The beginnings of 2026 have introduced a renewed sense of optimism in the crypto market, with significant rebounds in the prices of major assets following last year’s extensive correction. Recent insights indicate that retail traders are becoming increasingly hopeful as news related to ETFs and overarching market narratives impact crypto valuations.

Data from Santiment reveals a notable upswing in retail trader confidence, despite recent price actions stabilizing and Bitcoin (BTC) testing critical psychological thresholds. The resurgence isn’t limited to high-cap cryptocurrencies; several altcoins and meme currencies have also reported impressive gains.

Growing Retail FOMO

Discussions on social media platforms like X, Reddit, and Telegram have shifted positively after months of negativity stemming from Bitcoin’s peak in October 2025. Bitcoin’s movement remains pivotal to the market, shaped largely by macroeconomic factors and traditional market trends. Headlines about ETF movements have played a crucial part in this narrative, especially after significant one-day net outflows from US spot Bitcoin ETFs led by prominent firms like BlackRock and Fidelity.

This pullback coincided with traders reducing risk ahead of critical US economic reports and speculation surrounding potential interest rate cuts, reinforcing the notion that Bitcoin is increasingly behaving like a macro-sensitive asset.

Ethereum’s sentiment is more mixed, as noted by Santiment. Conversations surrounding the leading altcoin have shifted from price fluctuations to staking developments, with particular focus on staking rewards related to regulated investment products. Although there has been a marked interest in staking, the sentiment remains divided, indicating a lack of clear directional prompts for ETH at the start of 2026.

Several standout performers are evident, as retail sentiment continues to be uneven and highly responsive to immediate catalysts. For example, Ripple (XRP) registered a substantial 14% weekly increase, aligning with heightened attention around XRP’s January escrow unlock, which released 1 billion tokens, a significant portion of which is expected to remain locked. This event, together with robust early-year momentum, spurred increased retail engagement.

Additionally, Solana (SOL) experienced a notable uptick in both sentiment and pricing, primarily driven by institutional news, including a report that Morgan Stanley submitted an application to the US Securities and Exchange Commission (SEC) for ETFs connected to Bitcoin and Solana.

Meme Coin Resurgence

Meme coins are also back in the spotlight, as the original meme coin, Dogecoin (DOGE), displayed double-digit weekly gains, partly propelled by the impressive performance of the 21Shares 2x Long Dogecoin ETF, which saw gains of around 38-39% in the early days of 2026. This ETF’s success has sparked renewed interest within the meme coin sphere.

Moreover, numerous meme coins are witnessing synchronized whale purchases and escalating social excitement this year.