Bitcoin has recently shown signs of resurgence, sparking debates about whether the bear market is finally behind us. On Friday, January 2nd, 2026, Bitcoin's price rallied, reaching a multi-week peak of $91,000. However, this upward movement faced resistance, and the price retraced to around $90,000.
As of today, January 3, 2026, Bitcoin is trading close to $90,000. This comes after a slight dip below $90,000 due to reports of explosions in Venezuela, which were linked to potential strikes by the United States. The reports caused immediate volatility, pushing the price down from $90,500 to $89,500 in under an hour.
Despite the geopolitical concerns, the crypto market, in general, has started 2026 positively, with Bitcoin's climb above $90,000 triggering a rally across altcoins. The total crypto market capitalization has surpassed $3.07 trillion, with most major assets showing gains. This positive trend is attributed to strong buying activity, increased accumulation by large investors (whales), and improving on-chain signals throughout the market.
Several altcoins have outperformed Bitcoin in the past 24 hours. For instance, PEPE saw a jump of 25%, SUI rose by 14%, and DOGE increased by 13%. Other altcoins like ADA, AAVE, SHIB, and XRP also experienced gains, indicating renewed interest across the board. Ethereum has also shown strength, trading near $3,124, with the altcoin market cap surging to $214.86 billion. A notable development is XRP overtaking BNB to become the third-largest cryptocurrency by market capitalization, driven by whale accumulation and its growing role as a hedge amid global uncertainties.
However, some analysts suggest caution. Bitcoin's struggle to decisively break the $90,000 mark has been ongoing for about a month, characterized by swings around this level amidst thin holiday trading. These movements often lack the necessary volume for a sustained breakout. QCP Capital noted a sharp drop in open interest following a recent options expiry, suggesting many traders are on the sidelines. They also pointed out that rising prices could force dealers to hedge, amplifying price moves but requiring sustained spot demand for a real breakout.
Looking ahead, the market anticipates clearer crypto regulations in the U.S. and increased institutional adoption, potentially marking a turning point for crypto in 2026. While volatility is expected to remain a factor, the current rally reflects improving fundamentals and a return of confidence among investors. The sentiment suggests that sellers are stepping back, whales are accumulating, and overall market confidence is gradually recovering.
In conclusion, while Bitcoin's return to $90,000 is a positive sign, it's essential to consider the factors influencing its price and the broader market. Geopolitical events, technical factors, and market sentiment all play a role in Bitcoin's price. Whether this rally signifies the end of the bear market remains to be seen, but the current indicators suggest a cautiously optimistic outlook for the crypto market in 2026.
