Cryptocurrency News for Friday, January 23, 2026: Bitcoin Maintains Key Level, Ethereum and Altcoins Recover, Institutional Investors Buy the Dip
As the week comes to a close, the global cryptocurrency market is attempting to stabilize after a significant correction in recent days. Bitcoin (BTC) is holding steady around the critical mark of $90,000, which will determine the market's future direction. Ethereum (ETH) and a range of other leading altcoins are searching for support levels for recovery following recent declines. The total market capitalization of the cryptocurrency market has shrunk to approximately $3 trillion amid increased macroeconomic uncertainty, while the "Fear and Greed" index has fallen into the "fear" zone, reflecting investors' cautious sentiment. Nevertheless, major institutional players are seizing the price drop to accumulate positions, providing support to the market and instilling hope for swift stabilization.
Bitcoin Fights for the $90,000 Level
The flagship cryptocurrency, Bitcoin, is trading around $90,000 by the end of the week, retreating from its historical peak of approximately $100,000 observed in early January. In recent sessions, BTC has experienced a prolonged decline (around 10% from its peak), marking the longest pullback in the past year. Pressure on Bitcoin has been exacerbated by a general risk-off sentiment across global markets: geopolitical and economic factors have triggered sell-offs affecting digital assets as well. However, the ~$90,000 mark serves as a critical support level – as long as BTC remains above this price point, the market has a chance to avoid deeper declines. Some analysts have noted signs of a "bottom" forming: technical indicators suggest oversold conditions, and large investors have started actively buying coins around current prices. Successfully defending the $90,000 area could pave the way for Bitcoin's recovery, with the nearest target for bulls being the psychological threshold of $100,000, the breach of which could restore more confident bullish sentiment in the market.
Altcoin Market: Stabilization After Decline
Alternative cryptocurrencies (altcoins) have experienced a significant drop alongside Bitcoin, although signs of stabilization are beginning to emerge by Friday. Ethereum (ETH), the second largest cryptocurrency by market capitalization, previously dipped below $3,000 but is now striving to consolidate near this level. Over the past week, ETH has lost about 5%, reflecting the vulnerabilities of altcoins in the face of the overall market correction. The broader market has also been under pressure: the vast majority of the top 100 tokens have remained in the "red zone" in recent days, with investors partially reallocating funds to stablecoins (digital equivalents of the dollar) to seek refuge from volatility. For instance, XRP (Ripple's token) stabilized around ~$1.85–1.90 after a continuous seven-day decline; Binance Coin (BNB) fell approximately 6% (to the range of $840–850) over the week; Solana (SOL) retreated to ~$130, despite a record share of staked coins in the network (around 70%). However, if Bitcoin maintains its current levels, the pressure on altcoins may ease – many of them may find a local bottom and begin to recover cautiously. Investors are closely monitoring BTC dynamics as an indicator: the stabilization of the leading coin often signals a return to buying in the altcoin segment.
Top 10 Most Popular Cryptocurrencies
As of today, the ten largest and most popular cryptocurrencies by market capitalization are as follows:
- Bitcoin (BTC) – the leading cryptocurrency, dominating the market (around 60% of total capitalization). BTC price remains near $90,000; following a powerful rally in 2025, Bitcoin is currently experiencing a correction from its historical peak but still confidently holds the first position and sets the tone for the entire crypto market.
- Ethereum (ETH) – the second-largest crypto asset and the foundational platform for smart contracts (decentralized finance, NFTs, and other applications). Current ETH price is around $3,000; Ethereum is facing pressure following Bitcoin's decline but maintains a key role in the industry. Many experts expect interest in Ethereum to increase in 2026 due to network developments (new upgrades, scalability) and an expansion in use cases.
- Tether (USDT) – the largest stablecoin pegged to the US dollar (1 USDT ≈ $1). USDT's market capitalization is around $80 billion; this stablecoin is widely used by market participants for hedging risks and preserving capital during periods of high volatility – in moments of uncertainty, funds flow into the digital dollar, maintaining its stable position in the top three.
- BNB (BNB) – the native token of the Binance ecosystem (the largest cryptocurrency exchange and the BSC blockchain network). BNB's price is around $850; due to its wide usage on the Binance platform and related services, BNB remains firmly in the top five largest cryptocurrencies. In recent days, the token has seen some declines amid the overall negative market backdrop, but it 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 US dollar reserves (capitalization around $50 billion). USDC is widely used for transactions, trading, and on DeFi platforms as one of the most reliable digital dollars. During periods of market turmoil, the demand for such stablecoins rises, confirming their significance for the industry.
- XRP (XRP) – a cryptocurrency associated with the fintech company Ripple (providing solutions for international payments). XRP's price stands at around $1.90; following a high-profile victory against the SEC in 2025, this token sharply increased in value and returned to the top ten. The current market correction has somewhat diminished XRP's gains, but it continues to hold its position thanks to an active community and usage in payment applications.
- Solana (SOL) – a rapidly growing blockchain platform focused on high-speed and high-throughput transactions. SOL's price is around $130; Solana has solidified its position in the top ten due to the rapid development of its ecosystem (DeFi, NFTs, etc.). Notably, a record ~70% of the total SOL supply is engaged in staking, which indicates community trust and the long-term involvement of holders.
- Tron (TRX) – a popular blockchain platform in Asia for smart contracts and decentralized applications, also known as a foundation for stablecoin issuance and rapid fund transfers with minimal fees. TRX's price hovers around $0.30; the active use of the Tron network (including operations with USDT stablecoins) enables this token to maintain its position among the largest cryptocurrencies in the world.
- Dogecoin (DOGE) – a meme cryptocurrency initially created as a joke but later gaining mass popularity. DOGE's price is approximately $0.12; despite its ironic origin, Dogecoin remains one of the most capitalized coins. Its price is characterized by high volatility and largely depends on community sentiment and celebrity mentions, yet the dedication of its fans and its long history allow DOGE to maintain its position in the top ten.
- Cardano (ADA) – a blockchain platform for smart contracts developing with a focus on a scientific approach and phased technological updates. ADA's token is trading around $0.36; the project continues to implement technical improvements (recent upgrades have enhanced network scalability), maintaining investor interest. Thanks to the steady development of its ecosystem and an active community, Cardano remains among the leaders of the cryptocurrency market.
Geopolitical and Macroeconomic Factors
External conditions continue to significantly impact the sentiments of crypto investors. At the World Economic Forum in Davos (taking place January 19-23), the geopolitical agenda has come to the forefront: the unexpected escalation of trade disputes between the US and Europe has raised concerns about a new wave of protectionism. A statement made by the US President at the forum, accompanied by an ultimatum to the EU (regarding Greenland and possible tariffs), has provoked a sharp reaction from European leaders. This confrontational rhetoric has placed transatlantic relations on the brink of a trade war, heightening concerns among investors worldwide. As a result of this geopolitical noise, market participants have tended to shy away from risk assets (stocks, cryptocurrencies), flowing into traditional "safe havens."
Additional pressure on the crypto market is exerted by macroeconomic factors. Yields on US and EU government bonds remain elevated, reflecting expectations of tightening financial conditions. Prices for precious metals have reached new heights: gold has surpassed historical levels, climbing above $4,600 per ounce, while silver has also seen significant increases. Simultaneously, the VIX volatility index remains at recent highs, signaling heightened uncertainty in financial markets. As the Federal Reserve's next meeting approaches (scheduled for the end of January), investors are exercising caution – expectations of further comments regarding interest rates and inflation are dampening risk appetite. Together, geopolitical tensions and a stringent macroeconomic backdrop have led to a "risk-off" mode, during which cryptocurrencies temporarily lose attractiveness to some global investors.
Investor Sentiment and Volatility
Recent events have markedly impacted the sentiments of cryptocurrency market participants. The sentiment index (Fear & Greed Index), having dipped into the "fear" territory, indicates a prevailing sense of caution: investors are concerned about a possible continuation of the correction. Since the beginning of the week, the total cryptocurrency market capitalization has decreased by around $200 billion, although in the last 24 hours, the decline has paused. Volatility remains high: sharp price fluctuations have led to widespread liquidations of margin positions. According to analytics services, the excessive leverage was largely eliminated during several days of sell-offs – a total of over $2 billion in positions have been liquidated, which, on one hand, intensified short-term declines, but on the other hand, cleared 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 decline (around 10-15% from recent peaks) appears relatively moderate in the historical context of cryptocurrency cycles. A number of experts suggest that compared to previous "crypto winters," this downturn remains shallow, and the market displays signs of maturity – broader institutional participation and the presence of regulatory frameworks are mitigating the amplitude of declines. Nevertheless, in the short term, the mood remains fragile, and any new negative news could once again heighten volatility.
Institutional Investments and Adoption
Even amid the current volatility, interest from major players in digital assets remains high. The cryptocurrency industry continues to attract long-term investments and integrate into the traditional financial system:
- The 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 drop. According to the company, it now owns around 3% of the total Bitcoin supply – demonstrating institutional business confidence in cryptocurrencies even during a downturn.
- Another major treasury firm, Bitmine, made a significant purchase of Ethereum, raising its holdings to a volume equivalent to ~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 willing to increase positions during price dips.
- In the US, discussions are advancing regarding a legislative initiative called the Clarity Act, aimed at creating clear rules for the crypto industry. Despite temporary delays in adoption (the bill faced hurdles in the Senate last week), market participants anticipate its passage in the near future. The emergence of transparent 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 products for investment in digital assets – from spot Bitcoin ETFs (a number of such funds from leading companies with collective assets worth tens of billions of dollars are already operating in the US) to platforms for trading tokenized securities. At the same time, central banks are exploring the possibilities of digital currencies: for example, in China, the functionality of the state digital yuan (e-CNY) is expanding, indirectly stimulating interest in fintech solutions globally. Such initiatives indicate that despite short-term price fluctuations, the integration of cryptocurrencies into the global economy is steadily progressing.
The aggregate of these factors confirms that large investors and organizations perceive the current correction more as an opportunity than a threat. The institutional capital entering the sector and the development of infrastructure (regulation, new products, services) lay the groundwork for future growth in the cryptocurrency market.
Outlooks and Predictions
The principal question currently facing market participants is how prolonged the existing correction will be and what might follow it. The further prospects for cryptocurrencies will largely depend on the external backdrop and Bitcoin's ability to stay above key support levels. An optimistic scenario suggests that the correction is of a short-term nature: after a necessary "pause," the market could return to growth. For this, a softening of external negativity is desirable – de-escalation of geopolitical conflicts and more lenient signals from central banks (slowing interest rate hikes or more favorable economic forecasts) could restore investor confidence. In this case, Bitcoin could attempt to rise above the $100,000 mark in the coming weeks, lifting the entire cryptocurrency market.
However, a pessimistic scenario remains: if the pressure from negative factors intensifies, the decline may deepen. In the event of a breach of support around $90,000, analysts do not rule out a decrease in Bitcoin to the ~$75,000 area and below. In an extremely negative scenario, levels as low as $50,000 are cited, although such a sharp drop would require the coincidence of multiple adverse circumstances. For now, the market demonstrates relative resilience: the current decline is considerably less than typical "bear" 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 to "stronger hands." As external turbulence subsides and volatility decreases, the cryptocurrency sector may receive an impetus 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 asset tokenization) are forming the prerequisites for the next phase of a bull market in the future. Consequently, most investors are currently taking a wait-and-see approach, ready to increase their investments as soon as signs of sustainable stabilization and trend recovery emerge.
