Flipster Crypto Weekly (January 2)

Crypto Opens 2026 in Holding Pattern as Liquidity Gradually Returns

January 2, 2026

Crypto markets entered 2026 without urgency, extending the low-commitment price action that marked the final days of December. Participation remained light, and early-year trading reflected positioning carryover rather than fresh risk-taking.

BTC spent the week rotating between the upper-$87K and low-$89K range, last trading near $88.8K. ETH pushed back above $3K after briefly slipping below it earlier in the week. Bitcoin dominance held steady around 59.5%, signaling continued preference for large-cap exposure over broader risk rotation.

Across sessions, price action remained orderly but shallow. Volatility stayed compressed as liquidity rebuilt gradually rather than abruptly.

Macro: Signals Delivered, Reaction Muted

Key macro inputs landed during the shortened trading week, but their impact was limited by timing and participation.

FOMC minutes reaffirmed a cautious, data-dependent policy stance, offering little new information beyond what markets had already priced following December’s rate decision. The tone reinforced patience rather than urgency, keeping rate expectations largely anchored.

U.S. Manufacturing PMI pointed to slowing momentum without signaling sharp deterioration, reinforcing a soft-landing narrative but failing to introduce directional stress. Together, the releases provided confirmation rather than surprise, and markets absorbed them without material repositioning.

Capital & Treasury Activity: Accumulation on Consolidation

Despite muted spot activity, balance sheet and treasury decisions remained active.

Strategy disclosed the purchase of 1,229 BTC for approximately $108.8M at an average price near $88,568, reinforcing continued institutional accumulation on consolidation. Bitmine Immersion expanded its Ethereum exposure, adding over 44,000 ETH during the week and bringing total holdings above 4.1M ETH.

Tether CEO Paolo Ardoino also confirmed that the company accumulated 8,888.8888888 BTC during Q4 2025, underscoring Tether’s growing role as a structural buyer across cycles.

Network & Product Developments

Protocol and ecosystem headlines continued to land even as prices stayed contained.

Vitalik Buterin cautioned that Ethereum risks losing its original mission if it prioritizes short-term narratives over resilient, censorship-resistant infrastructure. He emphasized that Ethereum’s long-term relevance depends on decentralization and global usability, positioning the network as durable internet infrastructure rather than a cyclical application layer.

Elsewhere, Lighter launched its native token $LIT, allocating 50% of supply to ecosystem growth, including a 25% airdrop to early users. The remaining supply was assigned to the team and investors. $LIT began trading at a fully diluted valuation of approximately $2.6B and secured a Coinbase spot listing shortly after launch.

Additional developments included Grayscale filing for a spot Bittensor ETF following the network’s first halving, Flow announcing plans to roll back roughly six hours of transactions after a $3.9M exploit, and Trump Media revealing plans to distribute a rewards token to DJT shareholders via Crypto.com.

Market Structure: Balanced, Liquid Enough to Move, Not Enough to Trend

Structurally, the market remains stable but constrained.

BTC continued to respect established support and resistance levels, while ETH’s move back above $3K improved near-term sentiment without materially shifting flows. 

Liquidity is improving at the margin, but not yet at levels that support sustained trends. As a result, markets remain responsive to headlines without committing to direction.

Outlook

The first week of 2026 reflects transition rather than resolution.

Policy signals have landed, institutional accumulation persists, and network development remains active. Yet without a meaningful return of volume and risk appetite, price is likely to remain tactical rather than thematic.

Markets are waiting for participation to catch up to narrative.

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.