Internet Computer Climbs Back to $3 as Short-Term Momentum Improves

The Internet Computer price climbed back to $3 as of January 2026, driven by improved short-term momentum in the crypto market. This recovery follows a period of volatility and uncertainty, particularly in the wake of global regulatory shifts and evolving investor sentiment. Analysts are monitoring whether the recent gains are a sign of broader market strength or a temporary rebound.

Improved momentum has been supported by regulatory clarity in the United States, where the House passed the Digital Asset Market Clarity Act in July 2025. The legislation helped to define oversight responsibilities between the SEC and CFTC, reducing uncertainty for market participants. This clarity, combined with changes in leadership at the SEC, has created a more stable environment for digital assets.

The U.S. regulatory environment has also seen the introduction of a federal "Crypto Czar" under President Trump's Executive Order 14178, which coordinates crypto policy across federal agencies. This has contributed to a more structured and predictable market, which has bolstered investor confidence in stablecoins and ETFs. According to market analysis, these developments are creating favorable conditions for digital assets.

What Drives Short-Term Momentum in the Crypto Market?

Short-term momentum in the crypto market is often influenced by macroeconomic factors, investor sentiment, and regulatory developments. In 2026, the adoption of compliant stablecoins has played a significant role in increasing the volume of on-chain transactions. By year-end 2025, stablecoins accounted for over 30% of on-chain transactions, with their market cap reaching $250 billion.

Regulatory clarity and the introduction of global frameworks, such as the GENIUS Act, have helped standardize the stablecoin industry. These developments have led to increased institutional participation, with ETFs becoming a more integral part of traditional finance.

How Do Analysts View the Future of the Crypto Market in 2026?

Analysts are divided on whether the crypto market will continue to experience growth in 2026 or face a correction. On one hand, the recent surge in stablecoin usage and the easing of regulatory uncertainty have created favorable conditions for digital assets. On the other hand, concerns about a potential bear market are growing, especially as major coins like Bitcoin and Ethereum have not seen the explosive gains seen in previous years.

The introduction of the Digital Asset Market Clarity Act and the actions taken by the new SEC leadership have helped stabilize the market. However, investors remain cautious, with many watching for signs of broader macroeconomic shifts and regulatory developments in key markets like China and the EU.

What Are Analysts Watching Next?

Analysts are closely monitoring the performance of major crypto assets like Bitcoin and Ethereum in 2026. These assets have traditionally driven broader market trends, and any significant movement could influence investor behavior and market sentiment. In addition, the performance of stablecoins and ETFs is being tracked for signs of continued adoption and integration into traditional finance.

The regulatory landscape in the U.S. remains a key area of focus, with further changes expected under the new SEC leadership. These developments could impact the broader market by influencing investor behavior and market structure. Market participants are also watching for any signs of a correction or bear market in 2026. While the market has shown resilience, the lack of explosive gains in major coins has led to concerns about a potential downturn. Investors are advised to remain cautious and monitor market conditions closely.