Entering 2026, Bitcoin and mainstream cryptocurrencies have started the year strongly, with market sentiment clearly improving. Bitcoin’s price once approached $93,700, rising over 7% since early January, indicating a reflow of capital. Ethereum’s performance during the same period was equally impressive, with the price reaching around $3,224 and a year-to-date increase of nearly 9%. Among major altcoins, XRP performed the best, with a single-day increase of nearly 13% and a weekly gain of close to 29%. Solana and Dogecoin also recorded double-digit gains, further reinforcing the narrative of a “comprehensive market recovery.”
Analysis shows that the first major reason for this rally is the easing of “tax reduction sell-off” pressure. In late December 2025, especially in the US market, some investors sold cryptocurrencies at a loss to hedge against capital gains taxes, putting pressure on Bitcoin and mainstream tokens at year-end. As the new year began, this tax-loss harvesting effect gradually subsided, leading to a natural technical rebound in prices. Several institutions pointed out that asset reallocation at the start of the year often benefits highly volatile assets.
Secondly, risk-averse demand driven by macro risk events has also boosted Bitcoin prices. US military actions against Venezuela have triggered a reassessment of geopolitical uncertainties. In this context, Bitcoin and traditional safe-haven assets like gold have attracted attention, with some funds rotating out of riskier or already significantly risen assets into Bitcoin, viewed as a “digital hard asset.” This trend is especially evident in institutional trading and has strengthened Bitcoin’s narrative as a macro hedge.
The third supporting factor comes from the overall improvement in risk asset sentiment. US stocks have strengthened driven by tech stocks and artificial intelligence concepts, and historical data shows a strong correlation between Bitcoin and tech stocks. Discussions about slowing inflation and future rate cut expectations have also increased risk appetite for highly elastic assets. Additionally, market rumors about Venezuela’s energy supply and potential “shadow Bitcoin reserves,” though unconfirmed, have temporarily amplified bullish sentiment.
Overall, the strong performance of Bitcoin and mainstream tokens in early 2026 is not driven by a single factor but results from the combined effects of the fading of tax-related pressures, rising safe-haven demand, and a global increase in risk appetite. Short-term volatility may still increase, but structurally, the crypto market is entering a new phase of capital reallocation.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
BTC 15-minute drop of 0.45%: spot selling pressure led the move, and leveraged funds stayed on the sidelines, without worsening volatility
2026-04-11 13:00 to 13:15 (UTC), BTC recorded a short-term return of -0.45%, with a price range of 72526.3 to 72935.7 USDT, and the 15-minute swing amplitude was 0.56%. Overall market attention remains at a high level. Volatility is not extremely elevated, but downward pressure is clear, and disagreement between long and short positions in the short term has intensified.
The main driving force behind this abnormal move is active sell pressure in the spot market. During this period, the combined total trading volume of the spot market and perpetual futures increased month-over-month by about 12%. Order book data shows a slight rise in resting sell orders, faster cancellations of buy orders, and short-term liquidity tightening, triggering
GateNews31m ago
Passive BTC Earnings Made Simple: Bitcoin Everlight Phase 5 Shards Now Available for $100
Earning Bitcoin passively used to sound like something reserved for people with deep pockets, technical expertise, or industrial mining setups. Phase 5 of the Bitcoin Everlight presale just made that assumption obsolete. For $100 worth of BTCL tokens, anyone can now activate a shard and start
BlockChainReporter45m ago
Under the Iran-U.S. conflict, the Bitcoin market is currently splitting: institutions continue to buy, while whales and mining firms are accelerating their sell-offs
Amid the impact of the U.S.-Iran geopolitical conflict, the Bitcoin market has diverged: institutional investors continue to accumulate Bitcoin, while whales, mining firms, and some countries are reducing their holdings. Data shows that large holders have shifted to net selling, mining firms’ sell-offs have been significant, and sovereign holders have also clearly cut exposure. Despite muted market sentiment, the price of Bitcoin has held in the $65k to $73k range, and its future direction will depend on continued inflows of institutional capital.
GateNews1h ago
CME Bitcoin futures open interest falls to $8.41 billion, hitting a 14-month low
Chicago Mercantile Exchange bitcoin futures open interest fell to a 14-month low. Driven by the unwinding of basis trades, institutions are leaning toward directly holding spot, and the leverage level in the futures market has dropped significantly.
GateNews2h ago
STRC This week’s fundraising is expected to be able to buy 8,000 BTC, or hold 10,000 coins
Gate News message. On April 11, Strategy's Stretch (STRC) has, to date this week, raised enough funds to purchase 8,000 BTC. It is estimated that STRC may hold 10,000 BTC by the end of this week.
GateNews2h ago
