Bitcoin rose 1.18% to $88,595 as its total crypto market cap climbed to $1.76 trillion.
Ethereum crossed $3,011 while Dogecoin and Cardano surged over 8% each.
The crypto Fear & Greed Index jumped to 28 as liquidations fell 46% to $126 million.
Crypto prices are today trading in the green zone as markets kick off 2026 with renewed optimism. Bitcoin, Ethereum, and major altcoins were all on an uptrend at the time of writing, signaling a potential shift in sentiment following December's challenging end. Investors are cautiously returning to risk assets as confidence slowly rebuilds in global crypto markets. Here’s the latest crypto news and data impacting the market today based on CoinMarketCap live updates.
Bitcoin price rose 1.18% over the past 24 hours, trading at $88,595 at press time. This uptick comes as the leading cryptocurrency attempts to regain momentum after closing 2025 roughly 6% lower than its peak. With a market cap that stood at $1.76 trillion and 24-hour trading volume exceeding $20 billion, Bitcoin continues to dominate the crypto landscape.
CoinSwitch Markets Desk suggests, “BTC is trading around $88,000 and continues to move within a narrow range. Buyers have defended the $87,200–$87,400 zone, providing short-term support, while upside attempts near $89,000 have faced consistent rejection. The formation of higher lows suggests some underlying strength, but momentum remains moderate. Overall, price action points to consolidation, with a clearer direction likely to emerge only after a decisive break above resistance.”
Ethereum price climbed 1.23% to reach $3,011, with its market capitalization holding steady at $363 billion. Other major tokens also joined the rally. Solana price jumped 1.62% to $126.79, maintaining its position as one of the top-performing layer-1 blockchains. XRP price was up by 2.02%, trading at $1.87.
At the same time, Dogecoin stood out with a gain of 8.61%, reaching $0.1280. Cardano also soared 8.16% to $0.3593. BNB rose 0.08% to $863.77, while TRON increased 0.66% to $0.2853. On the other hand, stablecoins USDT and USDC remained stable, trading near their $1 peg with minimal fluctuations.
Several factors are driving positive movement in crypto prices today.
Financial analysts point to the historical ‘January effect’ as a key driver. This pattern shows that both crypto and traditional equity markets often perform better in January after investors reset their portfolios following year-end tax strategies.
According to market research, much of the late December selling was ‘mechanical rather than fundamental.’ Many US investors engaged in tax-loss harvesting, selling positions to offset gains before the year ended. Now, those same investors are returning with fresh capital, creating buying pressure.
The Crypto Fear & Greed Index rose eight points to 28, moving out of ‘extreme fear’ territory into the ‘fear’ zone. While this still indicates caution, it shows that panic selling has eased significantly since late December.
Derivatives data from CoinGlass reveals a cooling of excessive leverage in the market. Open interest dropped 3.29% to $128 billion, while 24-hour liquidations fell 46% to just $126 million. This suggests traders are taking a more measured approach rather than chasing risky short-term bets.
Spot Bitcoin and Ethereum ETF flows, which saw small outflows in mid-December, have begun to stabilize. Late December and early January sessions showed much lighter redemptions, with many institutional investors choosing to pause rather than fully exit their positions. Analysts at Coinbase Institutional noted that allocators are waiting for clearer signals before adding more exposure.
The broader economic picture is also supporting crypto prices today. With no major geopolitical shocks and growing expectations that the US Federal Reserve may cut interest rates later in 2026, risk appetite is gradually returning to markets.
Also Read: Crypto Prices Today: Bitcoin Above $88,000, Ethereum Gains 0.97%, Solana Hits $125
Turkmenistan officially legalized cryptocurrency mining and trading on January 2. President Serdar Berdimuhamedov signed new legislation that brings virtual assets under civil law. It also establishes a licensing framework for crypto exchanges, overseen by the country's central bank.
The legislation creates a regulated environment where licensed exchanges can operate, though the government maintains strict oversight. Turkmenistan's economy relies heavily on natural gas exports to China, and officials appear to view crypto as a potential avenue for economic diversification. This development adds to a growing list of nations exploring crypto regulation. Although experts note that Turkmenistan's continued internet restrictions may limit practical adoption.
Also Read: Best Cryptos for 2026: 3 Altcoins That Could 10x Your Investment
Crypto prices today suggest a broader shift in market behavior rather than a single-asset rally. Strength across large-cap tokens, improving liquidity, and declining leverage point toward a healthier market structure entering 2026.
Analysts believe the focus in the near term will be on sector rotation, with capital flowing between layer-1 networks, infrastructure tokens, and high-utility projects. However, volatility is expected to remain elevated as investors react to macro data, policy signals, and global regulatory developments throughout the year.
1. What factors are responsible for the increase in the value of cryptocurrency today?
Today, the value of cryptocurrencies has increased due to a renewed sense of optimism among investors at the beginning of the year. The period of tax-related ‘selling’ has come to an end, the excitement around leveraged trading has slowed down, and new investors are starting to move back into the cryptocurrency market with the introduction of new money.
2. Are altcoins performing better than Bitcoin today?
Yes, today, many different altcoins have outperformed Bitcoin. In particular, Dogecoin and Cardano have experienced large gains, which indicates that traders have a certain level of comfort in taking on more risk in the form of investing in altcoins, rather than the traditional large capital (Bitcoin) investments.
3. What are the Effects of January on cryptocurrency markets?
January tends to see substantial increases in prices due to the rebalancing of portfolios of investors who sold out of their positions during December as they were repurchasing the crypto investments in January after the impact of tax-loss selling was felt. In the scenario of cryptocurrency markets, this creates temporary upward pressure on prices in January as they are experiencing the effects of tax-loss selling and therefore experiencing an influx of selling pressure.
4. What are ETF flows, and how do they affect prices in cryptocurrency markets today?
ETF Flows, or Exchange Traded Fund Flows, reflect the behaviour of big institutional investors. As such, the relatively stable flow of investment into the Bitcoin and Ethereum ETFs has a positive implication for the overall price stability of these two cryptos, as it demonstrates to the market that large institutional investors are in fact ‘playing’ or moving into the cryptocurrency market instead of ‘getting out.’
5. Is it realistic to expect continued high levels of volatility in 2026?
Yes, expect continued extremely high levels of volatility throughout 2026 throughout all cryptocurrency markets, as they will continue to respond quickly to macroeconomic indicators, interest rate outlooks, and new government regulatory policies across multiple nations.
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