Market comparison at the beginning of the month: Wall Street traditional risk assets hit new highs, while Bitcoin hovers around $90,000

Source: BlockMedia Original Title: Wall Street Rally and Bitcoin Taking a Different Path… “Changes After Tax-Related Trading Ends” Original Link:

2026 First Week Performance Report: Wall Street vs. Digital Assets

Wall Street’s traditional risk assets are sprinting into the new year, contrasting with the digital asset market leader Bitcoin, which has stalled around the $90,000 mark.

The performance in the first week of the new year can be summarized in one sentence: Traditional risk assets dominate. Following various policy benefits from the Trump administration, a hot rebound rally has been left behind.

Wall Street risk assets sprint into the new year

In the first week of 2026, the US stock market surged amid expectations of economic vitality. The S&P 500 index hit a record high, rising 1.6% for the week. The Russell 2000 index, considered a barometer of risk assets mainly composed of small-cap stocks, soared by 4.6%. Not only AI-related large-cap stocks, but also energy, defense, and small- to mid-cap stocks experienced rotation buying.

Investors not only bought high-quality stocks but also actively poured into high-risk assets like meme stocks(Meme stocks) and junk bonds(Junk bonds). The meme stock ETF nearly gained 15% this week, and the spread on junk bonds narrowed by 10 basis points(bp), reflecting strong buying interest from investors.

Behind this enthusiasm are signals of overall economic improvement, such as productivity gains, steady employment data, increased automobile demand, and the support policies for the housing market from the Trump administration.

Bitcoin hesitates at $95,000

The digital asset market also participated in this rebound, but compared to traditional risk assets, it shows slightly less momentum.

Bitcoin recovered some of its losses over the past year, regaining the $90,000 level, but then lost clear direction and entered stagnation. Bitcoin initially rebounded with the overall market at the start of the new year, reaching around $94,800 at one point, but ultimately failed to break through the psychological resistance of $95,000.

As the first trading week of 2026 neared its end, Bitcoin was down about 2% compared to a year ago.

Reasons for stagnation and rebound differences

The differences in the market’s bright and dark sides stem from varying sensitivities to policy uncertainty. Bitcoin investors remain cautious about major policy decisions from Washington, such as tariffs, the reshuffle of Federal Reserve leadership, and legislation related to cryptocurrencies.

Especially as economic data exceeds expectations, reducing the anticipation of further Fed rate cuts, this has become a factor limiting Bitcoin’s upward momentum.

In contrast, Wall Street stock investors react less strongly to policy uncertainty and more positively to actual economic data and fiscal support measures, continuing to actively buy risk assets.

Digital asset market expert opinions

B2C2 Strategy and Trading Head Jake Ostrovskis believes that the current Bitcoin price trend is a “typical ‘post-rally consolidation’ phase after a strong rise in early 2026.”

Once it breaks through the psychological resistance of $95,000, systemic buying will flood in, and the price increase will form a self-reinforcing “reflexive(reflexive)” trend. He expects “the road to $100,000 will open very soon.”

James Butterfill, Head of Research at Coinshares, analyzes that “macroeconomic data exceeding expectations has decreased the probability of rate cuts in March, putting short-term pressure on prices.” Nevertheless, he maintains an optimistic outlook that Bitcoin could reach about $200,000 by the end of the year.

Senior Analyst Brian Vieten of Sibert Financial states that “tax-loss harvesting(tax-loss harvesting) and concerns about MSCI index exclusions dissipating have basically exhausted selling pressure, and the current stagnation near $90,000 is a constructive consolidation process.”

( Wall Street and macroeconomic expert opinions

Julie Biel, Portfolio Manager at Kane Anderson Rudnick, points out that “the economy has been flooded with too much ‘candy’)stimulus policies and favorable factors###,” making the current stock market environment very favorable, with limited effectiveness of overly defensive investment strategies.

Nathan Thooft, Chief Investment Officer at Manulife Investment Management, states that “loose monetary policy and strong fiscal support provide a favorable backdrop for the stock market.” He expects that due to lagging effects of monetary stimulus and tax refunds, economic activity will further improve after Q2 2026.

Sameer Samana, Chief Strategist at Wells Fargo Investment Institute, believes that “benefiting from good economic data, it is reasonable for the market to expand gains across multiple sectors.” However, he remains skeptical about overly broad investment into small-cap stocks with very low market caps.

Priya Misra, Portfolio Manager at JP Morgan Asset Management, cautiously notes that “with employment trends still weak, saying the economy is ‘accelerating again’ requires caution.” But she believes that GDP growth at 2-3% and stable unemployment rates are enough to keep the market optimistic.

Michael O’Rourke, Chief Market Strategist at Jones Trading, warns that “current optimism is somewhat close to ‘wishful thinking’.” He points out phenomena such as stock prices soaring immediately after meetings between entrepreneurs and the president, expressing concerns about market overheating.