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Weaker cryptos imply caution on risk assets

ADMIN || 26th January 2026

A downtrend in cryptocurrencies bodes ill for risk assets as trading gets underway this week.

The positive correlation between the Bloomberg Galaxy Crypto Index and the MSCI World gauge is strengthening, just as Bitcoin threatens to set a one-month low and ether hits its weakest level in more than five weeks. The token is down more than 2% on Sunday.

This week’s upcoming catalysts namely the Federal Reserve meeting and several Magnificent Seven earnings along with the weekend developments of intervention speculation in Japan and a heightened risk of a shutdown in the US are bound to keep traders cautious to start the week. And in such an environment, crypto will probably bear the brunt of the blow from a pullback in risk appetite.

 

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