Altcoins Surge as Dollar Weakens, Bitcoin Holds Steady
By John Nada·Jan 28, 2026·2 min read
Altcoins surged as the Dollar Index fell to a four-year low, while Bitcoin remained steady. HYPE and PIPPIN led the market gains.
Altcoins surged sharply as the Dollar Index hit a four-year low, while Bitcoin held steady. According to CoinDesk, Bitcoin remained near $89,200 and Ether topped $3,000, buoyed by a significant drop in the U.S. dollar index (DXY). The altcoin market saw impressive gains, particularly with Hyperliquid's HYPE up 25% and Solana's JTO extending a remarkable 31% rally over three days. Speculative tokens led the charge, with Solana-based memecoin PIPPIN soaring 64% as the altcoin-heavy CoinDesk 80 index outperformed its Bitcoin-dominant counterpart.
The Dollar Index fell below a crucial trendline, a move that impacts the crypto market as most assets are traded against the U.S. dollar. The report noted that dollar strength or weakness directly influences cryptocurrency values, evidenced during the previous bear market when a stronger dollar correlated with a substantial drop in Bitcoin's value.
In the past 24 hours, $230 million in leveraged bullish crypto futures were liquidated, highlighting ongoing volatility in the market. Despite this, Bitcoin's and Ether's implied volatility indices suggest traders do not anticipate significant turbulence ahead of the Federal Reserve's interest-rate decision. Open interest in futures linked to HYPE token surged over 20%, reflecting its price gains, while open interest in BTC, ETH, XRP, and BNB rose by 2%-4%. Notably, annualized funding rates for major cryptocurrencies remain positive, signaling bullish positioning.
On the trading front, PIPPIN emerged as the standout performer, not just in gains but also as the most bought token by 'smart money' investors, according to Stalkchain. Meanwhile, decentralized exchange tokens JUP and ASTER also saw upward movements, with JUP increasing by 10.9% and ASTER rising by 5.7%.
Overall, CoinDesk indexes indicate a strong altcoin performance: the CoinDesk 20 index rose by 2.47% in the past 24 hours, while the CoinDesk 80 saw a 3.7% gain. The prevailing bullish sentiment in the altcoin sector comes as Bitcoin remains within a tight trading range, a scenario that historically leads to capital being rotated into more speculative assets until Bitcoin makes a decisive move.