The 2026 crypto landscape appears set to extend beyond a simple rebound, potentially entering a final expansion phase led by Bitcoin. Capital seems poised to flow into select altcoins as investors reallocate across the sector regardless of whether Bitcoin makes a new high. In a January 6 video, Deutsche Bank researchers described the market as having upside possibilities, but with significantly higher volatility and no expectation of a one-way rally.
Support for this view comes from renewed Bitcoin ETF inflows and ongoing short-squeeze dynamics, which could shift market sentiment quickly. Deutsche Bank notes that Bitcoin’s price action does not need to print a new top to spur a broader upsurge in altcoins, as the ecosystem often moves in a cyclical fashion with previously neglected tokens rebounding first.
However, the analyst cautions against interpreting 2026 as an outright bull market. A favorable macro backdrop may persist, but greater volatility will elevate the risk of chasing purchases and letting emotions drive decisions. As the cycle matures, markets may oscillate between overheating and sharp drawdowns, making prudent position management essential and highlighting that opportunities exist, but survival strategies may matter more than performance.
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