What should cryptocurrency investors watch for in the first quarter of 2026 - and why are early year fluctuations normal?

The first quarter of each year typically sees an increase in volatility in cryptocurrency markets. Investors reposition themselves after the end of the year and respond to new narratives in the market. Some of the key things to watch for in 2026 are the direction of Bitcoin, altcoin participation, trading volume, and the overall market sentiment. Additionally, sharp price fluctuations during this period are a normal part of the market cycle.