Why Bitcoin, Ethereum, XRP Are Surging In Early 2026

Global cryptocurrency markets have gained momentum at the start of 2026 as Bitcoin (CRYPTO: BTC) broke above key technical levels, reigniting speculation over a potential move back toward $100,000.

What Happened: Entrepreneur and Bitcoin investor Lark Davis said the crypto market has staged a strong rebound to begin 2026, adding more than $250 billion in total market capitalization.

Bitcoin is up about 7%, Ethereum (CRYPTO: ETH) has gained nearly 9%, major altcoins are posting double-digit gains, and meme coins have surged sharply.

Davis attributed the rally to five main drivers:

• The end of tax-loss harvesting, which removed December selling pressure and allowed rebound buying.
• A sharp turnaround in spot Bitcoin ETF flows, with some of the largest inflow days since October boosting demand.
• Expectations of looser monetary policy, as President Donald Trump is likely to appoint a more dovish Federal Reserve chair amid record U.S. debt levels.
• A technical relief rally following a roughly 35% drawdown from October highs, making a bounce statistically likely.
• Developments in Venezuela that could pressure oil prices lower, ease inflation and give the Fed more room to cut rates.

Together, easing sell pressure, renewed institutional inflows and a more supportive macro backdrop have aligned for a strong start to 2026. Key resistance levels for Bitcoin remain $94,500 and the psychological $100,000 mark.

Why It Matters: In a separate post, Davis noted Bitcoin was recently rejected near $94,000, printing its first red daily candle of the year after a sharp 3% drop at the New York open.

Prices slid from about $94,300 to $91,200 within hours before rebounding roughly 2% on news that MSCI would keep Strategy in its index.

Bitcoin is now hovering near $92,000, with traders watching closely to see whether it can reclaim and hold above $94,000 or face another rejection as U.S. markets open.

Meanwhile, the Crypto Fear & Greed Index has jumped 22 points since the start of 2026 to 41, its highest level since October 2025, underscoring how quickly sentiment has shifted as bullish momentum returned.

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