As 2026 unfolds, Bitcoin is capturing the spotlight, trading above $93,700 on Tuesday—a notable increase of 7% since the year’s beginning. This recent surge marks a positive turnaround for a cryptocurrency that had experienced a sluggish December.
Ethereum is also enjoying a rally, with its price climbing approximately 2% to reach $3,224, translating to a 9% increase since the start of the year. The upward momentum isn’t limited to Bitcoin and Ethereum; XRP has emerged as a standout performer, skyrocketing nearly 29% over the past week to hit $2.40, with daily gains of 13%. Other alternative cryptocurrencies like Solana and Dogecoin have also made headlines, with rises of 12% and 23% respectively.
This resurgence in the crypto market can be attributed to the fading selling pressure from the end of 2025. Tax-related selling had previously capped potential gains as U.S.-based crypto holders liquidated assets to offset capital gains. However, with the tax loss harvesting season winding down, investors are now back in the game.
Adding to this bullish atmosphere, data indicates that U.S.-listed spot Bitcoin ETFs have registered over $1 billion in net inflows during the first two trading days of 2026. Notably, BlackRock’s Bitcoin ETF alone witnessed an impressive inflow of $287 million in just one day—its largest influx in three months. This surge in institutional interest signals a potential change in the tide after a period of withdrawals.
The market’s optimism is further reinforced by options trading data, which shows increased activity around call options with strike prices nearing $100,000 for both Bitcoin and Ethereum. Such positioning by traders hints at expectations for continued gains in the crypto sphere.
Stock Market Highlights
In sync with the cryptocurrency rally, major stock indices are also celebrating a strong start to 2026. The Dow Jones Industrial Average reached a record close on Monday, soaring nearly 600 points. The S&P 500 and Nasdaq followed suit, rising by approximately 0.6% and 0.7% respectively, with large-cap growth stocks like Tesla and Amazon driving these gains.
Renewed optimism surrounding artificial intelligence developments has buoyed technology shares, while energy stocks, particularly Chevron, have also excelled—jumping 5.1% amid discussions between the White House and U.S. oil companies regarding Venezuela’s energy sector.
Challenges Ahead
Despite the positive price movements, analysts caution about underlying risks related to market liquidity. Trading volumes remain at multi-year lows, making the market susceptible to abrupt price fluctuations if larger orders are placed. Vikram Subburaj, CEO of the India-based Giottus exchange, emphasizes that current market dynamics could amplify reactions to marginal trading flows, increasing the risks of both rapid gains and sharp pullbacks.
The strength of gold futures, which have shown their most significant daily gains since October, reflects a more cautious sentiment among investors seeking refuge from potential volatility. In contrast, the crypto market is primarily riding high on the positive sentiment emanating from Wall Street, further fueled by speculation about U.S. guidance on Venezuelan oil supplies.
As Bitcoin and the broader cryptocurrency market enjoy this positive momentum, many investors will be eager to see how the landscape unfolds in the coming weeks and months.
The post Daily Market Update: Bitcoin and Stock Markets Start 2026 with Strong Gains appeared first on CoinCentral.
