“The first coffees of 2026 have a bitter aftertaste for investors watching cryptocurrency prices. While January is traditionally a month of New Year’s resolutions that are eventually forgotten, it appears that Wall Street has made an irreversible decision. Between official endorsements by major banks and political reshuffles at the helm of the Federal Reserve, the crypto landscape isn’t just changing: it’s being transformed. However, behind the institutional gloss, reality […]”, — write: businessua.com.ua
The first coffees of 2026 have a bitter aftertaste for investors watching cryptocurrency prices. While January is traditionally a month of New Year’s resolutions that are eventually forgotten, it appears that Wall Street has made an irreversible decision. Between official endorsements by major banks and political reshuffles at the helm of the Federal Reserve, the crypto landscape isn’t just changing: it’s being transformed.
However, behind the institutional gloss, the reality of the market remains a jungle where only the few survive the most experienced Several cryptocurrencies seem to be ignoring this trend. It is worth taking a look.
Key points of this article:
- Wall Street legitimized Bitcoin with Bank of America’s decision to allow its advisors to include up to 4% BTC in managed portfolios.
- The potential nomination of Kevin Hassett to head the Federal Reserve System could lead to an influx of liquidity that will have a strong impact on the cryptocurrency market.
According to a recent analysis by BeinCrypto, also available on BeinCrypto, we are entering a period of high technical tension. There is a clear agenda of past and future events that can positively affect the price of certain cryptocurrencies. Eight are highlighted:
- Bitcoin (BTC) is a key asset, and Bank of America is leading the charge. Starting from January 5, its investment divisions (Merrill, Private Bank) can officially include 1% to 4% of Bitcoin ETFs to their managed portfolios. This marks the end of purgatory for the orange asset. This decision, announced a few weeks ago, took effect this Monday.
- Ethereum (ETH): On January 7, the network activated the BPO-2 update. Less publicized than ETFs, but vital: it optimizes data management for layer 2, making the ecosystem smoother and less expensive.
- Hyperliquid (HYPE): The protocol issues approximately 1.2 million tokens (worth $330 million). In a market looking for direction, such an infusion of liquidity is a major stress test.
- Stellar (XLM): Voting for Protocol 25 (X-Ray) in the testnet promises to provide its own privacy (Zk-protection). Stellar is trying to regain its status as the preferred choice of privacy-seeking financial institutions.
- Other factors involved are: Athena (ENA) and Arbitrum (ARB) will face mass unlocks (171M and 92M tokens respectively), while BNB Chain prepares its Fermi hard fork for January 14th, and Renzo (REZ) goes into an aggressive deflationary model, burning 90% of its fees.
Regulation and Macroeconomics: Is Uncle Sam Going ‘Crypto Friendly’? Bank of America’s change is significant. By allowing his 15,000 consultants actively recommend Bitcoin the bank joins the very exclusive club of Morgan Stanley and BlackRock.
This paradigm shift is taking place against the backdrop of an increase in the number of prisoners in institutions from 20% to 28% in just a few months.
Meanwhile, all eyes are on the White House. Donald Trump is expected to announce his nominee to chair the Federal Reserve System around January 9. The name being floated, Kevin Hassett, is causing a shiver of excitement among risk asset advocates. Known as a “dovish” (one who favors accommodative monetary policy), Hassett favors rapid interest rate cuts. Increased liquidity and a potentially weaker dollar are the perfect ingredients for a volatile mix for Bitcoin and Ethereum. It’s the return of the “Fed put option,” but this time it can directly benefit cryptocurrencies.
Cold Shower: Why You Shouldn’t Succumb to Fear of Missed Opportunity (FOMO) This is where I put down my pen to urge you to be careful. It’s tempting to think of this “Top 8” and others floating around social media and Google as a shopping list to become a millionaire by the end of the month. The reality is more nuanced.
First, remember that Bitcoin is still 30% below its historical high of $126,199 . The market has lost $600 billion in market capitalization since last October. Bank of America’s “good news” may have already been factored in by those in the know.
Next, be careful with unlocking tokens (HYPE, ARB, ENA). In finance, an increase in supply without a sharp increase in demand inevitably leads to a decrease in price. A “significant” event means volatility, not necessarily growth. Finally, the small-cap altcoin sector is currently in a deep slump, hitting lows not seen since 2020.
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