As 2026 begins, the digital asset market is showing more maturity but fewer clear trends. Bitcoin no longer behaves like it did in earlier cycles, where 80% crashes were common. Volatility has dropped sharply, suggesting the current correction may be limited, with much of the downside already absorbed.

The traditional four-year Bitcoin cycle still appears intact, with the last peak forming after the U.S. election in late 2025. This points to 2026 being more of a consolidation year rather than one of extreme rallies or crashes.

Liquidity conditions are mixed. Global rate-cut expectations offer support, but tighter U.S. liquidity and wider credit spreads are holding back aggressive risk-taking. With leverage mostly cleared and on-chain activity slowly improving, a disciplined approach like dollar-cost averaging and controlled exposure makes the most sense in this phase.#BTC #AI

BTCUSDT

Perp

77,700.7

-1.11%