Bitcoin and Major Cryptos Start 2026 Strong on Allocations, Safe-Haven Demand
Bitcoin (BTC $91,607) and the broader crypto market have kicked off 2026 with robust gains, driven by fresh new-year allocations, safe-haven buying, and other market catalysts.
Market Performance
On Tuesday, Bitcoin traded near $93,700, up roughly 1% over 24 hours and more than 7% since January 1. Ether (ETH $3,197) rose nearly 2% to $3,224, gaining around 9% over the same period. Large-cap tokens saw even stronger moves: XRP (XRP $2.24) jumped almost 13% in a day to $2.40, up nearly 29% on the week, Solana (SOL $136.82) rose 12%, and Dogecoin (DOGE $0.1483) gained about 23% over the past seven days.
Tax-Related Selling Eases
The rally follows weak price action in late December, when tax-related selling and year-end portfolio adjustments weighed on crypto, particularly during U.S. hours. U.S.-based holders reportedly sold underperforming assets at a loss to offset capital gains, a common year-end strategy. Analysts at Singapore-based QCP Capital say that fading tax pressure has cleared the way for a bounce.
“Crypto’s alignment with broader risk assets looks less like a coincidence and more like a regime shift to start the year, helped by the end of tax-loss harvesting and policy optionality back on the radar,” the firm said.
Safe-Haven Demand Amid Geopolitical Tensions
Monday’s U.S. military strike on Venezuela contributed to safe-haven buying in Bitcoin and traditional assets like gold.
“This move is likely a mix of fresh risk budgets, rotation from outperforming assets, and flows into hard assets following the Venezuela headlines,” said Jeff Anderson, head of Asia at STS Digital.
Market speculation that Venezuela’s oil supply could expand under U.S. guidance may also be fueling bullish sentiment. A potential increase in supply could lower oil prices, creating disinflationary pressure that may support central bank rate cuts. QCP Capital added that market chatter around Venezuela controlling a “shadow” Bitcoin reserve — though unverified — has also boosted optimism.
ETF Inflows and Options Activity
U.S.-listed spot ETFs launched 2026 with strong inflows, signaling the end of a two-month de-risking period. Eleven funds have collectively received over $1 billion in the first two trading days, according to SoSoValue.
“The final trading days of 2025 and early 2026 delivered a cautious but constructive reset for crypto markets,” said Timothy Misir, head of research at BRN. “Spot ETF inflows across Bitcoin, Ethereum, and XRP helped stabilize prices in thin holiday liquidity.”
Options data from Deribit shows traders snapping up call options at the $100,000 strike for Bitcoin, and $3,200–$3,400 for Ether, signaling anticipation of a near-term rally.
“Call activity is picking up across both majors. Blocks show buyers in the belly — BTC Jan/Feb 98k–100k calls, ETH 3200–3400 calls — building on the $100k strike interest flagged last week,” said Jake Ostrovskis, Head of OTC at Wintermute.
Liquidity Concerns Remain
Despite the positive momentum, liquidity remains thin. Low spot volumes mean large trades can disproportionately impact prices, leading to potential sharp swings. Vikram Subburaj, CEO of India-based Giottus exchange, noted:
“The short-term structure has flipped from weakness to strength. That said, spot volumes are at their lowest since late 2023 and order books remain shallow. This makes the rally sensitive to marginal flows and increases the risk of abrupt pullbacks.”
ETF inflows and returning desk activity are providing some baseline support, but analysts caution that broad-based conviction is still developing.
