Crypto opened 2026 with mixed signals. Bitcoin price swung around the $90K mark as U.S.–Venezuela tensions sparked a swift sell-off before buyers stepped back in. Social sentiment suddenly turned upbeat, hinting that retail is ready to chase a move if BTC pushes toward $92K, but fear is still lingering under the surface. At the same time, U.S. debt smashed through $38.5 trillion, fresh hacks hit EVM users, and regulators returned from the holidays with momentum.
It’s a messy but important week. Dive into the full recap to see what actually moved the market.
Analysts Warn Crypto Slump May Deepen in January 2026
Analysts say the current crypto downturn could extend into January 2026. Bitcoin is trading below $90,000 and has broken key technical supports, forming bearish patterns that point to a possible decline to $74,000. Altcoin market caps show a double-top pattern, ETF inflows have faded, futures open interest is falling, and fear dominates sentiment — all signaling limited chances of an imminent bull run.
CLARITY Act Nears Passage, but Analysts Doubt It Will Lift Crypto Prices
The U.S. CLARITY Act aims to divide crypto oversight between the SEC and CFTC, reduce regulatory uncertainty, and formalize market structure rules. With high odds of becoming law after House approval, it follows last year’s GENIUS Act on stablecoins. However, analysts say the bill alone is unlikely to boost prices, noting prior regulation did not prevent declines and that major institutions are already active in crypto.
Virtuals Protocol Jumps on 2026 AI Agent Roadmap and New Partnerships
Virtuals Protocol (VIRTUAL) surged over 20% to around $0.88, driven by its newly revealed 2026 AI agent roadmap and fresh partnerships. The plan focuses on scaling agent commerce, workflow orchestration, capital markets expansion, and robotics integration. A partnership with OpenMind AGI added momentum. Technical indicators turned more positive, suggesting a potential trend shift if strength continues.
Altcoin Season Signals Emerge as Sentiment Improves, but Risks Remain
The Altcoin Season Index climbed to 24, and the Fear and Greed Index rose to 34 as crypto markets turned higher and total capitalization surpassed $3 trillion. Meme coins led gains, with PEPE up 32%. Analysts say rate cuts and rising futures interest could fuel an altcoin season, but warn of double-top patterns and a possible dead-cat bounce while Bitcoin stalls near $90,000.
Coordinated Wallet Drains Hit EVM Users Across Multiple Chains
A live wallet-draining campaign is hitting users across several EVM networks, including Ethereum, Optimism, BNB Chain and Blast, with losses already exceeding $107,000. Researcher ZachXBT reports many small thefts, typically under $2,000 per wallet, linked to a key address “0xAc2e…”. The attack appears widespread rather than protocol-specific, likely tied to large-scale phishing or compromised wallet software, highlighting a growing trend of many victims with smaller individual losses.
Chainlink Accumulation Surges as LINK Tests Key Support
Chainlink is trading near $12.50 after a sharp pullback, with price sitting on major support. The Strategic LINK Reserve made its largest purchase yet, adding 94,267 LINK and lifting holdings to 1.42 million tokens. Spot LINK ETF inflows and declining exchange supply signal accumulation, but charts show a possible head-and-shoulders risk toward $10. A rebound toward $20 remains possible if support holds.
NVIDIA Eyes Further Gains as AI Demand and Earnings Momentum Build
NVIDIA shares pulled back from a record high of $212 to about $186, but analysts still see upside. The chipmaker posts rapid growth, high margins, and strong free cash flow projections, with a DCF valuation near $300. Surging AI data-center spending, rising Chinese chip demand, and potential gains from IPOs such as Anthropic and OpenAI add catalysts. Technically, NVDA remains in an uptrend toward prior highs.
Trump Media Plans Token Launch and Airdrop for Shareholders
Trump Media & Technology Group will launch a new utility token and airdrop it to eligible shareholders, aiming to integrate the asset into its media platforms to enhance access and engagement. The move would instantly create an on-chain user base as investors claim tokens through verified wallets. The plan faces regulatory scrutiny and potential exchange hesitancy due to political and compliance risks.
Chiliz Surges on Decentral Protocol Launch and EU MiCA Authorization
Chiliz (CHZ) jumped about 19% in a day and over 30% in a week as investors responded to two key catalysts: the launch of the Decentral Protocol and MiCA authorization across the EU. The new protocol enables tokenizing club revenues and stablecoin loans, while MiCA approval enhances regulatory credibility. The price now approaches resistance near $0.047, with analysts split on whether it will break out or reject.
Bitwise Accelerates Altcoin ETF Push With 11 New SEC Filings
Bitwise has filed with the U.S. SEC for 11 altcoin-focused ETFs, seeking to bring single-asset crypto exposure into regulated U.S. markets. The proposed funds cover tokens such as AAVE, UNI, TRX, SUI, NEAR, ZEC, TAO, ENA, and HYPE, with a 60/40 split between direct holdings and related products. Target effectiveness is mid-March 2026 under the new streamlined listing standards.
Altcoin Season Likely Delayed as Bearish Signals Strengthen Across Market
Altcoin season looks unlikely in the near term. Total altcoin market cap has fallen from $974B to about $550B, breaking below the 50-week EMA and forming a double-top pattern that points to further downside toward $451B. Key indicators such as RSI and MACD are weakening, while Ethereum, Solana, and Dogecoin are showing bearish chart patterns. Persistent market fear and a soft Bitcoin outlook further undermine prospects for an altcoin rally.
