01-18-2026, 10:04 AM
Volatility Inbound? Crypto Consolidation Tightens In Choppy Start To The Year 2026
BTC advanced roughly 6% mid-week, signalling an early shift in sentiment as investors digested year-end portfolio resets and weighed potential U.S. policy developments.
Ethereum also regained momentum, climbing approximately 9% to $3,350, while Solana revisited the prior week’s highs near $143.50.
Tuesday’s CPI release for December 2025 came in slightly softer on core measures (+0.2% m/m vs. +0.3% expected, with y/y holding at +2.7%), signaling continued disinflation and providing a mild tailwind for risk assets by reinforcing expectations of steady Fed policy. At press time, the odds for a cut at the next meeting are ~5%.
Key catalysts included ongoing Senate discussions on market structure legislation and upcoming economic data, with altcoins displaying varied performance and some rotation into DeFi and layer-1 assets.
Looking ahead, it’s hard to see beyond the current consolidation, with more choppy price action likely until Bitcoin breaks out of this current range.
Given the length of this consolidation, traders may want to prepare for a volatile move when it concludes, which could offer a clearer directional bias for the remainder of Q1.Read CloseOption Broker Review (10$ No Deposit Bonus)