Bitcoin Surpasses $89,000 as Ethereum, XRP, and Dogecoin See Gains

Bitcoin rose above $89,000 on January 2, 2026, marking a sharp rebound in the crypto market amid a broader rally in altcoins. Ethereum increased by 1.82% to $2,987.99, while XRP and Dogecoin also saw gains of around 3% according to market analysis.

The broader market rally coincided with institutional activity, with XRP exchange-traded products absorbing $70 million in inflows as investors shifted capital out of Bitcoin. This trend highlights a growing bifurcation in investor preferences within the digital asset space.

At the same time, major institutional holders are increasing their Bitcoin exposure. Japanese-listed firm MetaPlanet holds 35,102 BTC, valued at $3.78 billion. However, the company's position is currently in paper loss due to Bitcoin's recent price pullback.

Why Did This Happen?

Market analysts point to structural changes in the crypto landscape. Haseeb Qureshi of Dragonfly Capital published a forecast predicting Bitcoin will exceed $150,000 by the end of 2026. This projection is based on institutional adoption, digital asset treasuries, and a shift toward Bitcoin as a primary collateral asset.

The market is also seeing a shift in capital allocation. XRP ETPs have seen a $70 million inflow as investors rotate into alternative digital assets. This trend reflects a broader shift in capital allocation, with investors seeking to diversify their exposure beyond Bitcoin.

How Did Markets React?

Bitcoin's price has been trading near $87,428, and its dominance remains at 57.53%. The rally has brought renewed attention to Bitcoin's potential as a store of value and a long-term investment.

Meanwhile, Ethereum has shown resilience, holding above key technical indicators. The ETH/BTC pair remains in consolidation near the 200-day exponential moving average, with analysts expecting a breakout in the coming weeks.

What Are Analysts Watching Next?

Analysts are monitoring Bitcoin's ability to break above $90,000. A sustained move beyond that threshold could signal a resumption of the bull trend. On the other hand, a failure to maintain support could lead to further consolidation.

Institutional interest in Mastercard has also increased, with several firms increasing their stakes in the financial technology company. This suggests a broader trend of institutional capital seeking exposure to traditional financial infrastructure alongside digital assets.

XRP is currently consolidating near $1.85, with technical indicators suggesting a potential rebound. TD Sequential has issued a buy signal, and liquidity analysis shows heavy volume between $1.80 and $1.90. This range is seen as a key equilibrium point for XRP.