Bitcoin is approaching $89,000 while the crypto market cap surpasses $3 trillion.
January 2, 2026
Bitcoin was trading at approximately $88,600 on January 2, residing within a constrained range of $85,000 to $90,000. The overall market capitalization of cryptocurrencies reached $3.08 trillion, marking a 1.2% increase from the day before. Bitcoin spot ETFs experienced their most challenging period in the past two months, observing a total outflow of $4.57 billion from November to December. Despite a turbulent end to 2025, the cryptocurrency managed to gain around 1.3% over a 24-hour period.
Throughout the past two weeks, Bitcoin’s price has been consolidating within a narrow range of $85,000 to $90,000. U.S. spot Bitcoin ETFs reported net outflows of $348.1 million on December 31. In December alone, the 11 spot ETFs recorded outflows totalling $1.09 billion, following $3.48 billion in November outflows. This signifies the largest redemption over a two-month period since the inception of these products in January 2024. Notably, Bitcoin’s price experienced a drop of approximately 20% during the November-December timeframe, coinciding with the outflows from the ETFs.
Ethereum, another popular cryptocurrency, was trading close to $3,000, having gained 1.5% over a 24-hour span. Alternative coins, or altcoins, displayed more significant percentage increases, with Cardano (ADA) rising by 6.3% and Dogecoin (DOGE) climbing by 7.1%.
The noteworthy aspect of the record outflows from ETFs is the diminishing interest from institutional investors towards the end of the year, despite Bitcoin concluding 2025 with a modest 6% decrease. Market volatility, as indicated by Bollinger Bands, reduced to its lowest level since July, hinting at a potential substantial price shift on the horizon. By the end of December, the total net assets of Bitcoin ETFs stood at $113.29 billion, showing a decline of 33% from the peak value of $169.54 billion in October. Despite the outflows in the latter part of the year, Bitcoin ETFs have amassed cumulative net inflows of approximately $56.9 billion since their introduction in January 2024.
Analysts interpret the current consolidation phase as institutional players positioning themselves strategically, rather than engaging in panic selling. The market is eagerly awaiting new catalysts in 2026. This stagnation in the market signals a calm before a potential storm as investors brace themselves for what lies ahead.
In a related development, Ethereum created a new milestone by processing a daily record of 1.9 million trades, while transaction fees dropped to $0.17. This showcases the growing interest and utilization of Ethereum’s network, indicating a positive trend for the cryptocurrency moving forward.
