The Factors Behind Bitcoin and Major Tokens’ Early 2026 Rally

Bitcoin and Major Cryptos Rally into 2026 on Allocations and Safe-Haven Flows

Bitcoin (BTC $91,607) and the broader crypto market have started 2026 on a strong note, supported by new-year allocations, safe-haven demand, and early institutional inflows.

Market Moves

On Tuesday, Bitcoin traded near $93,700, up about 1% over 24 hours and over 7% since January 1. Ether (ETH $3,197) rose nearly 2% to $3,224, gaining roughly 9% for the week. Large-cap altcoins saw even stronger moves: XRP (XRP $2.24) jumped almost 13% in a day to $2.40 — up nearly 29% week-to-date — while Solana (SOL $136.82) rose 12% and Dogecoin (DOGE $0.1483) gained about 23%.

Tax-Driven Selling Fades

The rally follows weak price action in late December, when U.S. holders engaged in tax-loss selling and year-end portfolio cleanups. Analysts at QCP Capital said the fading of this pressure has cleared the path for a rebound.

“Crypto’s alignment with broader risk assets appears more like a regime shift to start the year, helped by the end of tax-loss harvesting and renewed policy optionality,” the firm said.

Safe-Haven Flows and Geopolitical Support

Monday’s U.S. military strike on Venezuela contributed to safe-haven buying in Bitcoin and gold. Market speculation that Venezuela’s oil supply could rise under U.S. guidance may also be boosting bullish sentiment, creating potential disinflationary pressure that could favor central bank rate cuts.

ETF Inflows and Options Activity

U.S.-listed spot ETFs launched 2026 with strong inflows, ending a two-month de-risking period. Eleven funds registered over $1 billion in the first two trading days, providing stabilization in thin holiday liquidity. Options data from Deribit shows traders buying calls at $100,000 for BTC and $3,200–$3,400 for ETH, signaling expectations of a near-term rally.

Liquidity Remains Tight

Despite the gains, liquidity is still thin, leaving the market sensitive to large trades. Vikram Subburaj, CEO of Giottus exchange, noted that while momentum is constructive, shallow order books and low spot volumes increase the risk of abrupt pullbacks. ETF inflows and desk activity provide some baseline support, but broad-based conviction has yet to fully develop