Wall Street’s love affair with cryptocurrency is on the rocks, at least for now.

While 2024 and 2025 were defined by the launch of spot ETFs and the relentless climb of Bitcoin (BTCUSD) towards $100,000, January 2026 has ushered in a different atmosphere. Bitcoin has spent the month struggling to regain the six-figure mark, sliding towards $82,000 on Friday afternoon.

Meanwhile, Ethereum (ETHUSD) had stabilized in a choppy, sideways range, then broke out in late January. The romance break isn’t necessarily permanent, but Wall Street’s affection for digital currencies is being tested.

To the extent that Bitcoin represents cryptography, which is largely true as a whole, this chart is troubling. It shows that the iShares Bitcoin Trust (IBIT) ETF is holding on for dear life, with a break below $43 threatening to further reverse the 2025 rally. We’ve seen this before.

One of the reasons for the crypto buzz fading had been the spectacular performance of “old school” assets. Gold (GCG26) and silver (SIH26) are the new celebrities in the market. Until Friday, that is. It makes me think that Bitcoin and other cryptos are just part of a big “risky” trade. One that could lead to margin calls and speculation tapering as 2026 continues.

There is also a sense that the early excitement of the ETF era has died down.

When IBIT and other crypto ETFs were first launched, inflows broke records. Now, we’re seeing more mature behavior, which might seem a bit boring to those used to the dopamine rush of a crypto bull run. Exits have become more frequent, especially during weeks of macroeconomic uncertainty or technology-driven trade sell-offs. The market is no longer just chasing the story of institutional adoption; now it’s examining real utility and macro headwinds like tariff threats and changing Federal Reserve policies.

If you think the excitement is really gone, or at least that the market needs a major reset, there are direct ways to take advantage of the downside. You don’t have to just sit on your hands while your IBIT or ETHA shares take a hit.

Short-term tactical tools like the ProShares Short Bitcoin Strategy ETF (BITI) are designed to provide the inverse of Bitcoin’s daily performance. If Bitcoin falls 5% in a day, ideally BITI will rise by about the same amount.

And if you are someone who wants to buy the dip, the IBIT can be collared. Here’s an example that takes advantage of high volatility.

That’s 36% up and just 8% down, over a period of just under 12 months. If you believe that the most recent phase of the IBIT collapse will be quickly reversed, this move will cover your cost on its own.

Crypto remains a very popular asset class. And one of high volatility. Recent events here and in precious metals should remind all traders and investors to follow one simple rule: First, know yourself. Then decide how to manage your risk in a way that puts you in control of your financial destiny.

Rob Isbitts is a semi-retired fiduciary investment adviser and fund manager. Find your investment research at ETFYourself.com. To copy Rob’s portfolios, see the new PiTrade application.

As of the date of publication, Rob Isbitts had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com