Here's an odd one: stocks rallied, gold rallied, treasuries rallied, the dollar softened, and cryptocurrencies just kind of shrugged. Bitcoin (BTC) dropped 0.6% for the week while Ethereum (ETH) fell 0.7%, making crypto one of the only asset classes to finish in the red during what was otherwise a textbook risk-on week.

According to Wintermute's January 2026 market update, the divergence was striking. The Russell 2000 jumped 4.6%, and traditional risk assets moved higher across the board. So what's going on with crypto?

Bitcoin Gets Stuck in a Box

The weakness looks like a crypto-specific story rather than a macro one. Bitcoin briefly rallied from the high-$80,000s to nearly $94,700 before sellers stepped in and pushed it back below $90,000. By week's end, prices were hovering around $91,000. Ethereum followed a similar script, topping near $3,220 before sliding toward $3,080.

What's interesting is how tight the range has become. Bitcoin keeps getting rejected around $94,000 to $95,000, but there's firm support around $89,000 to $90,000. That kind of compression has historically resolved to the upside once volatility kicks back in.

Altcoins Show Some Life

While the majors marked time, select altcoins actually posted gains. XRP (XRP), Solana (SOL), and Dogecoin (DOGE) benefited from roughly $100 million in combined ETF inflows. XRP posted double-digit gains, while Solana advanced by mid-single digits.

ETF Flows Tell a Story

ETF flows were the main event. After strong early inflows totaling about $1.2 billion, sentiment reversed sharply. More than $1.1 billion flowed out over the week, with roughly $260 million exiting Ethereum products alone.

But here's the thing: the market doesn't look panicked. Trading volumes remained healthy, and the selling pressure feels more like short-term profit-taking than any kind of structural distribution. The question now is whether this compression breaks higher or if crypto needs a fresh catalyst to catch up with the rest of the risk-on party.