In 2026, the cryptocurrency market ushered in a noticeable rebound, with Bitcoin leading the way. On Monday during Asian trading hours, Bitcoin rose over 1%, reaching a high of $93,000 at one point, climbing from $91,270 to $92,500. This marks the fifth consecutive trading day of gains, setting the longest winning streak since early October last year.
Mainstream cryptocurrencies also showed a strong upward momentum. According to CoinGecko data, Ethereum, XRP, and Solana all increased between 0.7% and 1%, indicating a synchronized market rally.
Regarding this phenomenon, Markus Thielen, founder of 10x Research and top crypto analyst, stated: "Market sentiment is clearly improving; Bitcoin and Ethereum are already entering a bull market phase." His team had shifted to a bullish outlook as early as late December after the options expiration.
What explains this shift? Markus Thielen explained that the common year-end "tax-loss selling" wave has subsided. This is a yearly practice among US investors—selling losing positions to offset capital gains on other assets, thereby reducing tax liabilities. As the new year begins, institutional investors regain flexibility in capital allocation, and risk assets once again become popular.
Looking back at December's trend, the entire crypto market was under long-term pressure, primarily due to this wave of tax-loss selling. US investors took advantage of the year-end window to liquidate losing positions, objectively exerting significant selling pressure on the market.