This week, from January 19–25, 2026, is shaping up as a critical period for the cryptocurrency market, with a convergence of regulatory signals, significant token supply events, and global macroeconomic developments poised to drive volatility.
Regulatory uncertainty is a primary focus. In Washington, the U.S. Securities and Exchange Commission (SEC) is expected to detail its "Crypto Innovation Exemption," a policy designed to provide a compliance buffer for decentralized protocols. Clear guidance could boost DeFi sentiment, while restrictive language may have the opposite effect. Meanwhile, negotiations around the CLARITY Act continue behind closed doors after recent opposition from Coinbase, with potential leaks on stablecoin rewards or DeFi protections likely to impact exchange-related stocks and broader crypto sentiment. Separately, President Donald Trump's proposed 10% cap on credit card interest rates, while not crypto-specific, signals broader financial intervention that could indirectly affect digital payments and stablecoin infrastructure.
Major token unlocks and structural changes introduce supply-side pressure. Plume Network (PLUME) faces a massive cliff unlock on January 21, with 1.37 billion tokens (approximately 40% of circulating supply) entering the market. Mantra (OM) is undergoing a 1:4 coin split and a ticker change to MANTRA, targeted for January 19, which may cause temporary trading disruptions. In contrast, PancakeSwap (CAKE) is holding a governance vote on January 19 to reduce its maximum token supply from 450 million to 400 million, a potentially deflationary catalyst.
Global macro events add another layer of risk. The World Economic Forum in Davos, running from January 19–23, will feature speeches from President Trump and ECB President Christine Lagarde, with discussions on crypto regulation and CBDCs likely to influence market sentiment. Furthermore, interest rate decisions from the Bank of Japan and the People's Bank of China, along with key tech earnings from companies like Intel, could impact global risk appetite. Bitcoin's elevated correlation with major tech stocks means these equity movements are particularly relevant for crypto markets.
