Bitcoin and Ethereum recorded their first significant weekly declines of the year, with drops of 6% and 10% respectively, prompting capital shifts across altcoins. While some tokens like Kaia and Canton Network surged, others including Ethena and Arbitrum faced sharp falls. This rotation highlights selective confidence in the market despite broader corrections.
The cryptocurrency market experienced notable volatility during the week ending January 25, 2026, as major assets faltered and investors rotated into select opportunities. Bitcoin slipped approximately 6%, marking its initial meaningful weekly loss this year, while Ethereum declined by 10%. This downturn triggered divergent performances among altcoins, with capital moving toward defensive and high-conviction plays rather than a uniform collapse.
Among the standout performers, Kaia saw a mid-week breakout followed by over 20% daily profit-taking, retreating to around $0.074. Despite the pullback, technical indicators like RSI in the mid-40s and positive MACD suggested the bullish trend remained intact. Kaia recently aligned with the Japan Blockchain Association and partnered with Line Next on Project Unify, targeting a stablecoin hub for USD, JPY, and THB through a super app, slated for late 2026.
Canton Network bucked the trend in privacy coins, rallying 36% from $0.12 to near $0.16, with RSI steady in the mid-50s and buyer-favored DMI readings. It was the sole major privacy coin to gain amid segment-wide weakness. MYX Finance also advanced 32% post its January 22 V2 upgrade, rebounding from $5.3-$5.4 toward $7, bolstered by features like portfolio margining, cross-chain expansions, and a 10 million MYX/ZKP airdrop. Gold-backed tokens Tether Gold and PAX Gold rose 9% and 10%, respectively, alongside LayerZero's 11% gain, reflecting demand for stability amid macro uncertainty.
On the downside, Ethena extended its downtrend with a 15% drop below $0.18, showing oversold RSI and capital outflows via negative CMF, entering a low-consolidation phase. Arbitrum weakened similarly by nearly 15%, breaking from $0.20-$0.21 to $0.17-$0.18, with bearish RSI in the mid-30s sustaining selling pressure. Artificial Superintelligence Alliance fell over 8% from $0.25 to $0.22-$0.23, mirroring broader AI token losses. Solana, Chainlink, and Sui Network declined 10%, 11%, and 16%, respectively.
Overall, the week underscored a correcting market with rotations, not panic, as traders locked profits and chased strength, emphasizing the need for risk management.
