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

Bitcoin, Ethereum, and XRP on the Rise

In early 2026, the crypto world is buzzing with activity. Bitcoin, Ethereum, and XRP are all on the rise.

• Bitcoin: Up approximately 7%
• Ethereum: Up nearly 9%
• XRP: Seeing significant gains

Key Factors Driving the Surge

Experts attribute the surge to several key factors:

1. End of Tax-Loss Harvesting: Reduced selling pressure has facilitated price rebounds.
2. Bitcoin ETF Flows: Significant inflows since October have boosted demand.
3. Looser Monetary Policy: Potential for a more dovish Federal Reserve chair could make crypto more attractive.
4. Technical Relief Rally: After a 35% drop from October highs, a bounce was expected.
5. Venezuela Developments: Potential lowering of oil prices could ease inflation and give the Fed more room to cut rates.

Bitcoin's Resistance Levels

Despite the gains, Bitcoin still faces resistance at:

• $94,500
• $100,000

Recent price action:

• Dropped from $94,300 to $91,200
• Rebounded after news that MSCI would keep a certain strategy in its index
• Currently hovering near $92,000

Traders are watching closely to see if Bitcoin can reclaim and hold above $94,000.

Crypto Fear & Greed Index

The Crypto Fear & Greed Index has jumped 22 points since the start of 2026, reaching 41. This is its highest level since October 2025, indicating a significant shift in market sentiment.