January Slide: Bitcoin and Ethereum Under Pressure as Market Holds Its Breath
The first week of January 2026 is ending on a cautious note for crypto markets. Bitcoin (BTC) is giving up ground, trading at $91,373, down nearly 4% from the previous week’s peak. Ethereum (ETH) is following the trend at $3,139, dropping about 5% over the same period. While moderate, these corrections mark a stark contrast to the euphoria seen at the end of 2025. Analysis: What’s Weighing on the Market? Several macroeconomic factors explain this pullback. First, the release of the Federal Reserve’s minutes on January 3 reignited fears of prolonged high interest rates. Investors now expect the first rate cut no earlier than March, dampening appetite for risk assets like cryptocurrencies. Second, the end of the fiscal year triggered massive profit-taking. On-chain data shows that addresses holding BTC for over six months sold nearly 1.2% of their positions in December, a trend continuing into January. This ‘old money’ is exiting the market, creating selling pressure. Finally, ETH is facing specific headwinds: intensifying competition from layer-1 blockchains (Solana, Avalanche) and stagnant transaction volumes on Ethereum, with no major catalyst in sight. The ETH/BTC ratio has slipped to 0.034, its lowest since October 2025. Outlook: What to Watch This Week? In the short term, the market remains vulnerable. The psychological $90,000 level for BTC is a key threshold: a break below could accelerate selling toward $87,000. For ETH, the $3,000 support level is crucial. If it gives way, a test of $2,800 is likely. However, some positive signals are emerging. Inflows into US spot Bitcoin ETFs have resumed, suggesting institutional interest may be returning.
