January 26, 2026
Finance

Cryptocurrencies Bounce Back Amid Stock Gains and Precious Metals Decline

Bitcoin and Ethereum Rally as Market Sentiment Shifts; Gold and Silver Prices Experience Significant Drops

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Summary

On Monday, major cryptocurrencies, including Bitcoin and Ethereum, reversed previous losses and recorded gains alongside rising stock markets. Meanwhile, the precious metals sector saw a sharp reversal with gold and silver prices declining from recent highs. Analysts highlight key Bitcoin price zones with substantial buy orders, suggesting potential support levels in the near term.

Key Points

Bitcoin rebounded to an intraday high of $88,743, recovering from prior losses with a 0.93% gain.
Ethereum, XRP, Solana, and Dogecoin also recorded positive growth, reflecting improved cryptocurrency market sentiment.
US equities advanced, with the Dow Jones, S&P 500, and Nasdaq all closing higher, amid tariff-related geopolitical updates.
Precious metals experienced significant price reversals; silver fell 8% and gold declined 1.33% after recent highs.

Monday saw a resurgence in major cryptocurrency prices and stock indices, contrasting with a notable retracement in precious metals following recent rallies. Investors appeared to exhibit increased risk appetite, resulting in differential performance across asset classes.

The leading cryptocurrency, Bitcoin (BTC), recouped losses sustained on Sunday, ascending to an intraday peak of $88,743. By 8:25 p.m. Eastern Time, Bitcoin's price was recorded at $88,316.74, representing a 0.93% gain over the previous 24-hour period. Additionally, Bitcoin's trading volume increased by 10% during the same timeframe, indicating heightened market activity.

Ethereum (ETH) followed suit, climbing 1.80% to $2,924.02, approaching the $3,000 psychological threshold. XRP (XRP) also experienced a rise of 1.14% to a price of $1.90. Other notable cryptocurrencies like Solana (SOL) and Dogecoin (DOGE) recorded gains of 2.01% and 0.03%, respectively, closing at $124.09 and $0.1222.

Market dominance metrics revealed Bitcoin held 59% of the cryptocurrency market share, while Ethereum accounted for nearly 12%, reaffirming their substantial influence within the digital asset landscape.

Market data from Coinglass indicated that over $360 million in positions were liquidated across the crypto market within the last 24 hours. Bearish short positions constituted a significant portion, with $265 million being closed out. The decline in Bitcoin's open interest by 0.51% coupled with a price increase typically signals short covering, where short sellers buy back their positions to mitigate losses.

The Crypto Fear & Greed Index, an indicator of market sentiment, improved modestly, shifting from a reading of "Extreme Fear" to "Fear," suggesting a gradual increase in investor confidence.

Several cryptocurrencies saw substantial gains, especially among coins with market capitalizations exceeding $100 million. Axie Infinity (AXS) surged by 39.12% to $2.68, Akash Network (AKT) increased 13.91% to $0.4813, and Venice Token (VVV) rose 14.45% to $3.49 during the same session.

Overall, the global cryptocurrency market capitalization experienced a near 1% increase to reach approximately $2.98 trillion, highlighting a modest but positive expansion in market value.

In the equities market, major US stock indices closed with gains on Monday. The Dow Jones Industrial Average climbed 313.69 points, or 0.64%, to finish at 49,412.40. The S&P 500 advanced 0.50%, closing at 6,950.23, while the Nasdaq Composite increased by 0.43% to 23,601.36. These movements occurred against a backdrop of geopolitical developments, specifically tariff-related news.

Recent statements by US President Donald Trump raised the prospect of 100% tariffs on Canadian imports. Nevertheless, Canadian Prime Minister Mark Carney emphasized that current trade activities comply with the United States-Mexico-Canada Agreement (USMCA), providing some reassurance to markets.

Precious metals markets diverged sharply from equities and cryptocurrencies. Silver prices contracted approximately 8% to $105 per ounce after reaching an all-time intraday high of $117 per ounce. Similarly, spot gold decreased 1.33%, closing at $5,016.20. These reversals marked a significant correction following prior strength in these commodities.

Analysts focusing on cryptocurrency order books identified critical support levels for Bitcoin. Renowned commentator Ted Pillows noted that buy orders amounting to $152.8 million were concentrated in the $85,000 to $88,000 price range. Based on this observation, he projected that this zone should act as a price floor in the short term.

Complementing this view, analyst EliZ described a recent price bounce at $86,000 following a liquidity sweep. The analyst described the situation as straightforward: liquidity lines are established either above or below the Monday trading range—approximated between $86,000 and $88,000—implying clear price boundaries for near-term movements.

These technical analyses underscore the significance of current price levels as potential support zones that could stabilize Bitcoin in forthcoming sessions.

Overall, Monday’s market activity showcased a bifurcation between risk assets like cryptocurrencies and equities, which advanced, and traditionally safer assets such as gold and silver, which retreated amid shifting investor preferences.

Risks
  • Ongoing geopolitical tensions related to tariffs could create market volatility affecting both equities and cryptocurrencies.
  • High liquidation volumes in the crypto market indicate potential short-term price instability.
  • The substantial drop in precious metals prices may signal underlying market uncertainty or abrupt shifts in investor risk appetite.
  • Reliance on key support zones for Bitcoin suggests susceptibility to near-term technical fluctuations if those levels fail to hold.
Disclosure
Education only / not financial advice
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Ticker Sentiment
BTC - positive ETH - positive XRP - positive DOGE - positive SOL - positive
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