Russell 2000 January record boosts hopes for an altcoin rebound

Beincrypto reports the Russell 2000 reached a new all-time high in January, a move seen as signaling risk-on sentiment and reviving optimism for an altcoin recovery.

Bull Theory reported the index was up 7% in the first 15 days of 2026 and had added nearly $220 billion in market value, and Hedgeye analysts said the Russell 2000 outperformed the S&P 500 for nine consecutive days — the longest such streak since 2017. A two-year comparison of the index with crypto market capitalization shows local highs and lows closely matched, a pattern some investors interpret as bullish for altcoins.

Data provider Alphractal shows Buy/Sell (Long/Short) ratios above 1 across most altcoins in January, which it views as long positions dominating the market, and noted that "as market cap decreases, long bias increases," a setup that can precede volatility and long-side pressure. The report also highlights that many altcoins have already fallen 80%–90%, reducing incentives for underwater holders to sell and attracting well-capitalized buyers.

Outcomes are likely to vary by token: analyst CW, citing CryptoQuant and Binance netflow data, said some coins — ENJ, BTC, FET, SLP, ZRX, AMP, DODO and LINK — saw outflows, while AXS, ANKR, MATIC, JASMY and CHZ saw inflows. Altcoins that continue to leave exchanges tend to show stronger upside potential, whereas tokens being sent to exchanges for liquidity may face selling pressure.

Key Topics

Crypto, Altcoins, Alphractal, Cryptoquant, Binance