Bitcoin has plummeted nearly $4,000 from its weekly high, erasing much of the gains it had accumulated since the start of the year.
At a Glance
- Bitcoin hit a two-month peak of $98,000 on Wednesday
- The asset dropped to $94,500 after President Trump revealed Kevin Hassett will stay at the National Economic Council
- Despite the correction, BTC is still up 3.5% week-over-week
- Monero stole the spotlight with a 50% surge to near $700
The cryptocurrency market experienced a dramatic reversal after a week of steady climbs. Bitcoin began the period flat at $90,500, then gained momentum Sunday evening by touching $91,000 and $92,000 on Monday. Bulls broke through resistance Tuesday, culminating in a Wednesday night spike to $98,000-bitcoin’s highest level in roughly two months.
The rally unraveled within 24 hours. After failing to hold $97,000, BTC slid to just under $94,500. The drop followed President Trump’s statement that Kevin Hassett is expected to remain National Economic Council Director rather than become the next Federal Reserve Chair.
Even with the pullback, bitcoin retains a 3.5% weekly gain and a market capitalization near $1.9 trillion. Its performance, however, is dwarfed by privacy coin Monero, which has soared more than 50% and trades close to its all-time high above $700.
Altcoins Split Between Double-Digit Winners and Losers
The broader market shows mixed signals. Alongside Monero, ICP and PUMP have posted double-digit gains. Large-cap coins ETH, BNB, and TRX also sit in positive territory.
On the losing side, ZEC, SUI, LTC, and HBAR are deep in the red for the week.
| Coin | Weekly Change | Price |
|---|---|---|
| BTC | +3.6% | $94,500 |
| ETH | +4.8% | $3,260 |
| XRP | -4.2% | $2.03 |
Market data provided by QuantifyCrypto puts total capitalization at $3.28 trillion, 24-hour volume at $118 billion, and bitcoin dominance at 57.5%.
Sentiment Gauge Flips to Greed Amid Rally
Bitcoin’s climb pushed the Fear and Greed Index into “greed” territory for the first time in three months. Historically, such sentiment shifts often precede short-term pullbacks, and this week proved no exception.
Legislative Setback Adds Pressure
The Senate Banking Committee postponed the highly anticipated crypto market structure bill. Chairman Tim Scott announced the delay Thursday, contributing to the week’s downward momentum.
Ethereum Network Activity Explodes
Ethereum set a new record as 393,600 fresh wallets were created in a single day on January 11, even though ETH remains well below its 2025 peak.
Corporate Moves and Predictions
BitMEX co-founder Arthur Hayes predicted a liquidity-driven rebound for bitcoin in 2026, blaming late-2025 weakness on a contracting U.S. dollar credit cycle. Separately, Ethereum treasury firm Bitmine invested $200 million into YouTube star MrBeast’s company, Beast Industries.
Caution Flags on Monero’s Meteoric Rise
Monero’s record-breaking week prompted warnings against fear-of-missing-out entries. The privacy token peaked near $800 on January 14 before cooling slightly, yet analysts urge restraint given the rapid ascent.
Key Takeaways
- Bitcoin’s correction illustrates how sensitive crypto remains to U.S. policy signals
- Altcoin performance diverged sharply, highlighting selective risk-on sentiment
- Record wallet creation on Ethereum signals growing network adoption despite price lag
- Postponement of the market structure bill underscores regulatory uncertainty
- Monero’s surge shows privacy coins can still capture outsized attention in bull phases
The week’s events underscore the sector’s volatility and its quick reaction to both macro headlines and internal network milestones.
