The global cryptocurrency market is back in the green, signaling renewed investor confidence after a period of cautious trading. The total market capitalization climbed 0.87% to $3.04 trillion, driven by gains in Bitcoin, Ethereum, and a majority of top altcoins. Analysts point to a combination of strong institutional demand, evolving US regulations, and emerging crypto policies in Asia as key factors behind today’s positive momentum.
Bitcoin nears $90,000 amid institutional interest
Bitcoin (BTC) rose 0.52% to trade at $89,850.75, reclaiming levels near the $90,000 mark. Its market capitalization reached $1.79 trillion, with daily trading volume hitting $53.2 billion, reflecting a healthy trading appetite.
According to CoinSwitch Markets Desk, BTC initially dipped to $87,000 due to global geopolitical uncertainties and over $1 billion in long liquidations affecting both Bitcoin and Ethereum. However, the cryptocurrency quickly recovered toward $89,000 after buyers entered the market, aided by remarks from former US President Donald Trump at the Davos forum. Trump expressed his hope to sign digital-asset market structure legislation “very soon,” signaling a possible clearer regulatory direction in the United States.
Analysts highlight that Bitcoin faces key support around $88,000, while resistance stands near $90,500. “Downside liquidity near $88,000 has largely been absorbed, and significant short positions remain between $90,000–$92,000,” CoinSwitch noted, suggesting the potential for further upside if BTC sustains above $90,500.
Ethereum surges past $3,000
Ethereum (ETH) outperformed Bitcoin, climbing 1.28% to $3,016.87. With a market cap of $364.1 billion and daily trading volume of $34.5 billion, Ethereum’s growth indicates rising interest in its smart contract ecosystem. The platform continues to attract both developers and investors, underlining its status as the primary backbone for decentralized applications and DeFi projects.
Market watchers are observing Ethereum’s relative strength as a possible signal for renewed bullish trends in altcoins, especially as institutional players diversify beyond Bitcoin.
Altcoins show broad-based gains
The altcoin market also recorded strong performance. Solana (SOL) jumped 1.87% to $130.09, while XRP rose 2.45% to $1.95 amid speculation around spot XRP ETFs. Binance Coin (BNB) gained 1.29% to $891.61, and Cardano (ADA) surged 1.78% to $0.3647.
Memecoins like Dogecoin (DOGE) climbed 1.17% to $0.1269, and TRON (TRX) edged up 0.44% to $0.2995. Meanwhile, major stablecoins maintained stability, with Tether (USDT) at $0.9990 and USDC at $0.9997, collectively reflecting a circulation of $74.4 billion.
This uptrend highlights the market’s growing appetite for riskier assets while investors still rely on stablecoins for liquidity management.
Regulatory clarity spurs market confidence
Several recent policy developments are fueling investor optimism. In the US, the Senate Agriculture Committee released a cryptocurrency bill text on Jan 21 ahead of a Jan 27 markup session. The legislation proposes giving the Commodity Futures Trading Commission (CFTC) primary oversight of spot digital asset markets, a shift that could redefine how cryptocurrencies are regulated.
Chairman John Boozman emphasized that while bipartisan support exists, negotiations continue, and amendments may be proposed during the markup session. The bill also introduces three registration categories for exchanges, brokers, and dealers under the CFTC. Analysts believe that a clear regulatory framework could encourage more institutional participation and reduce market volatility.
Meanwhile, in Asia, Vietnam has begun accepting cryptocurrency exchange license applications under a new pilot program. Firms must demonstrate at least 9.2 trillion Vietnamese Dong (~$400 million USD) in equity capital, with foreign ownership capped at 49%. Authorities will review ownership structures, personnel qualifications, and technological infrastructure, aiming to build a secure, scalable domestic crypto market. This step reflects a growing global trend of governments moving toward structured crypto oversight rather than outright bans.
Institutional confidence in Bitcoin remains strong. MicroStrategy purchased 22,305 BTC for $2.13 billion, marking its largest acquisition since November 2024. The firm now holds over 709,715 BTC, demonstrating long-term faith in digital assets despite short-term volatility.
In a different corner of the market, Trump Media & Technology Group announced plans for a digital token airdrop on February 2, 2026. Shareholders with DJT stock will be eligible through Crypto.com. While it hasn’t significantly impacted prices yet, the initiative underscores how celebrity-driven crypto projects continue to attract attention and engagement from retail investors.
What does this mean for the Crypto market?
Overall, the market is showing signs of renewed optimism. Bitcoin nearing $90,000 and Ethereum’s outperformance indicate that institutional and retail investors are returning cautiously. However, geopolitical uncertainties, regulatory negotiations, and liquidity patterns around key price levels suggest that volatility remains a key factor to watch.
Analysts suggest keeping an eye on resistance zones for BTC around $90,500–$92,000 and ETH near $3,050–$3,100. Should these levels hold, the market could see further momentum, potentially triggering a broader altcoin rally.
