{"id":46492,"date":"2026-01-02T11:36:36","date_gmt":"2026-01-02T11:36:36","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/02\/crypto-market-rally-today-heres-why-bitcoin-and-altcoins-are-going-up\/"},"modified":"2026-01-02T11:36:36","modified_gmt":"2026-01-02T11:36:36","slug":"crypto-market-rally-today-heres-why-bitcoin-and-altcoins-are-going-up","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/01\/02\/crypto-market-rally-today-heres-why-bitcoin-and-altcoins-are-going-up\/","title":{"rendered":"Crypto market rally today: here\u2019s why Bitcoin and altcoins are going up"},"content":{"rendered":"
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The crypto market rally resumed today, Jan. 2, as investors bought the recent dip. Bitcoin price rose to over $88,500, while Ethereum jumped by $3,000. The market capitalization of all tokens jumped by 1.35% to over $3 trillion.<\/p>\n

Most altcoins were in the green, with Story (IP) rising by 30%. Pepe token jumped by 25%, while Aerodrome Finance (AERO), Immutable (IMX), Filecoin (FIL), Maple Finance (SYRUP), and Render (RNDR) soared by over 10%.<\/p>\n

Crypto market rally today | Source: CMC<\/em><\/figcaption><\/figure>\n

Crypto market rally rose as investors bought the dip<\/h2>\n

One potential reason why the crypto market rally is happening is that investors are buying the dip. Bitcoin remains 30% below its highest point in 2025, while Ethereum has plunged by 40%. Other top tokens have also dipped by double digits from last year\u2019s high. It is common for investors to buy the dip after an asset crashes by double digits. <\/p>\n

The rebound is also happening as investors anticipate the so-called January Effect. The January Effect is a phenomenon where financial assets rise in January as investors start to buy after selling in December as part of tax-loss harvesting.<\/p>\n

Rising futures open interest<\/h2>\n

The crypto rally is also happening as the futures open interest start rising. Data compiled by CoinGlass shows that the interest has jumped by 2.16% in the last 24 hours to $130 billion. Rising open interest is a sign that investors are deploying leverage, which is a bullish sign.<\/p>\n

Still, the interest remains much lower than last year\u2019s high of over $255 billion. It has remained under pressure since the large liquidation event<\/a> that happened on October 10, when over 1.6 million traders were wiped out. <\/p>\n

The rising futures open interest is happening as liquidations ease. Data compiled by CoinGlass shows that the 24-hour liquidation dropped by 40% to $141 million. 102,114 traders were liquidated in this period, with Bitcoin shorts worth $23.5 million being wiped out.<\/p>\n

Potential risk-on sentiment ahead of Fed cuts and IPOs<\/h2>\n

The crypto market rally is also happening as investors embrace a risk-on sentiment as the year starts. Indeed, data shows that global stocks started the year well, with the Hang Seng Index rising by 2.70%, while the Sensex Index soared by 30 basis points. Futures tied to the Nasdaq 100 and S&P 500 indices were also in the green. <\/p>\n

Market participants are bracing for a strong year, with most Wall Street analysts predicting that the S&P 500 Index will jump to $7,500 and above this year. <\/p>\n

The potential catalysts for the markets are Federal Reserve interest rate cuts<\/a>, IPOs, including Anthropic, SpaceX, and Kunluxin<\/a>, and strong earnings. Therefore, this optimism is helping to boost the crypto market.<\/p>\n

Potential dead cat bounce or bull trap<\/h2>\n

Still, the main risk is that the ongoing rally of Bitcoin and altcoins could be a dead-cat bounce. Besides, the holiday mood is continuing, with the 24-hour volume plunging by 25% to $64 billion. In normal times, the volume in the crypto market is usually over $100 billion.<\/p>\n

A dead-cat bounce is a situation where assets like stocks and cryptocurrencies rebound briefly and then resume the downward trend as the momentum fades. <\/p>\n

The odds of a bull trap are elevated because past attempts to rebound have faced substantial resistance, with large companies like Wintermute and Binance selling. <\/p>\n

Also, Bitcoin and other altcoins have formed a bearish pennant pattern and remain below all moving averages, pointing to further declines. <\/p>\n

The post Crypto market rally today: here\u2019s why Bitcoin and altcoins are going up<\/a> appeared first on Invezz<\/a><\/p>\n

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The crypto market rally resumed today, Jan. 2, as investors bought the recent dip. Bitcoin price rose to over $88,500, while Ethereum jumped by $3,000. The market capitalization of all tokens jumped by 1.35% to over $3 trillion. Most altcoins were in the green, with Story (IP) rising by 30%. Pepe token jumped by 25%, <\/p>\n","protected":false},"author":1,"featured_media":46493,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-46492","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=46492"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/46492\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/46493"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=46492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=46492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=46492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}