Cryptocurrency News for Friday, 23 January 2026: Bitcoin Holds Key Level, Ethereum and Altcoins Recover, Institutional Investors Buy on Dips
As the week comes to a close, the global cryptocurrency market is attempting to stabilise following a significant correction in recent days. Bitcoin (BTC) is holding around the critical mark of $90,000, which will dictate the market's future direction. Ethereum (ETH) and several other leading altcoins are seeking support levels for recovery after a recent downturn. The total market capitalisation of the cryptocurrency sector has shrunk to approximately $3 trillion amidst increasing macroeconomic uncertainty, and the Fear and Greed Index has slipped into the "fear" zone, reflecting cautious investor sentiment. Nevertheless, substantial institutional players are using the price dip to accumulate positions, supporting the market and bolstering hopes for imminent stabilisation.
Bitcoin Struggles at the $90,000 Level
The flagship cryptocurrency Bitcoin trades around $90,000 at the end of the week, down from its historical peak of around $100,000, recorded at the beginning of January. Over the last several sessions, BTC has experienced a prolonged decline (approximately 10% from its peak), marking the most extended pullback in the past year. Pressure on Bitcoin has been attributed to a general reduction in risk appetite across global markets, with geopolitical and economic factors triggering sell-offs that have impacted digital assets as well. However, the ~$90,000 mark serves as a critical support level – as long as BTC remains above this threshold, the market has a chance to avoid a deeper decline. Some analysts have noted signs of a "bottom" forming: technical indicators point to oversold conditions, and large investors have begun actively purchasing coins around current prices. Successfully defending the $90,000 area could open paths for Bitcoin's recovery, with the nearest target for bulls being the psychological barrier of $100,000, the breach of which would restore more confident bullish sentiment to the market.
Altcoin Market: Stabilisation After Decline
Alternative cryptocurrencies (altcoins) have also experienced a significant drop alongside Bitcoin, yet signs of stabilisation are appearing by Friday. Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, previously dropped below $3,000 but is now attempting to consolidate near that level. Over the past week, ETH has lost about 5%, reflecting the vulnerability of altcoins during the general market correction. The broader market has also been under pressure, with the vast majority of the top 100 tokens appearing in the "red zone" in recent days, as investors partially shifted their funds into stablecoins (digital dollar equivalents) seeking refuge from volatility. For instance, XRP (Ripple's token) has stabilised around ~$1.85–1.90 after a continuous seven-day decline; Binance Coin (BNB) fell about 6% over the week (to the $840–850 range); Solana (SOL) retreated to ~$130, despite a record share of staked coins in the network (around 70%). However, if Bitcoin holds its current levels, pressure on altcoins may ease, as many of them could find local bottoms and transition towards cautious recovery. Investors are closely monitoring BTC dynamics as an indicator: stabilisation of the leading coin often serves as a signal for a return to buying in the altcoin segment.
Top 10 Most Popular Cryptocurrencies
As of today, the top ten largest and most popular cryptocurrencies by market capitalisation include the following digital assets:
- Bitcoin (BTC) – the leading cryptocurrency, dominating the market (about 60% of overall capitalisation). BTC price hovers near $90,000; following a powerful rally in 2025, Bitcoin is experiencing a correction from its historical peak, yet it confidently remains in first place, setting the tone for the entire crypto market.
- Ethereum (ETH) – the second-largest cryptoasset and foundational platform for smart contracts (decentralised finance, NFTs, and other applications). The current ETH price is around $3,000; sharing in the pressure from Bitcoin, Ethereum maintains its crucial role in the sector. Many experts anticipate that interest in Ethereum will increase in 2026 due to network advancements (new updates, scalability) and expansion of use cases.
- Tether (USDT) – the largest stablecoin pegged to the US dollar (1 USDT ≈ $1). USDT capitalisation stands around $80 billion; this stablecoin is widely used by market participants to hedge risks and preserve capital during periods of high volatility – in moments of uncertainty, funds flow into the digital dollar, supporting its stable position in the top three.
- BNB (BNB) – the proprietary token of the Binance ecosystem (the largest cryptocurrency exchange and the Binance Smart Chain). BNB price is situated around $850; due to its widespread use on the Binance platform and related services, BNB remains firmly within the top five cryptocurrencies. In recent days, the token has faced some declines amid the overall negative market backdrop but continues to play an important infrastructural role in the crypto ecosystem.
- USD Coin (USDC) – the second-largest stablecoin issued by the Centre consortium (Circle) and fully backed by reserves in US dollars (capitalisation of approximately $50 billion). USDC is widely used for payment, trading, and on DeFi platforms as one of the most reliable digital dollars. Demand for stablecoins increases during periods of market turmoil, confirming their significance for the industry.
- XRP (XRP) – cryptocurrency associated with fintech company Ripple (solutions for international payments). XRP trades around $1.90; after Ripple's high-profile victory over the SEC in 2025, this token experienced a sharp price increase and returned to the list of leaders. The current market correction has somewhat diminished XRP's achievements, but it continues to hold positions due to an active community and usage in payment applications.
- Solana (SOL) – a fast-growing blockchain platform focused on high speed and transaction throughput. SOL price hovers around $130; Solana has solidified its top-10 position due to rapid development of its ecosystem (DeFi, NFTs, etc.). Notably, a record ~70% of the entire SOL supply is staked, demonstrating community trust and long-term commitment from holders.
- Tron (TRX) – a popular blockchain platform for smart contracts and decentralised applications in Asia, also known as a foundation for issuing stablecoins and speedy fund transfers with minimal fees. TRX price fluctuates around $0.30; the active use of the Tron network (including USDT stablecoin operations) helps this token maintain its place among the largest cryptocurrencies globally.
- Dogecoin (DOGE) – a meme cryptocurrency originally created as a joke that has since gained mass popularity. DOGE price is roughly $0.12; despite its ironic origin, Dogecoin remains one of the most capitalised coins. Its price is characterised by high volatility, largely influenced by community sentiments and celebrity mentions; however, fan loyalty and a long history allow DOGE to maintain a position in the top ten.
- Cardano (ADA) – a blockchain platform for smart contracts focused on a scientific approach and staged technological upgrades. ADA token trades around $0.36; the project continues to implement technical improvements (for instance, recent upgrades have enhanced network scalability), maintaining investor interest. Thanks to the steady development of its ecosystem and an active community, Cardano remains a leader in the crypto market.
Geopolitical and Macroeconomic Factors
External conditions continue to significantly influence the sentiments of crypto investors. During the World Economic Forum in Davos (taking place 19-23 January), the geopolitical agenda took centre stage: an unexpected escalation of trade disagreements between the US and Europe triggered fears of a new wave of protectionism. A statement from the US President at the forum, issuing an ultimatum to the EU regarding Greenland and potential tariffs, provoked a sharp reaction from European leaders. This confrontational rhetoric has brought transatlantic relations to the brink of a trade war, heightening concerns among investors worldwide. As a result of this geopolitical noise, market participants have begun to avoid risk assets (stocks, cryptocurrencies) in favour of traditional "safe havens."
Additional pressure on the crypto market is exerted by macroeconomic factors as well. Yields on government bonds in the US and Europe remain elevated, reflecting expectations of tighter financial conditions. Precious metal prices have reached new heights: gold has surpassed its historical record, rising above $4,600 per ounce, while silver has also significantly increased in price. Concurrently, the VIX volatility index remains at recent highs, signalling heightened uncertainty in financial markets. Ahead of the upcoming Federal Reserve meeting scheduled for late January, investors are exercising caution – expectations of commentary on interest rates and inflation are dampening risk appetite. Collectively, geopolitical frictions and a stringent macroeconomic backdrop have led to a "risk-off" mode, during which cryptocurrencies temporarily lose appeal for a portion of global investors.
Investor Sentiments and Volatility
Recent events have significantly impacted the sentiments of cryptocurrency market participants. The Fear and Greed Index, having fallen into the "fear" area, indicates a predominance of caution: investors are concerned about possible continuation of the correction. Since the beginning of the week, the total capitalisation of the crypto market has declined by approximately $200 billion; however, in the last day, the decline has paused. Volatility remains elevated: sharp price fluctuations have led to mass liquidations of margin positions. According to analytical services, excessive leverage has largely been eliminated amid several days of sell-offs – over $2 billion in positions have been liquidated, which, on one hand, has intensified short-term declines, while on the other hand, has cleansed the market of overheating. Many short-term speculators have exited the market, while long-term investors are holding their positions, betting on fundamental growth factors. It is worth noting that the current pullback (around 10-15% from recent peaks) appears relatively modest in the historical context of cryptocurrency cycles. Several experts point out that compared to previous "crypto winters," this decline is so far shallow, and the market is showing signs of maturity – broader institutional participation and existing regulatory frameworks are softening the amplitude of the downturn. Nevertheless, in the short term, sentiment remains fragile, and any new negative news could further amplify volatility.
Institutional Investments and Adoption
Even amidst current volatility, interest from large players in digital assets remains high. The cryptocurrency industry continues to attract long-term investments and integrate into the traditional financial system:
- American corporation MicroStrategy, one of the largest corporate holders of Bitcoin, increased its BTC reserves by approximately $2 billion this week, taking advantage of the price decline. According to the company, it now holds about 3% of the total Bitcoin supply – a clear demonstration of institutional business trust in cryptocurrency even amid downturns.
- Another significant treasury company, Bitmine, made a notable purchase of Ethereum, bringing its holdings to an equivalent of ~3.5% of the entire circulating supply of ETH. This move indicates that institutional investors see long-term value not only in Bitcoin but also in leading altcoins, and are prepared to increase positions during price dips.
- In the US, discussions are progressing on a legislative initiative named the Clarity Act, aimed at creating clear rules for the crypto industry. Despite delays in passing (last week, the bill faced obstacles in the Senate), market participants expect it to be approved in the near future. The emergence of clear regulatory frameworks (for example, for cryptocurrency exchanges and stablecoins) could significantly enhance market transparency and attract new institutional players.
- Traditional financial institutions continue to implement solutions related to crypto assets. Major banks and exchanges are launching investment products in digital assets – from spot Bitcoin ETFs (several such funds from leading companies with combined assets worth tens of billions of dollars are already operating in the US) to platforms for trading tokenised securities. Meanwhile, central banks are exploring possibilities for digital currencies: for example, in China, the functionality of the state digital yuan (e-CNY) is being expanded, which indirectly stimulates interest in fintech solutions worldwide. Such initiatives illustrate that, despite short-term price fluctuations, the integration of cryptocurrencies into the global economy is steadily ongoing.
The combination of these factors confirms that large investors and organisations perceive the current correction more as an opportunity than a threat. Institutional capital entering the sector, alongside the development of infrastructure (regulation, new products, and services), lays the foundation for future growth in the cryptocurrency market.
Outlook and Forecasts
The crucial question facing market participants now is: how prolonged will the current correction be, and what will follow it? The future prospects for cryptocurrencies will largely depend on external conditions and Bitcoin's ability to hold above key levels. An optimistic scenario suggests that the correction is short-term: after a necessary "pause," the market could return to growth. For this to occur, it is desirable for external negativity to ease – de-escalation of geopolitical conflicts and softer signals from central banks (slower rate increases or more favourable economic forecasts) could restore investor confidence. In such a case, Bitcoin may attempt to rise again to levels above $100,000 in the coming weeks, which would lift the entire crypto market.
However, a pessimistic scenario remains: if the pressure from negative factors intensifies, the downturn could deepen. Should support around $90,000 be breached, analysts do not rule out Bitcoin declining to the ~$75,000 area and below. In an extremely negative scenario, levels as low as $50,000 have been mentioned, although such a sharp fall would require a confluence of multiple adverse circumstances. For now, the market displays relative resilience: the current pullback is significantly smaller than typical "bearish" cycles of previous years, and long-term investors and institutions continue to believe in the potential of cryptocurrencies. Many observers view the current situation as a phase of market healing – the exit of speculative capital and the transition of assets into "stronger hands." As external turbulence settles and volatility decreases, the cryptocurrency sector could gain momentum for growth based on accumulated fundamental factors. The expansion of institutional participation, technological development of blockchain platforms, and new use cases (from global payments to tokenisation of assets) are establishing the grounds for the next stage of a bullish market in the future. Consequently, most investors are now adopting a wait-and-see approach, ready to increase their investments as soon as signs of sustainable stabilisation and trend recovery appear.
