January 5 - January 11, 2026
Market Cap
-2.2%
Volume
-21.4%
BTC Dominance
-1.1%
Sentiment
The second week of January 2026 opened with strong momentum before a mid-week correction tested investor resolve. Total cryptocurrency market cap fell 2.16% from $3.24 trillion to $3.17 trillion, as a sharp reversal on January 7 triggered $486 million in Bitcoin ETF outflows, the largest single-day outflow in months. Bitcoin dipped below $90,000 while the Fear and Greed Index dropped to 27, signaling cautious sentiment.
Despite the pullback, altcoins demonstrated notable strength. Bitcoin dominance declined 1.08 percentage points as capital rotated into AI infrastructure, Layer 1 platforms, and meme coins. Render Token led the market with a staggering 67% weekly gain, driven by institutional AI fund allocations, while SUI surged 38% in its longest winning streak since April. The divergence between Bitcoin and altcoins suggests an emerging altseason, though fragile macro conditions and technical resistance levels warrant caution heading into the week ahead.
The Senate is expected to hold hearings on the landmark CLARITY Act in January 2026, marking the closest the industry has come to comprehensive federal regulation. White House crypto adviser David Sacks stated the administration is closer than ever to passing legislation that would clearly delineate SEC and CFTC oversight.
On January 7, US-based Bitcoin spot ETFs recorded their largest single-day outflow in months at $486.08 million, with Fidelity losing $247.62 million and BlackRock shedding $129.96 million. The outflow coincided with Bitcoin dropping below $90,000 and marked a shift from early-January optimism.
The decentralized AI token sector experienced a breakout week, with combined market capitalization jumping 14% as institutional investors increased allocations. Grayscale disclosed AI infrastructure tokens now comprise over 15% of their specialty fund portfolios, signaling growing mainstream interest in the AI-crypto convergence.
Aave is preparing its most significant architectural evolution since v1. The v4 upgrade introduces a Hub and Spoke architecture enabling customizable lending markets without fragmenting liquidity, aiming to recapture market share and expand protocol capabilities.
Japan endorsed a plan to cut the maximum crypto tax rate to a flat 20%, down from rates as high as 55%. The reform aligns digital asset taxation with equities and could spur increased institutional participation in one of Asia\'s largest crypto markets.
Render
RENDER
+67.0%
Render surged on renewed institutional interest in AI infrastructure and decentralized compute solutions. The Grayscale Decentralized AI Fund reported a 15.05% allocation to RENDER on January 6, while the broader AI sector saw its market cap jump 14% in a single week.
Sui
SUI
+38.0%
Sui became the top gainer among CoinGecko\'s top 100, with trading volume surging 91% to $1.7 billion. The token closed green for five consecutive days, its longest winning streak since April, defying headwinds from monthly vesting token releases.
Shiba Inu
SHIB
+28.7%
Shiba Inu posted strong gains as meme coins extended their start to 2026. On January 4 alone, SHIB surged 13% amid broader retail enthusiasm, demonstrating that meme narratives remain a significant market force despite Bitcoin consolidation.
Stellar
XLM
+16.0%
Stellar gained momentum as payment-layer tokens benefited from sector rotation. The token maintained a market cap above $10 billion, reflecting solid confidence in the payments and settlement infrastructure narrative.
XRP
XRP
+13.0%
XRP gained steadily to return above $2.10, driven by consistent institutional inflows into XRP ETFs. SoSoValue data showed $55 million in net inflows to XRP ETF products in the final 5 trading days of the period.
Zcash
ZEC
-18.0%
Zcash experienced a significant drop following core developer resignations announced January 7-8. The protocol lost approximately $1.6 billion in market cap as investor confidence wavered amid concerns about development continuity.
Cardano
ADA
-10.0%
Cardano underperformed after failing to maintain early January gains. The protocol struggled to capitalize on the broader altcoin rotation, with capital flowing to AI and meme narratives instead of smart contract platforms.
Solana
SOL
-8.0%
Solana showed weakness despite strong fundamentals in its RWA ecosystem. The token faced profit-taking after its strong 2025 performance, with investors rotating gains into emerging Layer 1 competitors like SUI.
Bitcoin
BTC
-4.5%
Bitcoin declined amid significant ETF outflows and technical pressure below its 200-day EMA. The leading cryptocurrency tested support zones at $91,500 as investors chased equities and precious metals instead.
Ethereum
ETH
-3.0%
Ethereum eased alongside Bitcoin after the early-January rally, though losses were less severe. The network continued preparing for upcoming upgrades while validators showed renewed staking interest despite price weakness.
The third week of January includes several notable catalysts that may influence market direction. The BNB Chain Fermi Hard Fork on January 14 introduces speed improvements, reducing block time to 0.45 seconds. The Ondo Finance token unlock on January 18 will release 1.94 billion tokens, a notable supply event for the RWA sector. The Federal Reserve\'s January 28 FOMC meeting remains on the calendar, with markets currently pricing a 20% probability of a rate cut. Bitcoin has been trading in a range between $88,000 and $95,000 during recent sessions.
BNB Chain Fermi Hard Fork
Major upgrade reducing block time to 0.45 seconds could strengthen BNB\'s Layer 1 position and drive increased DeFi activity on the network.
Senate CLARITY Act Hearing Continuation
Progress on market structure legislation could trigger renewed institutional interest and potentially reverse ETF outflow trends.
BitcoinDay Naples 2026 Conference
Regional conference focused on Bitcoin adoption and self-custody education contributes to long-term holder sentiment building.
Ondo Finance (ONDO) Major Token Unlock
Release of 1.94 billion ONDO tokens could create selling pressure and test market confidence in the RWA tokenization narrative.
Federal Reserve FOMC Meeting
Rate decision with 20% probability of cut. Dovish language could support crypto, while hawkish stance may extend the correction.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
