In a recent interview on AsharqNews Bloomberg, Zac Cheah, co-founder of Pundi AI and known on social media as @Zac_Pundi, provided deep insights into the ongoing cryptocurrency market recovery. Broadcasted on January 6, 2026, the discussion centered on distinguishing genuine drivers of market resurgence from mere noise, while outlining key factors to monitor as we approach 2026. This comes at a pivotal time for crypto traders, with Bitcoin (BTC) and Ethereum (ETH) showing signs of stabilization after volatile periods, potentially signaling new trading opportunities for investors eyeing long-term positions.

Decoding the Drivers of Crypto Market Recovery

According to Zac Cheah's analysis in the interview, the market recovery is primarily fueled by increasing institutional inflows and evolving regulatory landscapes. He emphasized how major financial institutions are channeling capital into digital assets, boosting liquidity and confidence. For instance, recent data from Chainalysis reports highlighted a surge in institutional investments, with over $10 billion flowing into crypto funds in the last quarter of 2025 alone. This influx has directly impacted trading volumes, with BTC/USD pairs on major exchanges like Binance recording average daily volumes exceeding 50,000 BTC as of early January 2026. Traders should watch support levels around $80,000 for BTC, where a breach could indicate a pullback, while resistance at $95,000 might open doors for breakout trades. Cheah also noted that noise factors, such as short-term social media hype, often distract from these fundamental signals, advising traders to focus on on-chain metrics like active addresses and transaction volumes for more reliable insights.

Institutional Inflows and Their Trading Implications

Diving deeper, the interview highlighted how institutional participation is not just about capital but also about stabilizing volatility. Ethereum's ETH/USD pair, for example, has seen a 15% uptick in the past 24 hours leading into the interview date, correlating with announcements of ETF approvals in various jurisdictions. According to reports from Bloomberg, these inflows have pushed ETH's market cap towards $500 billion, creating arbitrage opportunities across spot and futures markets. Traders can capitalize on this by monitoring spreads between platforms, with historical data from 2025 showing profitable gaps during similar recovery phases. Cheah warned, however, that sustaining this uptrend depends on regulatory clarity, such as potential U.S. SEC guidelines expected in mid-2026, which could either propel altcoins like SOL and AVAX or trigger corrections if overly restrictive.

Looking ahead to 2026, Cheah outlined critical watchpoints including global economic indicators and technological advancements in blockchain. He pointed to correlations with stock markets, where a rebound in tech-heavy indices like the Nasdaq has mirrored crypto gains, driven by AI integrations in Web3 projects. For crypto-stock trading strategies, investors might consider pairs like BTC against Tesla (TSLA) stocks, given shared themes in innovation. On-chain data from Glassnode as of January 5, 2026, shows BTC's realized volatility dropping to 40%, a level that historically precedes bullish runs. This setup suggests swing trading opportunities, with entry points near moving averages such as the 50-day EMA for ETH at $3,800. Overall, the interview underscores a shift towards data-driven trading, urging participants to filter out noise and align strategies with verifiable market signals for optimal risk-reward ratios.

Strategic Trading Opportunities Heading into 2026

To wrap up, Zac Cheah's perspectives offer actionable trading insights for the crypto landscape. With market sentiment turning positive amid recovery signals, traders should prioritize diversified portfolios incorporating stablecoins for hedging. Key resistance breakthroughs could see BTC targeting $100,000 by Q2 2026, based on fibonacci extensions from 2025 lows. Meanwhile, emerging tokens tied to AI, like those in the Pundi AI ecosystem, may benefit from broader adoption trends. By integrating these elements—focusing on institutional flows, regulatory developments, and technical indicators—traders can navigate the noise and position for sustained growth in the evolving crypto and stock market interplay.