Crypto markets hit a decisive move higher in early Asian trading after a limited December, with Bitcoin climbing above $92,000 and Ether surpassing $3,100.
Key points to remember:
- Bitcoin and Ether broke out of their December ranges as risk sentiment returned to global markets.
- The QCP considers this decision as a potential regime change, favored by the reduction in tax-loss sales and the renewal of political optionality.
- Options markets have become more constructive, although positioning remains cautious despite increasing bullish demand.
The move was accompanied by a strengthening in global stocks and a decline in oil prices, indicating a broader return of risk appetite at the start of the year, according to QCP’s latest Asia Color note.
QCP: crypto rally signals regime change as risk appetite returns
QCP said the rally is increasingly looking like a market regime shift rather than a short-lived rebound.
The muted effect of end-of-year tax-loss sales removed a major drag on prices, while the renewed optionality of policies once again captured investors’ attention.
Against this backdrop, crypto strength appears more closely tied to traditional risk assets than it did late last year.
Geopolitical headlines also fueled the narrative. Markets were digesting the announcement of a US special forces operation that resulted in the capture of Venezuelan President Nicolás Maduro, who is now expected to face prosecution in the United States.
QCP noted that falling oil prices could add a disinflationary tailwind, while speculation around seized digital assets has fueled talk of a potential “shadow” Bitcoin reserve.
The company cautioned against taking such claims as fact, but said the idea reinforces the existing theme of sovereign interest in crypto holdings.
Morning Market Update
Is this rebound a post-options expiration effect, or the start of a broader rise?
Markets closed last Friday with positive momentum, which continued through the weekend in crypto and into the European opening. Risk sentiment remains constructive. European… pic.twitter.com/N133t7fsYW
– Nick the Greek (@Nikos_Np1910) January 5, 2026
Markets closed last Friday with positive momentum, which continued through the weekend in crypto and into the European opening. Risk sentiment remains constructive. European… Derivatives markets have become more favorable. QCP observed that the selling skew compressed, signaling reduced demand for downside protection, while interest increased in longer-term upside exposure, including the January 2026 $100,000 Bitcoin calls.
The demand for surface structures such as overlaps has also increased. Nonetheless, QCP cautioned that positioning remains measured.
“A continued rise in spot rates increases the chances of a gamma-assisted extension, although recent US sessions have muted rallies often enough to maintain disciplined positioning,” the firm said.
Whale Flows to Binance Rise as Purchasing Power Stagnates, Analysts Warn
Large cryptocurrency holders moved about $2.4 billion from Bitcoin and Ether to Binance over the past week, marking the exchange’s largest net inflow in about a month.
On-chain data cited by CryptoOnchain shows that deposits were almost evenly split between the two assets, a trend often linked to preparation for sale or the use of assets as collateral for derivatives.
Analysts have highlighted a key imbalance behind inflows. Stablecoin movements remained largely flat at around $42 million for the week, with most activity reflecting transfers between blockchains rather than new capital entering the market.
Meanwhile, Abra CEO Bill Barhydt believes Bitcoin could benefit in 2026 as easing monetary policy injects new liquidity into global markets, reigniting risk appetite after a prolonged period of tight financial conditions.
Barhydt said the U.S. central bank is already laying the groundwork for looser policy.
He pointed to early signs of renewed balance sheet support, calling the current environment one of “light quantitative easing,” with the Federal Reserve stepping in to support demand for government debt.
The article QCP: Options Markets Signal Bullish Shift After Crypto Breakout appeared first on Cryptonews.
