Flipster Crypto Weekly (January 16)

Crypto Rally Extends as January Momentum Meets Policy and Positioning

January 16, 2026

Crypto markets advanced through the third week of January, building on early-year momentum before settling into consolidation. Price action remained active across sessions, with macro data, institutional commentary, and regulatory developments shaping flow more than outright leverage expansion.

BTC climbed to an eight-week high near $96,934 midweek before easing modestly, last trading around $95,585. ETH tracked higher alongside, reaching $3,354 before consolidating near $3,318. Bitcoin dominance drifted higher through the week, ending near 59.7%, signaling continued preference for large-cap exposure as risk appetite stayed selective.

Volatility increased around event risk, but follow-through remained measured. Markets advanced, digested gains, and rotated rather than accelerating.

Macro & Policy: Inflation Eases, Rates Stay Anchored

Macro data provided constructive confirmation without triggering repricing.

U.S. December core CPI printed at 0.2% m/m and 2.6% y/y, both slightly below expectations, while headline CPI matched forecasts at 2.7% y/y. The data reinforced a cooling inflation trend without materially shifting the policy outlook, keeping expectations centered on a prolonged Fed hold rather than near-term easing.

Markets responded positively but pragmatically. The CPI release supported risk assets broadly, yet crypto price action remained orderly, reflecting confidence rather than urgency.

Capital Flows: Institutions Back in Focus

Institutional participation emerged as a central narrative.

JPMorgan projected that crypto inflows could rise further in 2026 following a record ~$130B in 2025. While last year’s inflows were driven primarily by retail ETF demand and digital asset treasury purchases, the bank expects 2026 growth to skew increasingly institutional as regulatory clarity improves and de-risking fades.

Treasury accumulation reinforced that view. Strategy disclosed the acquisition of 13,627 BTC for approximately $1.25B at an average price near $91,519, marking one of its largest additions to date and highlighting continued balance-sheet conviction during consolidation phases.

Market Structure: Range Expansion, Not Escape Velocity

Despite higher highs, structure remains controlled.

BTC spent much of the week rotating between $90K and $96K, with ETH holding above $3.1K after the CPI-driven move. Depth improved modestly, but liquidity remains insufficient to sustain unchecked momentum without continued headline support.

Price behavior reflected participation growth rather than leverage buildup. Pullbacks were absorbed, but extensions faded quickly, keeping the market tactical rather than trend-locked.

Ecosystem & Product Developments

Ecosystem activity accelerated beneath the surface.

South Korea’s Financial Services Commission reportedly ended a nine-year ban on corporate crypto investment, allowing listed companies and professional investors to allocate up to 5% of equity annually to top-20 cryptocurrencies. The shift could open the market to roughly 3,500 entities, marking a structural policy inflection in a historically active crypto jurisdiction.

CME Group announced plans to expand its crypto derivatives offering with futures tied to Cardano, Chainlink, and Stellar, reinforcing the continued institutionalization of altcoin exposure through regulated venues.

In social and creator infrastructure, Kaito announced it will sunset Yaps and open incentivized leaderboards ahead of the launch of Kaito Studio. The move signals a pivot away from permissionless, high-volume distribution toward a curated, tier-based creator marketing model.

Platform-level shifts continued elsewhere. X banned rewards for posts and imposed restrictions on so-called “InfoFi” crypto projects, tightening monetization pathways tied to engagement farming.

Additional Headlines

Other notable developments this week included:

• World Liberty Financial launching lending markets powered by Dolomite

• Dubai imposing a ban on privacy tokens

• Deribit rolling out USDC-settled options for AVAX and TRX

• CoinGecko exploring a potential sale at an estimated $500M valuation

• Zama initiating a token sale via CoinList with a $55M floor FDV

• BitMine announcing a $200M equity investment in Beast Industries, the company behind MrBeast

Outlook

The third week of January reflects momentum with discipline.

Inflation data has stabilized expectations, institutional interest is rebuilding, and policy barriers continue to shift. Yet liquidity remains selective, and positioning appears more rotational than directional.

Markets are advancing, but not chasing.

For now, price remains responsive rather than runaway, rewarding patience, structure awareness, and tactical execution.

Trade accordingly.

Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. Trading digital assets and digital asset derivatives comes with a significant risk of loss due to its high price volatility, and is not suitable for all investors. Please refer to our Terms.