Turning Point in January 2026: Major Shifts in U.S. Politics and Economics Drive Turmoil in Cryptocurrency and Financial Markets

In January 2026, the global financial markets experienced several significant shifts. From the New York Stock Exchange’s 24-hour trading platform concept, to changes in Federal Reserve Chair appointments, and the expansion of the digital asset ecosystem, the reorganization of power and institutions across various sectors has begun to interact in complex ways. As markets mature, how traditional power structures will be reshaped remains the most anticipated development of 2026.

NYSE’s 24-Hour Trading and Innovation in the U.S. Financial System

In the U.S. markets, plans have emerged for the New York Stock Exchange to launch a 24/7 trading service. This would introduce a new platform allowing trading of U.S.-listed stocks and ETFs without time restrictions, moving beyond the traditional trading hours. The goal is to adapt to a global 24-hour market and improve convenience for market participants.

At the same time, it was revealed that the Louisiana State Employees’ Retirement System, with approximately $15.6 billion in assets, holds 17,900 shares of Strategy (MSTR), a Bitcoin-related company. The holdings are valued at about $3.2 million, indicating steady institutional investment in crypto-related firms.

Federal Reserve Chair Appointment: Power Reallocation and Market Impact

The upcoming Federal Reserve Chair election in late January has become a major variable. Following Kevin Hasset’s resignation declaration, market expectations rapidly shifted toward Kevin Wash, a former Federal Reserve Board member. According to prediction markets, Wash’s chances of appointment rose to 60%, significantly surpassing Hasset’s approximately 15-16%.

This personnel change is not just an internal organizational shift but a critical turning point that will influence the overall direction of U.S. monetary policy. The International Monetary Fund revised its 2026 global economic growth forecast upward from 3.1% to 3.3%, driven by a surge in AI-related investments in North America and Asia. The selection of the Fed Chair directly impacts how these investments are supported and how crypto markets are regulated.

Fed Chair Powell’s term ends on May 15, and the Trump administration has announced plans to name a successor within this month. Market watchers are closely monitoring how this decision will influence Bitcoin and other digital asset prices.

New Correlations Between Traditional and Digital Assets: Gold and Silver Reach New Highs

Since mid-January, physical gold and silver have repeatedly hit historic highs. Silver surged to a record $93.69 per ounce, rising over 4% intraday. Gold also increased by 2%, reaching $4,690 per ounce, setting new records.

This movement signals important market cues. The rise in gold and silver indicates that their role as safe havens during crises remains healthy. However, as economist Peter Schiff points out, whether Bitcoin can keep pace with this rise could determine its status as digital gold. Schiff warns that if Bitcoin fails to catch up, its credibility as digital gold may diminish, potentially leading to a significant correction.

In fact, the correlation between Bitcoin and gold is increasingly influencing investment decision-making.

GENIUS Token and Ecosystem Expansion of Emerging Projects

YZi Labs announced in mid-January the airdrop and white paper for Genius, a perpetual futures DEX platform. Notably, the GENIUS token is scheduled to be created by April 12, 2026.

The airdrop distribution will increase by 50%, and the value of each point will also rise by 50%. Between now and April 12, 2026, 10 million GP will be distributed weekly. GP is retroactively allocated based solely on on-chain trading volume.

Simultaneously, Magic Eden announced that starting February 1, 15% of its revenue will be allocated to the ME token ecosystem. Half of this revenue will be used to buy back ME tokens on the open market, while the remaining 50% will be distributed to stakers in USDC based on collateral weight. Upgrading from a “transaction fee-only” model to a comprehensive revenue-sharing system covering the entire ecosystem reflects the industry’s evolving token value proposition.

Ethereum Trading Activity and Market Vitality

Since mid-January, Ethereum’s network activity has surged. The seven-day moving average of transaction volume approached 2.5 million, hitting a historic high—almost double that of the same period last year.

Gas fees have also dropped significantly, averaging $0.15, with swap transactions on Sundays costing around $0.04—at the lowest levels in network history. This combination of lower costs and increased transaction volume suggests that Ethereum’s ecosystem is rapidly becoming more user-friendly.

DAO Design: Ideals and Realities – Vitalik’s Power Structure Theory

In January, Vitalik Buterin commented that current implementations of DAOs (Decentralized Autonomous Organizations) in the crypto industry have deviated significantly from their original vision. Initially envisioned as models of decentralized governance, many DAOs today have been simplified into “treasuries controlled by token voting,” he said.

Vitalik emphasizes that for DAOs to truly function, governance mechanisms, privacy tech, and communication layers must serve as core components. AI should not replace human judgment but act as a tool to expand and assist human intent.

He also pointed out that different types of problems require different governance structures. Scenarios emphasizing consensus and robustness need broad participation and resilience to manipulation, while situations requiring quick decisions should allow leadership within a decentralized framework. This dilemma of dispersing versus concentrating power is a fundamental challenge organizations face, and addressing it is crucial for governance in the digital age.

Digital Yuan and Smart Contracts: Building Regulatory Frameworks

According to Caixin, the development of smart contracts for the Digital Yuan will adopt a “restricted Turing completeness” approach, with strict limitations on template scripts. This differs from fully Turing-complete languages like Solidity used in Ethereum.

This design prioritizes security and risk management, though technically, fully Turing-complete languages could be supported. The key challenge lies in designing standard connection and audit mechanisms acceptable to financial systems. How each country balances regulation and technology in building digital currencies will significantly influence the future development of the digital asset market.

Crypto Card Payments and Market Maturity

Artemis research reports that crypto card payments reached an annualized transaction volume of $18 billion, approaching the $19 billion in P2P stablecoin remittances.

Visa dominates with over 90% of the transaction volume. However, analysts believe that in the short term, crypto payments will not fully replace traditional card networks due to entrenched interests and complex regulations. Gradual integration is expected.

Security and Market Vigilance: Major Theft and Regulatory Tightening

According to CertiK, hackers stole $282 million, with about $63 million moved via cross-chain to new addresses. This incident is linked to a theft involving social engineering attacks on hardware wallets, resulting in the loss of $282 million worth of Litecoin (LTC) and Bitcoin (BTC).

Meanwhile, South Korean authorities have dismantled an international illegal money exchange network, transferring three suspects to prosecutors for allegedly laundering approximately $101.7 million (1.489 billion won) through crypto transactions. The network operated from September 2021 to June 2025, disguising transfers as legitimate expenses like plastic surgery and tuition.

Security and regulatory tightening are inevitable as markets mature.

Market Popularity and Tech Trends: Rise of Diverse Ecosystems

As of January 20, GMGN data shows that on the ETH platform, SHIB, LINK, PEPE, UNI, and ONDO are among the most popular tokens. On Solana, tokens related to Trump (TRUMP), PENGU, Fartcoin, ME, and PUMP are trending. On Base, PEPE, BASED, BSC, SKYA, and B3 lead the rankings.

The proliferation of these diverse tokens and ecosystem growth indicates that the crypto market is developing across multiple competitive platforms rather than being dominated by a single blockchain or vision.

Outlook for 2026: Integration of Power, Institutions, and Technology

Market trends in January suggest that 2026 will be a year of deep integration among global finance, politics, economics, and technology. The NYSE’s 24-hour trading, changes in Fed leadership, development of the Digital Yuan, and evolution of DAO governance are not isolated events but part of a broader process of fundamental reorganization of power and market structures.

For market participants, understanding not only the price movements of individual assets like Bitcoin and gold/silver but also the sweeping institutional and political shifts will be crucial. The crypto and financial markets of 2026 are set to be a grand experiment in how technology and traditional power structures merge to form new balances.