Abu Dhabi, United Arab Emirates โ January 19, 2026: Bitcoin has retreated by approximately 6% after reaching highs of nearly USD 98,000 earlier last week, as uncertainty surrounding US crypto regulation and renewed trade tensions weighed on broader market sentiment.
The pullback follows delays in the approval of the US crypto market structure bill, known as the CLARITY Act, alongside resurfacing tariff concerns between the United States and the European Union, which have unsettled risk appetite across global markets.
Simon Peters, Crypto Analyst at eToro
Commenting on the developments, Simon Peters, Crypto Analyst at eToro, said:ย โThe CLARITY Act, which aims to establish a clear regulatory framework for digital assets in the US, has recently faced setbacks as several key players within the crypto industry have withdrawn their support. The main point of contention centres on whether stablecoins should be permitted to offer yield.โ
He added that traditional banks have raised concerns that allowing yield-bearing stablecoins could divert deposits away from the banking system, potentially posing risks to financial stability. In contrast, parts of the crypto industry argue that restrictions on stablecoin yields are an attempt by traditional finance to suppress competition.
โAs a result,โ Peters noted, โthe future of the bill has become increasingly uncertain, with some analysts suggesting it could be withdrawn entirely if consensus cannot be reached.โ
Despite the recent price decline, investor interest in digital assets remains evident. US spot bitcoin exchange-traded funds recorded their strongest weekly inflows since October, indicating continued institutional demand.
Looking ahead, market participants will be closely monitoring key US macroeconomic data releases this week, including Personal Consumption Expenditures (PCE) inflation data โ the Federal Reserveโs preferred inflation gauge โ and US GDP figures due on Thursday.
โA softer-than-expected inflation or growth print could reignite expectations for earlier interest rate cuts by the Federal Reserve,โ Peters said. โSuch a scenario may provide renewed upside momentum for cryptoasset prices.โ
eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So weโve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.
Disclaimers:
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro is a group of companies that are authorised and regulated in their respective jurisdictions. The regulatory authorities overseeing eToro include:
The Financial Conduct Authority (FCA) in the UK
The Cyprus Securities and Exchange Commission (CySEC) in Cyprus
The Australian Securities and Investments Commission (ASIC) in Australia
The Financial Services Authority (FSA) in the Seychelles
The Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE
The Monetary Authority of Singapore (MAS) in Singapore
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipientโs investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.
Regulation and License Numbers
Middle East
eToro (ME) Limited, is licensed and regulated by the Abu Dhabi Global Market (โADGMโ)โs Financial Services Regulatory Authority (โFSRAโ) as an Authorised Person to conduct the Regulated Activities of (a) Dealing in Investments as Principal (Matched), (b) Arranging Deals in Investments, (c) Providing Custody, (d) Arranging Custody and (e) Managing Assets (under Financial Services Permission Number 220073) under the Financial Services and Market Regulations 2015 (โFSMRโ). Registered Office and its principal place of business: Office 26 and 27, 25th floor, Al Sila Tower, ADGM Square, Al Maryah Island, Abu Dhabi, United Arab Emirates.
Crypto Investing Risk Warning Crypto assets are highly volatile. Your capital is at risk. Donโt invest unless youโre prepared to lose all the money you invest.ย Read the full disclaimer
Affiliate Disclosure This article may contain affiliate links. See ourย Affiliate Disclosureย for more information.
