Bitcoin Price Teeters Near $90,000 as Early-2026 Rally Falters

Bitcoin traded near $93,700 on Tuesday, up about 1% over 24 hours and more than 7% since January. Ether rose nearly 2% to $3,224 and is up about 9% over the same period according to CoinDesk. XRP led large caps, jumping almost 13% in a day to $2.40 and nearly 29% on the week according to CoinDesk.

Bitcoin's aggressive uptrend at the start of 2026 has slowed, triggering a liquidation spree and net outflows of $243 million from U.S. spot Bitcoin exchange-traded funds on Tuesday.

The figures come as Bitcoin has pulled back from a weekly high over $94,000, dropping 1.7% on the day to just over $92,000.

The price of Bitcoin gained 2% over the past 24 hours to $89,400, with the largest crypto approaching the $90,000 level, which it has not held reliably since early December.

Why Did This Happen?

The rally follows dismal price action through late December, which saw tax-related selling and year-end book cleanups cap upside, particularly during U.S. hours. U.S.-based holders reportedly liquidated their crypto holdings at a loss to offset capital gains and reduce overall tax liability. Investors typically take losses on underperforming assets to lower the tax due on profitable sales.

That pressure has faded, allowing for a bounce, according to observers at Singapore-based QCP Capital. "Crypto's alignment with broader risk assets is looking less like a coincidence and more like a regime shift to start the year, helped by year-end tax loss harvesting fading and policy optionality back on the radar," the firm said in a market update Monday.

BTC's ongoing price rally is consistent with the positive mood on Wall Street. On Monday, U.S. stocks rallied as the U.S. military strike on Venezuela lifted oil shares, and renewed AI optimism lifted technology shares. BTC and the wider crypto market are known to closely follow trends in the technology shares.

How Did Markets React?

Bitcoin spot ETFs recorded an inflow of $697.25 million on Monday, marking the highest single-day inflow since early October. If these inflows continue and intensify, BTC could see a price rally according to FXStreet.

The inflows were distributed across six funds, with BlackRock's IBIT leading the group with the largest net inflows, the data showed. Offerings from Ark and 21Shares followed, while Fidelity's product also attracted inflows according to Crypto News.

Ethereum-linked products also showed improvement during the period. Spot ether ETFs ended a four-day stretch of outflows, reporting combined net inflows. Newly launched spot ETFs tied to XRP, Solana and Dogecoin each reported positive flows for the session, signaling broader participation across cryptocurrency-linked funds.

What Are Analysts Watching Next?

The first and most immediate hurdle has already been cleared: avoiding another large-scale market dislocation like the Oct. 10 liquidation event that wiped out at least $20 billion in crypto futures positions in a single day according to TradingView. Fears that major market makers or hedge funds might be forced to unwind positions weighed on prices late last year, but those concerns have faded as no major wind-downs materialized by year-end.

"If it were going to happen, it probably would have happened by now," Hougan wrote according to TradingView. "While there's no guarantee, any firm winding down operations would most likely have tried to wrap up by year's end. One of the reasons I think we've rallied to start this year is that investors have put Oct. 10 in the rearview."

The second hurdle centers on U.S. legislation, specifically the passage of the crypto market structure bill known as the Clarity Act according to TradingView. The bill is moving through Congress, with a Senate markup targeted for Jan. 15, though disagreements remain around issues such as DeFi oversight, stablecoin rewards, and political conflicts of interest.

In the Senate, the Banking Committee is responsible for the securities-law half of the bill, while the Agriculture Committee works on the commodities-law half, with both publishing drafts in the fall.

Crypto markets opened 2026 with early gains, but sustaining the rally will depend on clearing these key hurdles, according to Bitwise Chief Investment Officer Matt Hougan.

Despite the positive momentum, concerns about low liquidity persist, making the market vulnerable to sharp price movements.

Bitcoin BTC $91,554.03 and the broader crypto market have begun 2026 strongly, with analysts linking the buoyant mood to fresh new-year allocations, safe-haven bids, and other factors.

Bitcoin traded near $93,700 on Tuesday, up about 1% over 24 hours and more than 7% since January according to CoinDesk. Ether ETH $3,257.64 rose nearly 2% to $3,224 and is up about 9% over the same period according to CoinDesk.

XRP $2.2834 led large caps, jumping almost 13% in a day to $2.40 and nearly 29% on the week, while Solana SOL $139.21 rose 12% and DOGE $0.1467 gained about 23% over the past week according to CoinDesk.