January 2026 Market Update: Gold Gains, Crypto Consolidates

Coin Metrics State of the Network is an unbiased, weekly view of the crypto market informed by our own network (on-chain) and market data.

Key Takeaways:

• Gold crossed $5,000/oz for the first time as geopolitical tensions drove a flight to traditional safe havens. BTC ended January roughly flat despite a mid-month recovery to $97K.
• Strategy accumulated 37,215 BTC (~$3.5B) in January, but late-month ETF outflows and a risk-off backdrop added pressure, leaving BTC unable to hold highs.
• Beneath the surface, structural progress continued: Ethereum staking hit all-time highs (30%+ of supply), NYSE announced a tokenization platform, and BitGo went public at $2.6B.

Introduction

In this issue of State of the Network, we provide an overview of crypto market dynamics and onchain developments over the month of January 2026.

Market Performance Snapshot

January kicked off on a strong note with the total digital asset market cap reaching ~$3.4T as BTC rallied to $97K. However, momentum faded mid-month as geopolitical developments, including the pursuit of Greenland and renewed tariff uncertainty with European nations weighed on risk assets, catalyzing flows into gold and precious metals.

Concerns around bitcoin’s quantum vulnerabilities and stalling of the market structure legislation added pressure to weakened sentiment, while gold extended its astounding run crossing $5,000/oz for the first time in its history.

Source: Coin Metrics Prices

Performance among tokens in the top 100 by market cap was widely dispersed, suggesting the absence of any dominant narratives or themes. Among Coin Metrics’ datonomy sectors, the Smart Contract Platform datonomy sector ended the month up by roughly 9.8%, followed by Value Transfer Coins (+4%).

MicroStrategy Momentum & ETF Outflows

Strategy (MSTR) accumulated ~37,215 BTC in January, including an aggressive buy of 22,305 BTC valued at approximately $2.13B. This marks their largest single purchase since July 2025 (in dollar terms), pushing total holdings beyond 700,000 BTC. This tranche was funded entirely through At‑The‑Market (ATM) equity offerings rather than convertible debt, as part of their ongoing pursuit to increase BTC per share.

BTC pushed toward $97-98K mid-month as MicroStrategy and ETF flows took turns providing support. However, in the back half of January a risk‑off macro backdrop and over $1.2B in weekly net ETF outflows diluted much of Strategy’s impact on marginal demand. Notably, the two sources displayed contrasting behavior: ETF flows were momentum-sensitive, while MSTR continued its strategic accumulation in a price-agnostic manner.

Source: Coin Metrics Network Data Pro

Check out Recent Talos Analysis: Does Timing Matter When Trading BTC?

Great Gold Rush

The precious metal crossed $5,000/oz for the first time, extending a rally that has meaningfully outpaced bitcoin over the past few months. While BTC ended January roughly flat, gold gained over 18%, bringing the BTC/Gold ratio to the lower end of its multi year range.

Source: Coin Metrics Prices

Several factors are contributing to gold’s strength:

• Geopolitical uncertainty: The US-NATO friction over Greenland, renewed tariff threats against the EU and Canada and doubts around Federal Reserve independence have unsettled markets. This has prompted a risk‑off rotation into traditional safe havens, precious metals, and select emerging markets.
• Central bank accumulation: Global central banks have continued adding gold to reserves, motivated by concerns over rising US debt levels and longer‑term de‑dollarization trends.
• Low BTC-gold correlation: Despite the “digital gold” narrative, bitcoin’s rolling correlation to gold remains historically low, underscoring how BTC has not participated in gold’s latest safe‑haven rally.

Source: Coin Metrics Network Data Pro

On‑chain demand has echoed this move: the combined market cap of tokenized gold products like Paxos’ PAXG and Tether’s XAUT recently climbed above $4.6B. In its Q4 XAUT attestation, Tether also reported they bought 27 metric tons of Gold, exceeding most individual central banks.

Gold has absorbed most of the safe-haven demand, while BTC continues to trade as a liquidity driven risk asset. The key question for the months ahead is whether some of this safe-haven bid eventually rotates back into BTC as macro conditions stabilize and liquidity expands, or if gold continues to lead in this regime.

Market Liquidity

Orderbook depth across top exchanges has partially recovered from the October 10th liquidations but remains uneven. BTC spot depth within 2% of mid-price rebounded from November lows toward $40M before slipping back into the $20–25M range in January. Shallow liquidity continues to leave the market vulnerable to sharp moves and liquidation cascades.

Source: Coin Metrics Market Data Pro

Other Notable Developments

• Ethereum Staking ATH: Ethereum saw an uptick in staking activity, with ETH staked on the consensus layer reaching over 36.4M. This has pushed Ethereum’s staking ratio (% of supply staked) to over 30%, reducing liquid float. BitMine Immersion Technologies, the largest Ethereum digital asset treasury holding 4.24M Ether (3.5% of supply) has also disclosed it staked 2,009,267 ETH, ($5.7B), representing nearly half of its total holdings.

Source: Coin Metrics Network Data Pro

• NYSE Tokenization Platform: The New York Stock Exchange announced plans for a tokenized securities platform offering blockchain‑native US stocks and ETFs with 24/7 trading, near‑instant settlement, and stablecoin‑based funding. These tokenized shares will remain fungible with listings and preserve core economic rights.

• BitGo IPO: The crypto IPO market showed signs of life as BitGo went public on the NYSE, debuting at a valuation of about $2.6B. Shares opened with a double‑digit intraday rise before paring gains, but its successful launch indicates public‑market appetite for regulated crypto infrastructure businesses.

• Pendle Tokenomics Shift: Pendle, a DeFi protocol for yield tokenization, shifted from its vePENDLE model to staked PENDLE, simplifying participation while preserving core incentives around protocol revenue and governance. The change echoes broader moves across protocols like Uniswap and Aave over fee switches and value accrual, underscoring a sector‑wide push to make tokenholder economics more transparent and accessible.
• CLARITY Act Stalled: Progress on US digital asset market‑structure legislation, has slowed after a planned Senate markup was pushed back amid disagreements over how to treat stablecoin rewards. The delay keeps key questions around rules and oversight unsettled. Find more in Talos’ latest Regulatory Roundup.

Conclusion

January 2026 opened with BTC pushing toward new highs, but macro and geopolitical developments firmly took the driver’s seat. Strategy’s early-month BTC buying spree proved insufficient to offset late-month outflows and thinning liquidity, leaving BTC roughly flat despite strong structural tailwinds. At the same time, Ethereum’s staking growth, NYSE’s tokenization plans, BitGo’s IPO, and evolving DeFi tokenomics underscore that market infrastructure continues to mature beneath the surface, setting the stage for expansion once macro conditions stabilize.

^{Disclaimer: The information herein is provided for informational purposes only. Talos Trading, LLC and its affiliates (“Talos”) does not give any representations or warranties in relation to the accuracy, validity, or completeness of the information of this material, including without limitation the factual information obtained from publicly available sources considered by Talos to be reliable at the time. Talos accepts no liability for any consequences of using the information contained in this material. Any opinions or estimates expressed herein reflect a judgment made by the author(s) as of the date of publication and are subject to change without notice. Neither this material nor any copy thereof may be taken, reproduced, or redistributed, directly or indirectly, without Talos’s prior written permission. Any views or opinions expressed are those of the authors and do not necessarily reflect the views of Talos. This communication does not constitute an offer to buy or sell, or a promotion or recommendation of, any digital asset, security, derivative, commodity, financial instrument, or product or trading strategy. This document and information are not intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.}

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