Why is crypto up today? – January 2, 2026

The crypto market is slightly higher today, with the total market cap up about 1.4% over the past 24 hours to around $3.1 trillion. Despite the improvement in pricing, trading activity remains relatively low, with 24-hour volume near $70.6 billion, reflecting selective participation rather than widespread risk-on behavior.

Crypto Winners and Losers

The performance of the top cryptocurrencies by market capitalization is mixed, although most large caps hold within recent ranges.

Bitcoin (BTC) is trading around $88,960, little changed on the day, but still up about 1.5% in the last 24 hours.

Ethereum (ETH) is slightly lower on the hour but higher on the day, trading near $3,024 after gaining around 1.6% over the past 24 hours and extending its weekly advance.

BNB (BNB) is among the best-performing large-cap companies, up about 1% to $867, while Solana (SOL) is up about 2.5% on the day, trading near $127.3 and outperforming several peers.

XRP (XRP) is slightly higher, gaining around 1.7% to $1.87, while TRON (TRX) added around 0.3%, holding near $0.285.

Dogecoin (DOGE) stands out as one of the strongest movers in the top 10, jumping over 8% to trade around $0.128.

Outside of the majors, activity is more pronounced. Among the trending tokens, Lighter gained almost 8%, while Pepe is up nearly 25%, extending its recent momentum. Monad is also higher, showing gains of more than 17%.

Among the big overall winners, Holomonde comes first with an increase of more than 30%, followed closely by River And The shock of Lilliputboth posting gains above 25% in the past 24 hours.

Meanwhile, Bitcoin may have already slipped into a bear market about two months ago, according to Julio Moreno, head of research at CryptoQuant, who points to a set of technical and on-chain indicators that turned bearish in early November and have yet to recover.

Moreno said the majority of signals behind CryptoQuant’s bullish score index have been giving warning signs for weeks.

The index, which ranges from 0 to 100, tracks a mix of metrics including network activity, investor profitability, demand for Bitcoin and overall market liquidity.

Bitcoin Holds $88,000 to Open 2026 with Light Volume and Growing Risk Appetite

Bitcoin hovered near $88,000 on Friday as markets calmed for the first trading session of 2026, with reduced volumes over the holidays keeping price movements contained.

Initially, risk appetite was most visible in Asia, where stocks in Hong Kong and South Korea rose on strength in technology and semiconductor stocks, while lockdowns in Japan and mainland China limited regional liquidity.

Crypto traders are watching for signs that Bitcoin can turn this calm into bullish momentum after a turbulent end to the year.

Mudrex analyst Akshat Siddhant said long-term holder supply turned positive for the first time in months, increasing by around 10,700 BTC, while continued FX outflows indicate a reduction in selling pressure. He noted that a break above $89,500 could open the door for a move towards $100,000, with $87,000 providing key support.

Broader markets have echoed this cautious optimism, with U.S. stock futures slightly higher as enthusiasm around big tech and AI continues through late 2025. Focus now shifts to U.S. economic data delayed by the government shutdown, Federal Reserve rate expectations and political risk from President Donald Trump’s expected decision on the next Fed chair.

Meanwhile, gold and silver posted strong gains, and the dollar started the year weaker after its biggest annual decline in eight years.

Levels and events to watch next

At the time of writing, Bitcoin is trading near $88,980, stabilizing after a volatile end to 2025. The chart shows BTC rebounding from a late November low around $85,000, followed by a period of sideways consolidation into December.

From a technical perspective, the $88,000-$88,500 range has become a key near-term support zone. Sustained holding above this zone could allow BTC to test the upper limit of the range near $90,000, with additional resistance around $92,000. A decisive breakout above this level would be necessary to shift near-term momentum back in favor of the bulls.

In contrast, a loss of $88,000 would likely bring $85,000 back into focus. Below this figure, a larger pullback could open the door to the $82,000-$83,000 zone, which previously served as a demand zone during the November sell-off.

Ethereum, meanwhile, is trading around $3,024, showing the first signs of stabilization after a sharp decline over several months. The chart highlights a clear downtrend from September highs above $4,500, followed by a sharp decline in November and choppy recovery attempts throughout December. ETH recently rebounded from a low near $2,800, but the upward momentum remains tepid.

For ETH, the $3,000 to $3,050 zone now acts as a critical pivot range. Holding above this zone could allow a move towards $3,200, with additional resistance near $3,400 if momentum improves. On the other hand, failure to defend $3,000 could send ETH back towards $2,800, with further support around $2,700.

Meanwhile, crypto market sentiment remains cautious, with the Crypto Fear and Greed Index still lodged in the fear zone. According to CoinMarketCap data shown in the chart, the index is currently at 34, highlighting a hesitant mood among investors despite the recent price stabilization of Bitcoin and Ethereum.

Although sentiment improved slightly from last week’s 27, it remains well below neutral levels and far from the optimism seen earlier in 2025. The index is also significantly higher than last month’s extreme fear reading of 16, suggesting that panic has eased, but confidence has not yet returned.

There is no U.S. spot ETF flow data for January 1 due to the market closing for the New Year. The latest available figures reflect December 31, the last trading day of 2025.

In that session, U.S. Bitcoin spot ETFs finished the year with net outflows of $348.1 million, according to SoSoValue, despite strong activity with daily trading volume of $2.83 billion.

Outflows were led by BlackRock’s IBIT, which saw $99.05 million leave the fund, followed by Fidelity’s FBTC with $46.58 million in net outflows. Grayscale’s GBTC also continued to bleed assets, seeing $69.09 million in outflows, while Ark & 21Shares’ ARKB saw $76.53 million in net redemptions.

Even with daily hindsight, cumulative net inflows into US BTC spot ETFs remain strong at $56.61 billion, with total net assets of $113.29 billion, representing approximately 6.47% of Bitcoin’s market cap.

U.S. Ethereum spot ETFs also closed the year under pressure, posting $72.06 million in net outflows as of Dec. 31, along with $808.1 million in trading volume.

BlackRock’s ETHA led the outflows, seeing $21.51 million leave the fund, while Grayscale’s ETH product saw $31.98 million in net redemptions. Fidelity’s FETH also saw smaller outflows of $2.22 million, reflecting widespread caution among issuers.

Despite the day’s weakness, cumulative net inflows for US ETH spot ETFs stand at $12.33 billion, with total net assets of $17.95 billion, or approximately 5% of Ethereum’s market cap.

At the same time, cryptocurrency losses from hacks and cybersecurity exploits declined sharply in December, falling 60% month-over-month to around $76 million.

The article Why is crypto rising today? – January 2, 2026 appeared first on Cryptonews.

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