Crypto under pressure
Global cryptocurrency markets are facing renewed stress at the start of 2026. Bitcoin and Ethereum, the two largest digital assets, have seen steep price declines, raising concerns about the near-term outlook for the sector. Bitcoin fell by nearly 5% in recent trading to around $78,800, slipping below the key $80,000 level. Ethereum dropped even more sharply, falling over 8% to about $2,400. These moves extend a broader trend seen over the past year, where cryptocurrencies have lagged behind strong gains in equity markets and gold. The latest sell-off came after Bitcoin briefly touched its lowest level since late November. At the same time, the US dollar strengthened, adding pressure on risk assets across global markets.
US monetary policy
A major factor behind the decline is growing concern over US monetary policy. Investor sentiment turned cautious after Kevin Warsh was selected as the next Chair of the Federal Reserve. Warsh has repeatedly argued for a smaller central bank balance sheet and tighter control over liquidity. Cryptocurrencies have often benefited from easy money policies, when central banks pump cash into financial systems. During such periods, investors are more willing to take risks, which supports assets like crypto. The prospect of reduced liquidity has therefore unsettled markets. Economists say expectations of tighter policy can trigger sharp price moves. When liquidity falls, speculative assets tend to react quickly. Recent losses have reminded investors that cryptocurrencies remain highly sensitive to policy signals and global financial conditions.
DeepSnitch AI
Despite the fall in major cryptocurrencies, interest in the sector has not disappeared. Instead, investor focus is shifting toward smaller and newer crypto projects that claim to offer real-world use cases. One such project attracting attention is DeepSnitch AI, an early-stage cryptocurrency linked to AI tools. Supporters point to its presale performance, rising staking levels, and limited supply in circulation. These features have made it popular among investors looking for high-growth opportunities in 2026. However, analysts warn that early-stage tokens carry higher risks. Prices can be volatile, and long-term success depends on actual adoption and delivery of promised technology.
