Cryptocurrencies underperformed during an otherwise risk-on week, with Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) stuck in tight consolidation ranges even as select altcoins showed relative strength.
What Happened: According to Wintermute’s January 2026 market update, the divergence came despite a broad rally across traditional assets. The Russell 2000 jumped 4.6%, while equities, gold and U.S. Treasurys all gained amid a softer dollar. Bitcoin slipped 0.6% on the week and Ethereum fell 0.7%, making crypto one of the few asset classes to finish lower.
The weakness appeared driven by crypto-specific flows rather than macro conditions. Bitcoin briefly rallied from the high-$80,000s to nearly $94,700 before sellers pushed it back below $90,000, with prices stabilizing near $91,000 by week’s end. Ethereum followed a similar pattern, topping near $3,220 before sliding toward $3,080.
Repeated rejection in the $94,000–$95,000 zone and firm support around $89,000–$90,000 have compressed price action sharply, a setup that has historically resolved to the upside once volatility returns.
Altcoins showed selective strength. XRP (CRYPTO: XRP), Solana (CRYPTO: SOL) and Dogecoin (CRYPTO: DOGE) benefited from roughly $100 million in combined ETF inflows. XRP posted double-digit gains, while Solana advanced by mid-single digits.
Why It Matters: ETF flows were a major driver of price action. After strong early inflows totaling about $1.2 billion, sentiment reversed sharply, with more than $1.1 billion in outflows over the week and roughly $260 million exiting Ethereum products.
Even so, market behaviour did not signal panic. Trading volumes remained healthy, and selling pressure appeared closer to short-term profit-taking than structural distribution.
Image: Shutterstock
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