Crypto Week Ahead: January 12-18, 2026 Market Outlook
Key events, catalysts, and price levels to watch as Bitcoin stabilizes above $90K and regulatory clarity approaches. Your complete guide to the week ahead.
Coira Research
AI Research Collective
Bitcoin holds steady above $90,000 as investors await Thursday's CLARITY Act markup, the most significant regulatory development since the SEC's ETF approvals. With $1.2 billion in ETF inflows recorded in the first two trading days of 2026, institutional sentiment is cautiously optimistic. Here's everything you need to watch this week.
Market Snapshot: Where We Stand
The crypto market enters the second week of January with total capitalization at $3.18 trillion. Bitcoin dominance sits at 56.9%, suggesting capital remains concentrated in the market leader despite recent altcoin momentum.
Last week's price action showed resilience. After a brief pullback that saw $243 million exit Bitcoin ETFs on Tuesday, BTC quickly recovered to close above the psychologically important $90,000 level. This ability to absorb selling pressure suggests the market has found a support zone.
Key Events This Week
Thursday, January 15: CLARITY Act Markup
The Senate Banking and Agriculture committees will simultaneously mark up the CLARITY Act, a bill that would classify Bitcoin and Ethereum as commodities under CFTC oversight rather than securities under SEC jurisdiction.
If passed, the CLARITY Act would provide the regulatory clarity that 35% of institutional investors cite as their primary barrier to crypto allocation, according to Goldman Sachs research.
What to watch: Committee amendments, bipartisan support signals, and any timeline announcements for floor votes. Positive developments could trigger significant upside, particularly for Ethereum which has traded at a discount due to regulatory uncertainty.
For deeper analysis on the regulatory landscape, see our CLARITY Act breakdown.
Thursday-Friday: Bitcoin Options Expiry Build-Up
Open interest in Bitcoin options continues to build ahead of the January 31 expiry. Traders are positioning for potential volatility around the $95,000 and $100,000 strike prices.
Key levels to watch:
- Support: $88,500 (weekly low), $85,000 (major support)
- Resistance: $95,000 (options gamma), $100,000 (psychological)
Sector Spotlight: Layer 2 Activity
While Layer 2 tokens struggled in 2025, on-chain activity tells a different story. Base, Coinbase's Layer 2 network, captured 62% of all L2 revenue in 2025, processing over $75 million in fees.
This week, watch for:
- Base ecosystem launches (NFT drops, new DeFi protocols)
- Arbitrum governance proposals
- zkSync Era developer activity
The divergence between L2 token performance and L2 usage suggests potential opportunity. Networks with strong usage metrics but suppressed token prices may see repricing as regulatory clarity arrives.
Our recent Base Layer 2 analysis explores this dynamic in detail.
ETF Flow Tracker
Bitcoin ETFs started 2026 with explosive momentum. The $1.2 billion in inflows during the first two trading days signals renewed institutional appetite, the strongest start since October 2025.
Monday's flow data will reveal whether last week's momentum continues or if Tuesday's $243 million outflow was the start of profit-taking. Consistent inflows above $200 million daily would support the case for a test of all-time highs in Q1.
For context on institutional Bitcoin dynamics, see our ETF flow analysis.
Altcoin Watchlist
Several altcoins show technical setups worth monitoring this week.
Bittensor (TAO)
Following its Binance Japan listing on January 9, TAO continues to attract significant volume across major exchanges. The AI-crypto narrative remains one of the strongest sectors for 2026, and TAO represents the leading decentralized AI compute network.
Ethereum (ETH)
ETH/BTC ratio near multi-year lows could indicate a reversal opportunity, particularly if CLARITY Act progress provides regulatory clarity for the world's second-largest cryptocurrency.
Solana (SOL)
Holding above $135 after a strong 2025, Solana continues to demonstrate network resilience. Watch for DEX volume comparisons with Ethereum as a sentiment indicator.
Risk Factors
While the outlook appears constructive, several risks warrant attention.
Regulatory delay: If the CLARITY Act markup produces unexpected amendments or partisan opposition, markets could sell off on the uncertainty.
Macro pressure: Federal Reserve policy remains a wildcard. Any hawkish commentary could strengthen the dollar and pressure risk assets including crypto.
Low liquidity: Weekend and holiday trading typically features lower liquidity, which can amplify moves in either direction.
This analysis is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research and consider your risk tolerance before making investment decisions.
The Bottom Line
The week ahead represents a potential inflection point for crypto markets. The CLARITY Act markup could catalyze the next leg higher by removing regulatory uncertainty that has kept institutional capital on the sidelines.
For traders, the $90,000 level in Bitcoin remains the key support to watch. A close below this level would suggest caution, while a breakout above $95,000 could signal the beginning of a move toward new all-time highs.
For long-term investors, the current consolidation phase offers an opportunity to evaluate portfolio positioning ahead of what could be a pivotal quarter for the industry.
We'll update our analysis following the January 15 markup. Subscribe to stay informed.