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Bitcoin and the broader cryptocurrency market started 2026 with a strong rally, supported by safe-haven demand amid geopolitical tensions and new-year capital allocation. Institutional inflows into U.S.-listed spot ETFs surged, signaling an end to the risk-off period and boosting market confidence.
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Despite the positive momentum, concerns about thin liquidity remained, leaving the market vulnerable to sharp price swings. Bitcoin traded around $93,700 after roughly a 1% gain on Tuesday, and has risen more than 7% since January 1. Ether rose nearly 2% to about $3,224, logging roughly a 9% gain over the same period. XRP led large-cap movers, surging about 13% in a day to around $2.40 and up about 29% for the week.
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Solana rose about 12%, and Dogecoin climbed roughly 23% over the past week. The continued Bitcoin rally aligns with a positive mood on Wall Street. Call option activity increased for both Bitcoin and Ethereum, with BTC January–February calls at $98,000–$100,000 and ETH at $3,200–$3,400. Trading volumes remain small, but directional bets around the $100,000 strike expanded.
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Liquidity remains a concern as spot volumes stay at multi-year lows and order books stay thin. According to Schwab, quantitative tightening has ended and the balance sheet has started growing again, but cycle theories and adoption concerns could still cloud Bitcoin’s upside.
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While 2026 is expected to be a positive year, Schwab cautioned that Bitcoin’s gains may fall short of the historical average around 70% from the yearly low. Morgan Stanley has moved to strengthen its crypto business by applying for spot Bitcoin and Solana ETFs. Ethereum’s staking queues have cleared, potentially changing ETH trading dynamics. Buck launches a Bitcoin-linked savings coin tied to Michael Saylor’s strategy. Crypto markets today show Bitcoin testing key resistance as memecoin trading volume surges. Arthur Hayes’ Maelstrom enters 2026 with near-maximum risk bets on altcoins.
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