In a recent analysis, DaanCrypto, a prominent figure in the cryptocurrency world, shed light on the current situation and advised on what crypto enthusiasts should do. On New Year’s Day, altcoins are experiencing a decline, leading to anticipations of stagnant movements, particularly with U.S. markets closed for the holiday. This has prompted a contemplative mood in the crypto space.
What Lies Ahead for Cryptocurrencies?
In the last quarter of 2025, a significant portion of investors sold their holdings, motivated by the belief in the four-year cycle narrative, which predicts a collapse in 2026. This has resulted in altcoins retreating to crucial support levels while Bitcoin remains confined within a narrow range. DaanCrypto emphasized that the current scenario reflects a slow consolidation phase still in progress.
So, what does this mean for investors? As the direction is still unclear, they should remain on the sidelines until they receive clear signals indicating the end of this monotonous period. Roman Trading suggested that even short-term investors should steer clear of the markets at least until the holiday mood dissipates.
“The Funding Rate Heatmap does not show any extreme values in terms of very high or low rates over the last three months. After the initial drop, we are in this slow consolidation phase, where a rebalance is observed around the year-end/start, and the market seems to search for a reason to move. This usually takes time, and it is often best to wait for this momentum to return before actively reengaging.”
Is It Time for Crypto’s Revival?
Last year, U.S. stocks saw a growth of $9 trillion, whereas $325 billion was wiped off the crypto markets. Although liquidity exists, it showed a preference for stocks over crypto within risk markets. In the last quarter of last year, several altcoin ETFs were approved, signaling both a tumultuous and potentially hopeful entry into the new year. If crypto inflows do not remain stagnant for two consecutive years, 2026, with ETF support, could be a growth year for not just Bitcoin but altcoins too.
In his first Bitcoin assessment of the year, Poppe made bold statements such as “a $90,000 test is expected next week, and the rise will begin.” However, there is an MSCI decision coming on January 15, and the Supreme Court is expected to finalize tariffs this month. Thus, if 2026 is to be a year of ascent, it might start at least by the end of January at the earliest. Or perhaps crypto might surprise with a joyful event we haven’t seen in a while.
