On January 14, 2026, analysis of crypto markets pointed to a structural shift beneath recent price swings, with derivatives data showing over $700 million in short liquidations within 24 hours and leverage rebuilding more cautiously. At the same time, stablecoin market share briefly moved above 10% and on-chain balances stayed high, suggesting capital is rotating and waiting on the sidelines rather than exiting the crypto ecosystem.

On January 14, 2026, over $718 million in crypto short positions were liquidated within 24 hours, marking the largest short wipeout since the October market crash. Bitcoin shorts made up about $402 million of the total and Ethereum around $255 million, as both assets broke through key resistance levels. The event forced closures across major derivatives exchanges and highlighted how crowded bearish positioning and leverage had built up before the sharp move higher.

On January 14, 2026, Ethereum traded near $3,290 with a market cap around $397 billion, approaching the $3,300 level and drawing renewed attention to its role in a potential altcoin rotation. Despite a stabilizing ETH/BTC ratio and more than 36 million ETH staked, market signals still point to a transitional phase rather than a confirmed altseason. Analysts note that a true rotation would require sustained ETH outperformance over Bitcoin, stronger liquidity, and broader participation across mid and small-cap altcoins.