Crypto Market Under Tension: Bitcoin Recovers Slightly, Monero Reaches Record High

Bitcoin and Ethereum Show Mixed Picture

The crypto market started the new week with moderate gains. Bitcoin increased by 1.4 percent to $91,000 within 24 hours ^[3]. Ethereum is also trading slightly in the green and is listed above the $3,000 mark, but remains below last year's level ^[3]. Total market capitalization rose by 1.3 percent compared to the previous day ^[3].

Ethereum is currently trading at around $3,107 and has lost approximately 4.6 percent over the past 30 days ^[1]. The decline follows a $19 billion market liquidation in October that triggered a broader downward trend ^[1]. Nevertheless, ETH remains in its expected position as the second-largest cryptocurrency by market capitalization.

Analyst Brian Quinlivan from Santiment points out that the current social media sentiment for Ethereum resembles levels observed before the 2025 rally ^[1]. This could indicate limited downside potential and a possible strong recovery. Quinlivan recalled that ETH climbed last year from a yearly low near $1,470 in April to a new all-time high of around $4,900 after sentiment was particularly pessimistic ^[1].

Monero Breaks Away from the Market

A clear outlier in the current market environment is Monero. The privacy coin reached a new all-time high of $596 early Monday morning—the highest level in eight years ^[2]. Within 24 hours alone, the price rose by nearly 20 percent, and over the week Monero recorded a gain of around 30 percent ^[2]. The previous record high was from January 2018 and stood at approximately $542 ^[2].

Trading in privacy coins has structural peculiarities, as many of these cryptocurrencies are not available on regulated exchanges and trading is concentrated on a limited number of offshore platforms ^[2]. Liquidity is accordingly unevenly distributed, which can amplify short-term price fluctuations ^[2].

Market observers point to longer-term factors driving growing interest in privacy coins: The use of cash continues to be restricted in many countries, while surveillance of payment flows is increasing ^[2]. Crypto investor Andreessen Horowitz sees privacy as a critical competitive advantage for blockchains and believes it will ultimately determine dominance or irrelevance in the long term ^[2].

Market Remains Tense

The general sentiment in the crypto market remains weak. The Crypto Fear and Greed Index registers a value of 27 to 29, placing it in the "Fear" range ^[1][3]. Since early November, sentiment has fluctuated between "Fear" and "Extreme Fear" ^[1].

The Altcoin Season Index continues to signal a "Bitcoin Season," which favors BTC over altcoins ^[1]. XRP lost about one percent on a daily basis and is approaching the $2 mark ^[3].

Data from the Bitcoin derivatives market shows a balanced picture with funding rates of about 0.5 percent without signs of excessive leverage ^[3]. The ratio of long to short positions remains balanced at 1.45 ^[3].

Upcoming Market Events

Several potentially market-moving events are expected in the coming days. In January, token unlocks worth up to $2 billion are scheduled, including for ONDO, SUI, TRUMP, and UXD, which could lead to increased volatility, particularly for smaller altcoins ^[3].

On January 13, new U.S. inflation data will be released, which is crucial for the Federal Reserve's interest rate expectations and has immediate significance for risk assets ^[3].