In early 2026, the crypto world is buzzing with activity. Bitcoin, Ethereum, and XRP are all on the rise. Bitcoin has climbed about 7%, while Ethereum is up nearly 9%. Many other altcoins are also seeing big gains. So, what's behind this surge?

Experts point to several key factors. First, the end of tax-loss harvesting has reduced selling pressure. This has made it easier for prices to rebound. Second, there's been a big turnaround in Bitcoin ETF flows. Some of the largest inflows since October have boosted demand. Third, there's talk of looser monetary policy. With record U. S. debt levels, a more dovish Federal Reserve chair might be appointed. This could make crypto more attractive.

Another factor is the technical relief rally. After a rough patch with a 35% drop from October highs, a bounce was expected. Lastly, developments in Venezuela could lower oil prices. This might ease inflation and give the Fed more room to cut rates.

Despite the gains, Bitcoin still faces resistance at $94, 500 and $100, 000. There was a recent drop from $94, 300 to $91, 200, but prices rebounded after news that MSCI would keep a certain strategy in its index. Now, Bitcoin is hovering near $92, 000. Traders are watching closely to see if it can reclaim and hold above $94, 000.

The Crypto Fear & Greed Index has also jumped 22 points since the start of 2026. It's now at 41, its highest level since October 2025. This shows how quickly sentiment can shift in the crypto world.

Crypto Market Bounce: What's Driving Bitcoin, Ethereum, and XRP Up in 2026?

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