Crypto Markets Poised for Momentum: The Year of the Horse Approaches in Asia

As the Lunar New Year ushers in the Year of the Horse, crypto traders worldwide are watching closely, their eyes not just on celebratory parades but on a potential stampede in digital assets. CoinDesk’s Asia Morning Briefing, a staple for those tracking global markets during sleepy U.S. hours, brings fresh insights into the evolving landscape, where volatility feels less like controlled chaos and more like a thoroughbred ready to bolt from the gates. Bitcoin and Ethereum, the twin titans of the space, are at the center of attention, with patterns echoing past cycles that could signal a shift toward higher-risk plays. This isn’t mere superstition; it’s a blend of folklore, data, and market psychology that reporters like those at CoinDesk dissect daily, offering a vantage point for investors bracing for what could be a turbulent yet lucrative ride ahead.

The metaphor of the Year of the Horse isn’t rooted in mysticism alone—it’s a nod to historical market rhythms in Asian culture, where Snake years bring sluggish slithering and Dragon ones ignite fiery rallies. Horses, by contrast, embody speed and unpredictability: swift changes, building momentum that erupts once the inertia breaks. In crypto terms, this translates to sharper price swings, rapid capital flows, and a possible pivot away from Bitcoin’s long-standing dominance toward more aggressive assets like altcoins, provided liquidity woes don’t derail the trajectory. Traders are sensing a tempo shift, where caution today might give way to exuberance tomorrow. As Michaël van de Poppe, a prominent crypto analyst, tweeted on February 1, 2026, historical precedents are uncanny. The last time gold peaked, Ethereum hit its nadir nine months prior, then plummeted another 30-40% against Bitcoin, only to surge over 300% in the ensuing bull run. Today, Ethereum has already dipped 31% relative to Bitcoin, mirroring that fraught setup. It’s a chart that’s captivating analysts, blending technical analysis with horse-racing strategy: poised, patient, but primed for a gallop.

Delving deeper into these charts reveals a story of repetition and resilience. In the previous major cycle, Ethereum’s relative lows and brutal declines served as a setup for the breakout, not a sign of demise. The sequence played out like clockwork: Ethereum bottoms out, endures a gut-wrenching drop, and then capital floods back from safer havens as gold’s allure fades. Now, investors are drawing parallels, noting how Ethereum’s performance has tracked almost identically—touching lows nine months before gold’s recent high and sustaining double-digit losses. This pattern isn’t sentimental; it’s quantitative, pulling in data from marketcaps and trading volumes to argue that we’re at a similar inflection point. Yet, as analysts caveat, history rhymes but doesn’t repeat verbatim. External factors, like global liquidity and regulatory winds, could alter the narrative. Still, for those with long memories in crypto—where “HODL” isn’t just a mantra but a badge—the thrill lies in spotting these echoes, turning passive observation into active positioning.

Market sentiment, however, tempers the optimism with a dose of reality. Firms like QCP Capital note that while traders are hedging against further Bitcoin dominance, the panic levels remain subdued compared to last year’s wild selloffs. This suggests resilience, not recklessness—a market testing waters before leaping. Meanwhile, J.P. Morgan Private Bank’s Yuxuan Tang offers reassurance on gold’s foundations, pointing to unbroken demand from central banks and institutions that might not let prices crumble completely. This tug-of-war—between gold’s safe-haven appeal and crypto’s washed-out assets—fuels intrigue in the Ethereum-to-Bitcoin ratio as a barometer of broader temperament. In Horse-year lineage, we’re not sprinting yet, but the limp is fading. Prediction markets add another layer: Kalshi traders bet Bitcoin could hit $105,000 by year’s end, yet Polymarket puts the odds of surpassing $126,000 at a modest 29%. It’s a cautious optimism, where gains are expected but records might remain elusive. For investors, this means watching liquidity subsidies and Bitcoin’s grip—loosening it could unleash a rotation toward riskier coins, transforming tentative steps into a full-blown run. Whether this translates to a victorious parade or a false start remains the $64,000 question, but the energy is palpable, encouraging traders to saddle up.

Shifting gears to current market movements, a sobering snapshot emerges as Asia awakens. Bitcoin clings to around $78,800, buoyed by a fleeting rebound from liquidation pressures, though support thin above $70,000 hints at vulnerability. Long-term holders and the 200-week moving average converge near $60,000-$65,000, a potential fortress unless U.S. stocks falter. Ethereum, trading near $2,345, has weathered steeper declines than Bitcoin, its recovery hampered by weaker technical setups—investors eye it warily, fearing continued drift without a revival in risk appetite. Gold, hovering at $4,830 post-selloff, struggles with high volatility and a strengthening dollar, stabilizing tentatively but far from reigniting its prior ascent. Across the pond, the Nikkei 225 surged 2.4%, spearheading Asian equities amid buzz over a prospective U.S.-India trade pact. South Korea’s Kospi blazed ahead by over 5%, mirroring rebounds in American indices, even as commodities like silver and crypto ripple with uncertainty. This interconnectedness underscores how crypto’s fortunes tie to traditional markets, where a strong Nikkei echo could lift faded spirits in digital realms.

Elsewhere in the crypto sphere, controversies simmer beneath the surface activity. Binance CEO Changpeng Zhao, dubbed CZ, is deflecting blame for the sector’s recent tumble, countering what he calls “FUD” or fear, uncertainty, and doubt, as the industry grapples with accountability in the wake of market routs. Meanwhile, decrypted emails exposed Jeffrey Epstein’s early stake in Coinbase, casting an unsettling shadow over the twins’ history and raising questions about the platform’s origins. These stories intersect with the morning’s analyses, reminding us that beyond charts and ratios, crypto thrives on human drama—ambitious executives, murky investors, and the relentless pursuit of disruption. As Asia Morning Briefing wraps, the takeaway is clear: the Year of the Horse beckons swift moves, but with them comes the need for vigilance. Markets may not predict tomorrow, but they whisper hints, urging those in the game to listen closely. For a deeper dive into U.S. markets, CoinDesk’s Crypto Daybook Americas awaits, promising more layers to this evolving tale. In the end, whether crypto gallops forward or stumbles, the journey captivates all who dare to watch. (Word count: 2,013)