Cryptocurrencies start strong in 2026
The cryptocurrency market began 2026 with a decisive upward move, with prices across major assets soaring after expiration of approximately $1 million. $2.2 billion worth of Bitcoin and Ethereum options. The liquidation of this major derivatives event removed short-term pressure from the market, allowing spot prices to rise.
Bitcoin and Ethereum led the rally, setting the tone for a broad rally that quickly spread across large- and mid-cap cryptocurrencies.
Bitcoin and Ethereum lead the way
While the Bitcoin dollar regained strength near the $90,000 level, the Ethereum dollar posted even stronger relative gains, rising more than 5% on the day. This price action suggests that traders were cautiously positioning toward the end of the year, as option expirations act as a release valve for built-up momentum.
When the contract expires, the hedge flow unwinds, short-term positions are reset, and the door opens for new purchases.
Total crypto market capitalization in USD on Pat Day – TradingView
Widespread market participation signals improving sentiment
Unlike narrow rallies caused by a single asset, today’s movement was characterized by: wide participation:
- Major altcoins such as BNB, Solana, XRP, Cardano recorded solid daily gains
- High beta tokens including Dogecoin outperformed on a weekly basis
- Trading volumes increased, confirming true market engagement
Why option expiration dates matter to crypto prices
The expiration of large options often acts as a critical inflection point. When a contract expires:
- Dealers loosen hedges
- Reset delta exposure
- Changes in volatility dynamics
- Prices can move more freely
In this case, the resolution of the large overhang in derivatives allowed the bullish momentum to regain strength at the beginning of the new year.
What’s next for the crypto market?
While no single derivatives event guarantees that a trend will persist, the way cryptocurrencies move into 2026 sends important signals. Liquidity conditions are improving, risk appetite is being restructured, and traders appear more willing to deploy capital after the year-end reset.
If follow-through volume remains strong in future trades, this rally could be a constructive trend into the coming weeks.
