk-off" move by investors. It is driven by current geopolitical tensions and macroeconomic uncertainty. Bitcoin is acting as a digital anchor, much like gold which is also hitting records.

The path forward depends on Bitcoin's price action. A clean breakout above key resistance, supported by strong volume, would be a positive signal. It would likely green-light the rotation into Ethereum and major altcoins.

However, a breakdown in Bitcoin's dominance would be a warning sign. If altcoins start outperforming Bitcoin decisively, it could signal market overheating. It might also indicate a potential local price top for the cycle.

For now, the strategy is clear. With Bitcoin dominance above 55% and climbing, BTC remains the leader to watch. Altcoins are waiting for their turn, but it is too early to enter them aggressively. All eyes are on Bitcoin's price for the next major directional cue.

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Analysts are pushing back against talks of an early end to Bitcoin's bull market. Key on-chain data is telling a different story.

The stablecoin-to-crypto exchange ratio has hit a significant low. This metric measures the balance of dollar-pegged assets against volatile crypto assets on exchanges. When this line falls, it means crypto prices have dropped while stablecoin liquidity has remained parked and waiting.

This indicator is now at its lowest point in the current four-year halving cycle. Historically, such extremes have signaled that Bitcoin is deeply undervalued relative to available dollar liquidity. Each previous instance like this was followed by a continuation of the bull run.

A second chart, tracking the raw number of tokens, paints an even starker picture. The ratio here is stuck at historical lows. This reveals an enormous pool of stablecoins sitting on the sidelines, ready to flow back into the market at the first sign of upward momentum.

The on-chain message is clear. The market structure remains bullish, backed by powerful latent liquidity. While public sentiment may be fearful of a cycle top, stablecoin metrics show fuel is accumulating for the next rally. The market is now waiting for a catalyst to trigger this capital into action and reverse the price trend.

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Bitcoin sentiment has hit a yearly low. Fear and bearish comments on social media are at their peak for 2026. The price has dropped to levels not seen since late November. This has created widespread uncertainty among traders online.

Market history offers a crucial lesson. Extreme public fear often marks the final stage of a sell-off. It typically signals that retail investors are panic-selling. Meanwhile, large-scale investors, known as whales, often accumulate assets quietly during these periods. A powerful market rebound frequently follows such capitulation.

The current volatility is not isolated. Traditional assets like stocks, gold, and silver have already corrected. Their price movements are now pulling the crypto market along. Broader macroeconomic instability is adding fuel to the fire. Any significant news can trigger sharp moves in either direction.

Extreme fear is a powerful contrarian indicator. While the crowd is panicking, blockchain data shows whales are buying. If key price support levels hold, a reversal is likely. We could soon see capital rotate back into risk assets like crypto. Patience during these times has historically been rewarded.

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The markets have stopped falling. The global sell-off appears to be on pause. Precious metals have ended their spectacular rally and are now correcting.

Major tech companies, like Microsoft, worsened the sentiment. They lost more value in a day than Bitcoin. This added fuel to the fire.

In crypto, nearly $2 billion in leveraged positions were liquidated. This triggered panic and forced selling. History shows that such sharp declines are often followed by a bounce. Even a short-lived recovery is common. Bears have taken significant liquidity, and some of it usually flows back.

Altcoins are deep in the red and panicking. They are hit hardest during broad market downturns. Fear is not a catalyst for growth.

Ethereum has broken below its consolidation range. One can hope it reclaims this level during a correction. However, the bigger picture must be considered. Any recovery might be brief and followed by another pullback.

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Bitcoin fell sharply by 7.4% over the past day. It dropped below $82,150, hitting its lowest price in nine months. Other major cryptocurrencies also moved into negative territory. The total crypto market capitalization declined by 6.7%.

Bitcoin's own market cap decreased by 6.7% to $1.63 trillion. However, its daily trading volume surged by 78.6%, reaching $78.45 billion. Ethereum's price dropped 8% to $2,712. Solana and XRP also fell roughly 8% to $113.6 and $1.73 respectively.

This correction was influenced by U.S. political developments. President Donald Trump signed an emergency order concerning Cuba. The order authorizes tariffs on countries trading oil with Cuba. Trump also indicated he will soon announce the new Federal Reserve Chair. Former Fed Governor Kevin Warsh is reportedly a candidate who impressed the President.

Investment analyst Lai Yuen suggests that if Warsh is appointed, the crypto bear trend may persist. Warsh is seen as supportive of a more accommodative Fed policy. Additional global tensions are reducing risk appetite. These include the South China Sea disputes, protests in Iran, and the ongoing Russia-Ukraine conflict.

Analyst Emir Ibrahim states these events are pushing capital away from risky assets like crypto. Investors are seeking safer havens instead. Sean Dawson from Derive expects a painful start to February. He believes Bitcoin could fall to the $70,000–$75,000 range.

Dawson also notes that the new CLARITY Act, which clarifies regulatory roles, is unlikely to boost crypto prices in the short term. In contrast, Animoca Brands founder Yat Siu recently argued that Trump's influence on crypto's future has diminished.

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Published yesterday at 20:00

Analysts from Wintermute believe stablecoins could become the primary payment method for the digital economy in coming years. One major obstacle stands in the way. That obstacle is a highly fragmented market for these stable digital assets.

Experts point to a clear market need. The need is for a unified platform. This platform would consolidate settlements across different stablecoins. Their use in cross-border payments is growing rapidly. This growth increases demand for standardized liquidity management.

Currently, users and companies must manage this complexity alone. They are forced to assume currency and settlement risks themselves. This limits the scalability of solutions. It also deters participation from major financial institutions. This situation creates a significant barrier to the market's growth.

Regulatory challenges add further pressure. Authorities worldwide are shifting their view. They increasingly treat stablecoins as payment infrastructure, not just crypto products. This evolving landscape makes consolidated settlement crucial. It is now a necessary condition for market growth. True integration with the traditional financial system depends on it.

A unified system would reduce costs and complexity for businesses. It could also accelerate adoption by providing clearer operational guidelines. The success of such a platform would likely encourage more institutional investment.

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Economist and analyst Noelle Acheson has made a notable statement. She says Bitcoin is no longer just a cryptocurrency. It has evolved into a macro asset. Major investors increasingly view it as a traditional portfolio component.

Acheson notes Bitcoin's behavior now aligns with macro assets. It did not surge sharply when gold and silver hit record highs. It also did not react strongly to a weaker U.S. dollar. This puzzles some investors. However, it confirms Bitcoin's new status. The market now sees it as part of the global financial system, not just a speculative coin.

Bitcoin has become the most liquid and easily tradable asset available around the clock. This makes it a convenient tool for investment fund managers. Yet, this high accessibility also increases its sensitivity to broader market swings.

Acheson suggests demand for Bitcoin as a dollar hedge will stay moderate for now. American investors remain heavily focused on the stock market. The crypto market is currently at a critical point. Adoption by large companies is growing. Simultaneously, regulatory uncertainty persists.

This imbalance is preventing more decisive price movement. Acheson expects significant growth over the next three years. She believes the market will become "too big to ignore or dismantle." This assumes U.S. regulators maintain a relatively favorable stance.

A larger market scale could act as a protective mechanism. It might shield the industry from potential future regulatory pressure. In a related observation, NYDIG's Greg Cipolaro noted investors are selling crypto for cash. He described the Bitcoin network as being used like an "ATM."