Bitcoin (BTC) has kicked off 2026 on a positive note, trading around $93,700, reflecting a 1% increase over the past day and more than 7% since the start of the year. The overall cryptocurrency market is also experiencing an upswing, with analysts attributing this optimism to new year investments, safe-haven interest, and various other factors. Ether (ETH) has seen nearly a 2% rise to $3,224 and is up approximately 9% in the same timeframe. XRP led major cryptocurrencies with an impressive jump of almost 13%, reaching $2.40 within just one day and nearly 29% for the week. Additionally, Solana (SOL) increased by about 12%, while Dogecoin (DOGE) gained roughly 23% over the last week.
The recent surge follows a period of disappointing price movements in late December when tax-related selling pressures limited growth potential during U.S. trading hours. Reports indicated that U.S.-based investors were liquidating their crypto assets at losses to offset capital gains taxes effectively reducing their overall tax burden by taking losses on underperforming investments.
This selling pressure appears to have subsided now, allowing for recovery as noted by analysts from QCP Capital based in Singapore.
According to them: “The correlation between crypto assets and broader risk markets seems less coincidental now; it indicates a shift as we begin this year due to fading end-of-year tax loss harvesting alongside renewed policy options.”
The ongoing rally in Bitcoin prices aligns well with positive sentiments observed on Wall Street recently; U.S. stocks saw gains after military actions against Venezuela boosted oil shares while renewed enthusiasm surrounding AI technology lifted tech stocks—both sectors that often influence cryptocurrency trends closely.
Safe-Haven Demand
The military strike against Venezuela likely contributed further to Bitcoin’s appeal as a safe-haven asset along with traditional safety instruments like gold.
Jeff Anderson from STS Digital commented: “This market movement appears driven by fresh risk allocations being deployed alongside shifts away from outperforming assets towards hard commodities influenced by news regarding Venezuela.”
Speculation suggesting that Venezuelan oil supply might increase under U.S. guidance could be fueling bullish sentiment; if true it could lead to lower oil prices which would generate disinflationary effects potentially prompting central banks toward rapid rate cuts.
“The recent developments concerning Venezuela may act as an immediate catalyst for BTC,” stated QCP Capital adding that discussions have resurfaced regarding claims of substantial undisclosed Bitcoin reserves held by Venezuela—though these assertions remain unverified.
ETF Inflows & Bullish Options Activity
This year has already witnessed significant inflows into newly launched spot ETFs listed in the United States marking an end to two months where institutions withdrew billions leading both BTC and broader crypto markets downward.
In just two days at the beginning of this week alone these eleven funds collectively recorded net inflows exceeding $1 billion according data provided by SoSoValue.
Timothy Misir from BRN remarked via email: “The closing days of last year combined with early sessions this year have set up cautiously optimistic conditions for crypto markets.” He added that institutional flows turned positively after weeks leaning negative while spot ETF inflows across Bitcoin Ethereum XRP helped stabilize pricing amid thin holiday liquidity conditions.”
A Need For Caution Amid Low Liquidity Concerns
Despite encouraging price trends some experts continue expressing concerns about “thin liquidity” presenting risks ahead.
Liquidity pertains directly related how well large buy/sell orders can be absorbed without causing significant price fluctuations—when liquidity is weak or thin any sizable order tends dramatically affect current spot prices leading erratic movements often cascading throughout market dynamics.
Vikram Subburaj CEO Giottus exchange highlighted ongoing low volumes indicating fragile liquidity levels saying: “While short-term structures seem stronger currently overall volumes remain at multi-year lows resulting shallow order books making rallies more susceptible marginal flow changes increasing chances sharp corrections occurring.”
As desks return demand surrounding ETFs stabilizes traders emphasize importance maintaining baseline bids especially when facing thinner spot books moving forward.