Morgan Stanley's newly filed spot Bitcoin and Solana ETFs could strengthen the bank's long-term crypto positioning even if fund inflows remain modest, according to ProCap CIO Jeff Park. He argues the launch may enhance Morgan Stanley's brand, support its ETRADE crypto ambitions, and help attract talent, while Morningstar's Bryan Armour says the bank can quickly migrate existing Bitcoin clients into its own ETFs and add further legitimacy to the crypto ETF market.

CryptoQuant CEO Ki Young Ju said on Wednesday that capital flowing into Bitcoin has "dried up" as investors rotate toward stocks and precious metals, and he expects the asset to move "just boring sideways" for the next few months. Bitcoin is trading around $90,890 after retreating from a weekly high of $94,400 in early 2026, even though historical data show strong average gains in February and March.

Crypto industry groups and executives have criticized community bankers' requested changes to the GENIUS Act that would bar stablecoin holders from earning yield via third parties. They argue the move would strengthen China's interest-bearing digital yuan as a competitor to the US dollar and undermine carefully negotiated bipartisan legislation. Pro-crypto lawyer John Deaton called the proposal a "national security trap," while other industry leaders said it would harm competition and stall progress in stablecoin regulation.

U.S. Senator Tim Scott said the Digital Asset Market Clarity Act will face a Senate markup and market structure vote next Thursday. The bill, passed by the House in July 2025, aims to establish a comprehensive U.S. regulatory framework for crypto markets but still faces partisan disagreements over illicit finance and DeFi provisions. Market participants link delays around the legislation to continued regulatory uncertainty and recent volatility in crypto investment flows.

MN Trading Capital's Michael van de Poppe said the likelihood of a broad Bitcoin correction after the US military strike in Venezuela is relatively slim. At the time of publication, BTC traded near $91,290 after reclaiming $90,000, while CoinGlass reported $60.04 million in 24‑hour liquidations, including $55.01 million in shorts.

US spot Bitcoin and Ether ETFs started 2026 with a combined net inflow of $645.8 million on the first trading day. On Friday, Bitcoin funds added $471.3 million and Ether funds drew $174.5 million, marking the largest Bitcoin ETF inflow in 35 sessions and the biggest Ether inflow in 15.

At the start of 2026, a Santiment analyst reported that crypto-related discussions on social media are notably upbeat, even as broader sentiment gauges show fear. Brian Quinlivan cautioned that if Bitcoin were to rise rapidly toward $92,000 from around $89,930, retail trader FOMO could emerge and potentially signal unhealthy market behavior. January has historically delivered positive average returns for both Bitcoin and Ether, yet the Crypto Fear & Greed Index has remained in the Fear to Extreme Fear zone since early November 2025.

In July, the Genius Act became US law as stablecoin legislation, while Coinbase's John D'Agostino told CNBC on Friday the CLARITY Act tackles more complex market-structure issues. On Dec. 19, David Sacks said a January greenlight is possible, and CoinShares later linked $952 million weekly outflows to regulatory delays.

In November, Infinex and Synthetix founder Kain Warwick wagered at 10:1 odds with Kyle Samani that Ether would reach $25,000 by the end of 2025, leaving him owing $50,000 after the target was missed. Ether instead finished Dec. 31 at about $2,980 after an October downturn, and Warwick has now revised his 2026 goal to a more modest $10,000, while other analysts had also floated year-end targets around $10,000.