January 19 - January 25, 2026
Market Cap
-6.5%
Volume
+6.8%
BTC Dominance
+0.2%
Sentiment
The crypto market endured its most turbulent week of 2026, with total market capitalization plunging 6.51% from $3.24 trillion to $3.02 trillion. The selloff began on January 19 (MLK Day) when reduced liquidity from U.S. market closures combined with aggressive tariff threats from President Trump triggered a cascade of liquidations. Over 240,000 traders saw positions wiped out within 24 hours, totaling more than $875 million in liquidations, with 91% coming from long positions.
Bitcoin fell below $93,000 early in the week before staging a partial recovery to $91,000 by January 23, buoyed by suspected Bank of Japan intervention in currency markets. The Fear and Greed Index dropped to 43 (worry levels), though analysts noted a lack of retail capitulation, suggesting potential for deeper corrections before a sustainable reversal. BTC dominance increased 0.23 percentage points to approximately 59%, indicating Bitcoin outperformed altcoins during the downturn.
Despite the broader weakness, AI and GPU-focused tokens defied the trend spectacularly. Render surged 57% as institutional and retail investors piled into decentralized compute infrastructure plays. Polygon also rallied 31% following the announcement of its Open Money Stack framework for stablecoin payments. On the regulatory front, the Senate Agriculture Committee postponed its CLARITY Act markup to January 27 after major industry participants withdrew support, highlighting ongoing tensions between legislators and the crypto industry over DeFi developer exposure provisions.
On January 19, crypto markets experienced a sharp selloff with Bitcoin dropping below $93,000. Over 240,000 traders were liquidated within 24 hours, with losses exceeding $875 million. The crash was driven by President Trump's tariff threats against Europe combined with low liquidity due to the MLK Day holiday.
Bitcoin recovered from its weekly lows to climb above $91,000 on January 23 following suspected foreign exchange intervention by the Bank of Japan. The move broke BTC out of its tight $88,000-$90,000 trading range, providing relief to battered markets.
Read moreThe Senate Agriculture Committee postponed its scheduled CLARITY Act markup after major industry participants withdrew support for revised bill text. Key sticking points include DeFi developer liability provisions and conflicts-of-interest rules barring government officials from profiting from crypto. The markup is now scheduled for January 27.
Read moreMichael Saylor's Strategy (formerly MicroStrategy) disclosed a $1.25 billion Bitcoin purchase, accumulating nearly 15,000 BTC since the start of 2026. Total company holdings now exceed 687,000 bitcoin, reinforcing institutional conviction despite market volatility.
Ethereum raised its data capacity per block on January 8, increasing the blob target to 14 and maximum limit to 21 as part of its scaling roadmap. The network also saw $479 million in ETF inflows during January 12-16, the first positive week since October.
Render
RENDER
+57.0%
Render's GPU compute platform token delivered the week's best performance among large-cap coins, surging 57%. Strong traction in AI-focused cryptocurrency investments drove institutional and retail interest in decentralized GPU infrastructure as demand for compute power continues to accelerate.
Polygon
POL
+31.0%
Polygon's native POL token jumped 31% following co-founder Sandeep Nailwal's announcement of the Open Money Stack, a modular framework for global stablecoin payments. The news renewed investor confidence in the Layer 2 scaling solution's strategic direction.
Shiba Inu
SHIB
+16.7%
Shiba Inu gained 16.7% over the week, riding momentum from broader memecoin activity and continued community engagement. Despite the general market downturn, SHIB maintained strong retail interest and active ecosystem development.
Stellar
XLM
+16.0%
Stellar posted nearly 16% gains over the week, trading near $0.233. The network's focus on cross-border payments and financial inclusion continues to attract institutional adoption and regulatory recognition as a compliant payments infrastructure.
XRP
XRP
+11.5%
XRP gained 11.5% as regulatory clarity following its SEC victory continues to bolster investor confidence. The token benefits from expanding On-Demand Liquidity adoption among banks and payment providers for cross-border settlement.
Monero
XMR
-30.7%
Monero suffered the steepest decline among major cryptocurrencies, falling over 30% amid regulatory concerns about privacy coin bans and exchange delistings. Price broke below critical support levels, triggering stop-loss cascades that accelerated the decline.
Hyperliquid
HYPE
-19.5%
Hyperliquid's derivative exchange token dropped nearly 20% as risk-off sentiment drove investors away from leveraged trading platforms. Market volatility and liquidation cascades on competing platforms created negative spillover effects.
Immutable
IMX
-15.2%
Immutable declined over 15% as the gaming and NFT ecosystem token suffered from broader weakness in the gaming narrative. Reduced institutional interest and declining on-chain gaming metrics added pressure throughout the week.
Morpho
MORPHO
-12.8%
Morpho's lending protocol token fell nearly 13% amid DeFi sector weakness and reduced yield farming activity. Rising competition and protocol fee pressure contributed to underperformance versus the broader market.
PancakeSwap
CAKE
-7.9%
PancakeSwap declined nearly 8% as DeFi tokens underperformed during the risk-off environment. Technical breakdown below key support levels triggered mechanical selling and further downward momentum.
The week of January 26 to February 1, 2026 brings critical macro and regulatory catalysts that could determine whether markets stabilize or extend their decline. The U.S. Federal Reserve's FOMC meeting on January 27-28 stands as the most significant event, with markets watching closely for any shift in the Fed's stance on interest rates. A rate cut would likely boost risk assets including crypto, while maintaining rates at 3.50-3.75% could dampen recovery hopes. The rescheduled Senate Agriculture Committee CLARITY Act markup on January 27 adds another layer of uncertainty. After major industry participants withdrew support, negotiations continue around DeFi developer liability and conflicts-of-interest provisions. The outcome could either accelerate or delay the path to regulatory clarity that institutions cite as the biggest barrier to adoption. Token unlock events warrant close attention, with Bitget Token (BGB) releasing approximately 140 million tokens worth $504 million on January 26. This represents 20% of circulating supply and could create significant selling pressure. Additionally, the January 31 government shutdown deadline looms, with potential disruptions to SEC and CFTC operations if Congress fails to reach a funding agreement.
Bitget Token (BGB) Major Unlock ($504M)
Approximately 140 million BGB tokens representing 20% of circulating supply will unlock, potentially creating significant selling pressure and increased volatility for BGB and broader altcoin sentiment.
Senate CLARITY Act Markup (Rescheduled)
The postponed markup resumes with ongoing negotiations around DeFi developer exposure and conflicts-of-interest provisions. Passage or further delays will significantly impact regulatory clarity expectations.
U.S. Federal Reserve FOMC Meeting Begins
The Fed's first policy decision of 2026 will determine if rates remain at 3.50-3.75% or are reduced. A rate cut would boost Bitcoin and Ethereum as investors move toward riskier assets.
U.S. Government Shutdown Deadline
A shutdown would disrupt SEC and CFTC operations, delaying crypto policy decisions and increasing market uncertainty. Previous shutdowns have correlated with increased Bitcoin volatility.
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.
