The cryptocurrency market continued to chop its way higher over the past week as macroeconomic shifts, regulatory developments, and a growing emphasis on privacy have served as tailwinds.
Bitcoin (BTC) has led the charge higher in the crypto sector lately, as institutional adoption continues to grow. After dipping to a low of $89,200 last Thursday, bulls took control of the market and have since pumped King Crypto nearly 10% higher, hitting a high of $97,945 in trading on Wednesday.
BTC/USD 1-day chart. Source: TradingView
The bounce in BTC has been a welcome sight for crypto fans who grew weary of the market's struggles at the end of 2025, which saw Bitcoin drop 6% in Q4. The latest surge saw BTC hit its highest levels since mid-November 2025, when it briefly touched $126,000 before correcting.
U.S. inflation data contributed to the rally, with the latest data showing core CPI dipped to 2.6% from 2.7%, boosting expectations for Federal Reserve rate cuts. The rally higher left bears licking their wounds, with over $700 million in bearish leveraged trades being wiped out between Monday and Wednesday.
Other developments fueling this uptick include significant institutional inflows and regulatory optimism. U.S.-listed Bitcoin ETFs recorded $754 million in net inflows on January 13 – the highest since October 7, 2025 – signaling renewed confidence.
The introduction of the CLARITY Act by U.S. senators on January 12 also played a role. The legislation aims to establish a clear regulatory framework for cryptocurrencies, clarify agency jurisdictions, and potentially ease compliance burdens.
Amid the institutional inflows and positive regulatory developments, Grayscale called 2026 the "dawn of the institutional era," adding that structural shifts are accelerating digital asset adoption.
The positive news has some analysts back in bull mode, including Tom Lee from Fundstrat, who predicts BTC could hit a new all-time high above $126,000 by month's end, requiring a 35% gain, while maintaining a $200,000-$250,000 target for the year.
That remains to be seen, however, as Bitcoin remains largely trapped in the range it’s been trading in since the middle of November. Wednesday’s move broke above resistance at $95,000, and market watchers now wait to see if the momentum can sustain.
At the time of writing, Bitcoin trades at $96,441, an increase of 6.7% on the 7-day chart.
Top Regulated Brokers
Privacy is in Demand
The biggest gainer among the top 20 cryptocurrencies over the past week was Monero (XMR), which climbed nearly 70% on the 7-day chart.
XMR/USD 1-day chart. Source: TradingView
The rally began back on November 21, when XMR dipped to $320. By December 20, the token climbed to $500 before correcting to $409 on January 2. Since then, its price has surged higher, peaking at $800 on Wednesday, an increase of 95.9%. The sudden surge has triggered another round of profit-taking, with the price pulling back to $691.44 at the time of writing.
Monero’s main appeal is its focus on privacy. Amid the influx of institutional investors, many are now realizing that privacy comes at a premium in crypto, benefiting tokens like Monero and Zcash (XEC).
But not everyone is hot on privacy coins. In Dubai, a ban on the tokens took effect on January 12. In the EU, 2027 will see the introduction of restrictions on anonymous crypto accounts. Unfortunately for regulators, the response to these developments has been the opposite of what was intended: they have fueled a rotation to Monero, seen as the most resilient privacy token.
Recent struggles with Zcash, including a mass developer resignation and pivot to a new wallet, led to an 18% drop in ZEC, accelerating inflows to XMR as the premier privacy play. Monero survived 73 exchange delistings in 2025 but now trades at record highs, bolstered by political shifts like potential pardons for privacy tech developers.
Technically, XMR broke a multi-year channel, prompting analysts like Peter Brandt to compare its ongoing rally to that of silver’s “god candle” breakout.
Hey investors/traders
— Peter Brandt (@PeterLBrandt) January 12, 2026
If you cannot figure out what I am telling you here then I could never be of any value to your thinking pic.twitter.com/dLz1ncK2PX
Brandt now eyes an XMR price of $800-$1,000 in Q1. While overheating signals and lagging development activity pose pullback risks near $675, XMR's momentum reflects a broader market repricing of privacy as a premium asset.