Early 2026 Marks a Bullish Turning Point for the Crypto Market: What’s Driving It?

Jakarta, Pintu News – The crypto market is starting 2026 with very bullish momentum after a cautious trading period at the end of 2025. Market capitalization has surged past $3.01 trillion, driven by improved investor sentiment, decreased outflows from ETFs, and renewed interest from institutional players.

Causes of Crypto Market Surge

The crypto market is currently experiencing positive momentum ahead of a major options expiration event. Traders are closely watching contracts from Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL) worth $2.2 billion expiring. This could lead to volatility and changes in market direction. In addition, the upcoming US crypto policy is cause for optimism.

The CLARITY bill, which will be discussed in January, is expected to resolve the dispute between the SEC and CFTC. The GENIUS bill will also bring federal standards for stablecoins. The proposed innovation exemption by the SEC could also reduce compliance on new crypto projects, which would be a positive signal for 2026.

Read also: Bitcoin Price 2025: Reviewing the Accuracy of Predictions by Big Names in the Crypto World

Sentiment Indicators and ETF Fund Flows

The Crypto Fear & Greed Index indicator showed an increase to 34 from 31, which is the highest since mid-December. This change indicates a decrease in fear and a growing readiness to take risks.

Outflows from Bitcoin (BTC) ETFs also dropped significantly to $1.09 billion in December, compared to $3.48 billion in November. This decline reflects a decrease in selling pressure and signals a more stable institutional environment.

Read also: 3 Crypto Market Predictions and Trends that Potentially Dominate the Year 2026

Altcoin Performance and Resistance Zone Testing

Dogecoin (DOGE) performed the best with an 8% gain in the last 24 hours. The price managed to break the key resistance at $0.121 after forming a double-bottom formation. Good demand was seen as whales accumulated over 220 million DOGE in the session. Cardano (ADA) rose 6% as altcoin traders turned to riskier investments. Bitcoin (BTC) is currently facing major resistance at $90,000.

If broken, it could push the rally up to $95,000. Ethereum (ETH) is trying to break $3,020, with the next target being $3,500. If it fails to break resistance, Ethereum (ETH) could return to $2,700. Ripple (XRP) is trying to move above $2.00. If successful, the token could reach $2.20, and if rejected, it could drop to $1.80.

Conclusion

The Federal Reserve has injected $31 billion into the banking system, increasing liquidity in the financial markets. This injection has aided in risk-taking by investors, including in the crypto market. Bitcoin’s (BTC) dominance fell slightly to 58.96%, signaling an early rotation to altcoins.

The Altcoin Season Index remains at 22, but a change above the $3.1 trillion market capitalization might be a catalyst for a larger risk rotation. The main near-term triggers are the US jobs report on January 5 and further monitoring of Bitcoin ETF (BTC) fund flow trends. These activities will help determine the performance of the crypto market in the first quarter of 2026.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coingape. Here’s Why Crypto Market Turns Bullish as 2026 Kicks Off. Accessed on January 5, 2026
• Featured Image: Generated by AI