Crypto Market Turns Bullish as 2026 Begins

The crypto market has kicked off 2026 on a strong note, with total market capitalization holding above $3.01 trillion. Improving investor sentiment, easing ETF outflows, and renewed institutional interest have helped reverse the cautious tone seen in late 2025. Bitcoin climbed around 1.6% near $89,000, while Ethereum traded close to $3,010, pulling major altcoins higher.

What’s Driving the Rally?

One key factor is the sharp slowdown in Bitcoin ETF outflows, which dropped to $1.09 billion in December compared to $3.48 billion in November, signaling reduced institutional selling pressure. Sentiment indicators are also improving, with the Crypto Fear & Greed Index rising to 34, its highest level since mid-December. Meanwhile, optimism around upcoming U.S. crypto policy debates, including clarity on market regulation and stablecoin frameworks, is adding to confidence.

Altcoins Gain as Whales Return

Altcoins are showing renewed strength, led by Dogecoin, which surged 8% after whales accumulated over 220 million DOGE in a single session. Cardano gained around 6% as traders rotated into higher-risk assets. Bitcoin dominance slipped slightly to 58.96%, hinting at early-stage altcoin rotation as risk appetite improves.

Key Levels and What to Watch

Bitcoin is testing a critical resistance zone near $90,000, with a breakout potentially opening the path toward $95,000. Ethereum faces resistance around $3,020, while XRP is eyeing a move above $2.00. Looking ahead, traders are closely watching upcoming U.S. jobs data, ongoing ETF flow trends, and broader liquidity conditions, all of which could shape crypto market momentum in early 2026.