The cryptocurrency market has opened 2026 with a strong recovery, adding close to $200 billion in total value and lifting the overall market capitalization to $3.12 trillion. This represents an almost 5% gain year-to-date, signaling an improving risk appetite following a volatile December.
Bitcoin continues to dictate the broader market direction, with its dominance standing at 58.6%. Ethereum accounts for 12.2% of the total market share, while the remaining 29.3% is spread across all other cryptocurrencies. This distribution confirms capital concentration in Bitcoin, a typical feature of early-stage recoveries. The Altcoin Season Index reinforces this structure, currently reading 26 out of 100, firmly placing the market in "Bitcoin Season" where most altcoins are underperforming Bitcoin on a relative basis.
Market psychology has improved but remains cautious. The Crypto Fear & Greed Index currently sits at 40, categorized as neutral. This marks a notable shift from deeper fear levels seen in late December, suggesting selling pressure has eased. Neutral sentiment often reflects a transition phase where participants wait for confirmation before committing significant capital.
Price performance among major cryptocurrencies supports selective strength. Bitcoin is trading near $91,450 with a daily gain close to 2%. Ethereum has climbed to around $3,140, while BNB trades near $886 and Solana around $134. All four assets show positive daily performance, reinforcing the narrative that capital is flowing first into established large-cap networks.
While the total market cap increased 1.54% over 24 hours, the 24-hour trading volume plunged by 38.51% to $72.03 billion. The DeFi Total Value Locked (TVL) saw a slight 0.82% surge to $124.187 billion, led by Aave. Conversely, NFT sales volume dropped by 32.95% to approximately $5.94 million.
The market structure points to cautious optimism, with a steady recovery from mid-December lows. The absence of extreme greed suggests the rally has not yet reached overheated conditions. Whether this evolves into a broader risk-on phase will likely depend on Bitcoin's ability to maintain dominance without triggering renewed distribution.
