Week of January 27 - February 2, 2026
U.S. President Donald Trump announced at the World Economic Forum that he will soon sign cryptocurrency regulation into law, reaffirming his stance that the United States aims to be the global capital of crypto. He added that Congress is working intensively on legislation related to the crypto market structure.
U.S. Treasury Secretary Scott Bessent also confirmed at the World Economic Forum that the United States is continuing its plan to establish a Strategic Bitcoin Reserve, while exploring budget-neutral strategies to expand the reserve without impacting fiscal spending.
Coinbase Institutional noted that the crypto market entered the first quarter of this year with stronger fundamentals following the major correction in Q4 last year. Market conditions have become more balanced and less fragile, with no signs of panic selling, while investor holding behavior has begun to normalize.
Spot Bitcoin ETFs recorded net outflows of USD 1.33 billion over the past week, marking the worst week since February 2025, in contrast to the previous week, which saw net inflows of USD 1.42 billion.
Vitalik Buterin, co-founder of Ethereum, announced that advancing decentralized social media will be one of his top priorities in 2026, based on his belief that only open and decentralized platforms can foster genuine competition and truly serve users’ interests.
Hong Kong plans to issue its first batch of stablecoin issuer licenses within the first quarter of this year as part of its strategy to build a comprehensive digital finance ecosystem encompassing crypto exchanges and tokenized assets. Currently, the Hong Kong Securities and Futures Commission (SFC) has approved licenses for 11 crypto trading platforms.
CryptoQuant highlighted that institutional demand for Bitcoin (BTC) continues to grow, with wallets holding between 100 and 1,000 BTC, including ETF-related holdings, accumulating an additional 577,000 BTC over the past year, representing 33% growth over the past 24 months.
Bitcoin (BTC) has declined due to geopolitical tensions, with the price moving close to the previous low at USD 84,000. This level can be used as a potential buying entry point. The price trend may see a short-term rebound, as the RSI is approaching the oversold zone. If a rebound occurs, the first resistance level is at USD 92,000. However, if support fails to hold, it is advisable to cut losses, as the price could decline further toward USD 80,000.
Ethereum (ETH) has declined toward a key support level at USD 2,600, which can be used as a potential entry point. However, if this support fails to hold, it is advisable to pause further investment. The resistance target is at the previous high of USD 3,400, and the price is expected to continue trading within this range for a period of time.
Kaia (KAIA) delivered a 52.27% gain over the past week, with the price pulling back after a sharp rally. This may present a potential entry opportunity, but a stop-loss is necessary. If the price breaks below the support level at USD 0.0490, which is the previous low, downside risk increases. The resistance target remains at the previous high of USD 0.0974.
Axie Infinity (AXS) posted a 45.49% gain over the past week, with high price volatility, requiring cautious investment. Look for potential entry opportunities near the support level at USD 2.147, and consider taking profits at the resistance level around USD 3.112.
The cryptocurrency market declined amid geopolitical concerns, worries over a potential U.S. government shutdown, and capital flows shifting into gold and silver. Bitcoin (BTC) is expected to continue trading sideways for some time until tensions related to Greenland and the Middle East begin to ease.
This week’s key highlight is the Federal Open Market Committee (FOMC) meeting, with the decision scheduled to be announced on January 28, 2026. Interest rates are widely expected to remain unchanged; however, close attention should be paid to the Fed Chair’s remarks, as they may influence monetary policy decisions at the next meeting.
In addition, major technology companies such as Apple, Microsoft, and Meta are set to report earnings. Positive financial results and business outlooks could also provide support for Bitcoin prices.
Investment strategy: Market volatility remains elevated, and investors are awaiting greater clarity on U.S. crypto regulation, particularly the CLARITY Act. If approved, it would help boost market confidence. Accumulation of large-cap cryptocurrencies such as Bitcoin and Ethereum (ETH) can be considered at support levels, while investment in altcoins should be approached with caution or avoided for now.
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Remark: The views, information, knowledge, and opinions expressed herein are those of the individuals involved and do not represent the views of Bitazza or its employees. Neither this email nor the content presented constitutes investment advice.