Bitcoin climbs 1.32% to $88,343, while trading volumes stay strong at $35 billion.
Ethereum rises 0.97% to $2,969, altcoins follow suit, trading in the green zone except Dogecoin.
Capital rotation signals emerge as gold gains 9% while Bitcoin fell 20% since November.
Crypto prices today are on an uptrend as top cryptocurrencies show early signs of recovery after weeks of sustained selling pressure. Bitcoin and Ethereum are leading the uptick, supported by healthy trading volumes amid the New Year rally as 2025 nears its end. Investors remain cautiously optimistic on uncertainty around expected US Fed rate cuts in 2026 and broader liquidity conditions.
Here’s everything that happened in the crypto market today based on CoinMarketCap data.
Bitcoin price currently stands at $88,343, up 1.32% in the last 24 hours. The world's largest cryptocurrency maintains a market cap of $1.76 trillion despite trading 29% below its October all-time high of $125,100.
According to CoinSwitch Markets Desk, “Bitcoin remains range-bound amid thin year-end trading, hovering between $85,000 and $90,000. The lack of a decisive breakout reflects muted participation as markets head into the holiday period. While US equity markets have staged a rebound, Bitcoin is showing signs of a gradual, steady recovery rather than strong momentum.”
The analysts further noted, “A nearly 50% drop in open interest suggests many traders have moved to the sidelines. A sustained weekly close above $94,000 could pave the way toward $101,000 and $108,000, though resistance remains strong. On the downside, $84,000 continues to be a key support level for Bitcoin.”
Crypto prices of the world’s top ten tokens are on an uptrend today with only Dogecoin facing minor corrections. The popular meme coin went down 0.23% to $0.12 at press time. Meanwhile, stablecoins USDT and USDC held near their $1 peg.
Ethereum price has climbed to $2,969, posting a 0.97% gain over the past day. The second-largest crypto by market value holds a $358 billion market cap. At the same time, TRON showed a modest 0.10% increase to $0.28.
XRP price sits at $1.86, up 0.48% with a market cap of $113 billion. BNB has gained 0.93% to reach $859.63, while Cardano trades at $0.35, up 0.17%. Solana price reached $125.47, showing the strongest performance among top assets with a 1.43% increase. The layer-1 blockchain token maintains a $70.6 billion market cap.
Also Read: Crypto Prices Today: Bitcoin Price Slips 3% to $87,234, Ethereum at $2,942, Altcoins Fall
Market experts say US Federal Reserve interest rate decisions will play a major role in determining whether crypto prices today can sustain their upward movement into 2026. Clear Street managing director Owen Lau told CNBC that Fed rate cuts are ‘one of the key catalysts for the crypto space in 2026.’ Lower rates typically push investors toward riskier assets like Bitcoin and altcoins as traditional investments become less attractive.
The Fed's December meeting minutes reveal the central bank is ready to adjust policy if needed. However, prediction markets show just 15% odds of a January rate cut, with March holding 52% probability.
The Fed has already cut rates three times in 2025 by 25 basis points each in September, October, and December. Bitcoin surged to its record high of $125,100 shortly after the first cut, though a massive liquidation event later wiped out $19 billion in leveraged positions.
Crypto prices today are benefiting from early signs of capital rotation back into digital assets after months of underperformance against gold and stocks. The crypto market has lagged behind traditional assets since November. Gold has jumped 9% while the S&P 500 gained 1%, but Bitcoin fell roughly 20% during the same period.
For the full year, gold rose nearly 70% and silver surged 150%, while Bitcoin dropped about 6%. Precious metals dominated the "debasement trade" as investors sought protection from inflation and currency risks. However, analysts see this gap creating potential for a catch-up rally.
On-chain data shows large Bitcoin holders have slowed their selling for the first time in six months, with long-term holder positions stabilizing after falling from 14.8 million BTC in July to 14.3 million in December. "Gold has been leading Bitcoin by roughly 26 weeks," said Lewis Harland from Re7 Capital. Bitcoin tends to follow, but with greater torque.
Active Bitcoin addresses increased 5.5% recently, even as transaction counts fell, a pattern that often signals accumulation rather than speculation. Some analysts believe the short squeeze in metals is over and capital is now rotating back into crypto.
Despite gains in crypto prices today, overall market sentiment stays weak. The Crypto Fear & Greed Index has remained in ‘Extreme Fear’ territory since December 13, posting a score of 23 on December 31. This reflects lingering concerns about Bitcoin's 29% decline from its October peak and uncertainty about whether the Federal Reserve will continue cutting rates in early 2026.
Also Read: Bitcoin News Today: BTC Bull Case for 2026 Builds as Traders Target $107,000 Breakout Signal
Prediction markets give Bitcoin a 40% chance of being the best-performing asset in 2026, ahead of gold at 33% and stocks at 25%. Investors show renewed interest as selling pressure eases and accumulation quietly builds.
While fear still dominates sentiment, history shows markets turn before confidence returns. With macro catalysts lining up and positioning improving, crypto may be entering a transition phase, ending the year bruised, but potentially setting the stage for a sharper, faster comeback in 2026.
1. Why are crypto prices rising today?
Today, cryptocurrency prices are driven by reduced selling pressure, stable trade volumes, and initial indicators of capital flow returning to digital assets. Investors are also positioning themselves in anticipation of potential Federal Reserve rate cuts, which historically support risk-based investments such as Bitcoin and its competitors.
2. How do interest rate cuts from the Federal Reserve affect the cryptocurrency market?
When interest rates fall, traditional investments like bonds become less profitable, prompting investors to seek higher-risk options, such as cryptocurrencies. Historically, there have been substantial increases in cryptocurrency values following Federal Reserve rate cuts, suggesting the US policy will likely remain an important factor in cryptocurrency values in 2026.
3. Will Bitcoin be in a downward trend even with the price increase today?
Bitcoin's value is approximately 29% lower than its October 2021 all-time high, and as a result, it is still technically considered to be in the "recovery phase." However, the declining whale sell-off and the increased number of active wallet addresses suggest that downside pressure could be easing.
4. What does a rotation of capital mean to the values of cryptocurrencies?
Capital rotation illustrates where funds are being removed or added in the market. After a lengthy period of strong results for both gold and silver, analysts anticipate that funds will rotate back into cryptocurrencies; therefore, if liquidity improves, the potential for a catch-up rally remains for the sector.
5. What does market sentiment say about crypto’s outlook?
The market sentiment toward cryptocurrencies is cautious (even though token prices appear to be recovering). The current sentiment can be tracked using the ‘Fear & Greed’ Index, which remains in ‘extreme fear.’ Most of the time, crypto markets begin to recover while sentiment is at its lowest. Therefore, it is crucial for long-term investors to closely examine this phase.
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