Crypto markets have posted a solid start to 2026, with Bitcoin climbing from around $87,000 to approximately $93,000 and Ether rising from roughly $2,970 to $3,200 over the weekend, according to market commentary from Laser Digital. The firm attributes the move to a combination of fading year-end tax-loss harvesting pressure and fresh capital deployment in January.
Institutional demand is showing signs of recovery, with spot Bitcoin ETFs recording inflows on January 2 after consecutive outflows through much of December. Derivatives activity reinforces the bullish tone, with roughly 3,000 lots of January-end Bitcoin call options traded on the final day of December, suggesting expectations for higher prices.
Price action has followed a pattern of strong performance during Asian trading hours with weaker follow-through in US sessions. Laser Digital notes that a shift in this dynamic would be an important market signal, and from a technical perspective, $95,000 is a key resistance level for Bitcoin. A decisive break above could trigger further upside momentum.
Macro factors are now firmly in focus, with a flurry of US labor market data culminating in Friday's non-farm payrolls report. Consensus expects headline job gains of around 55,000 and an unemployment rate of 4.5%. Laser Digital expects the unemployment rate to matter more than the headline number, as a weaker-than-expected report could push yields lower as markets reprice monetary policy.
Broader sentiment has improved, with Petr Kozyakov, co-founder and CEO of Mercuryo, noting investors are returning to crypto as they position for the year ahead, adding "digital gold" to portfolios. He highlighted renewed strength in Bitcoin alongside gains in Ethereum and Solana, noting that while sentiment weakened late last year, fundamentals remain intact.
The week is packed with crucial events. Bank of America has opened its advisory spigot, allowing advisers across its Private Bank, Merrill, and Merrill Edge to recommend several crypto ETPs for client portfolios starting January 5, removing prior asset thresholds. In a December note, Merrill's Chris Hyzy framed a modest allocation of 1% to 4% in digital assets as appropriate for certain investors.
On January 7, Ethereum undergoes its second "Blob Parameter Only" upgrade (BPO2), increasing the per-block blob target and maximum to 14 and 21, respectively. This incremental move is designed to expand rollup data throughput, which could pressure data availability fees lower, potentially reducing end-user transaction costs on Layer 2 networks.
Other notable events include a scheduled token unlock for Hyperliquid's HYPE token on January 6, where team members are set to receive an initial 1.2 million HYPE allocation valued at roughly $31.2 million. Stellar is also scheduled to upgrade its testnet to Protocol 25, "Stellar X-Ray," on January 7, with a mainnet vote slated for January 22, introducing foundational privacy infrastructure using zero-knowledge cryptography.
Geopolitical tensions remain a background risk, with markets reacting to the capture of Venezuelan President Nicolás Maduro by US forces over the weekend. Furthermore, rates politics loom as a macro overhang, with former President Trump stating he will name his pick to succeed Fed Chair Jerome Powell "early next year," a process that has become a live market variable. At press time, the total crypto market cap stood at $3.12 trillion.
