Crypto Prices Today (January 2): BTC, ADA, SUI, PEPE Show Gains as "January Effect" Takes Hold

Summary:
Today's crypto market demonstrates a positive recovery, diminishing the pressures that weighed heavily in December. Major cryptocurrencies like Bitcoin and several altcoins show notable gains, reflecting a shift in market sentiment.

Key Takeaways:

The total crypto market capitalization increased by 1.2%, reaching $3.08 trillion.
Bitcoin's price rose by 1.3% to $88,678 within 24 hours.
Leading altcoins experienced significant gains, with Cardano up 6.3%, Sui up 4.5%, and Pepe up a remarkable 21%.
The Crypto Fear & Greed Index moved from extreme fear to the fear zone, indicating improved market sentiment.
Analysts anticipate that Bitcoin could reach between $100,000 and $105,000 later in January if certain conditions are met.

Chart showing crypto prices today rise

Market Recovery Details

Crypto prices today show signs of recovery, alleviating some of the market pressures experienced during late December. As of January 2, the total market capitalization for cryptocurrencies rose by 1.2%, reaching approximately $3.08 trillion. Bitcoin is currently priced at $88,678, reflecting a 1.3% increase over the past 24 hours. The trading range has remained stable, which is a positive sign for traders.

When it comes to altcoins, the performance was even better. Cardano surged by 6.3% to $0.3553, Sui rose by 4.5% to $1.46, and Pepe made a striking gain of 21%, now priced at $0.0548.

Market sentiment has also improved. The Crypto Fear & Greed Index increased by eight points to 28, shifting from a state of extreme fear into a more cautious fear zone. This shift suggests that selling pressure has diminished since the end of December, although traders are advised to proceed with caution.

Data from CoinGlass indicates a cooling in market leverage. Open interest has decreased by 3.29% down to $128 billion, suggesting less speculative positioning, while liquidations over the last 24 hours dropped significantly, down 46% to $126 million. The average relative strength index across the crypto market was recorded at 56, suggesting a neutral momentum.

January Boost and Ongoing Volatility Risks

The recent rebound is attributed to traders returning to risk assets after the thin trading environment during the holiday season. Traditionally, the month of January has shown strong performance for both crypto and stocks, a trend commonly referred to as the "January effect."

One contributing factor to this trend is the return of capital into the market following tax-loss harvesting. Analysts note that many U.S. investors tend to engage in significant selling at year’s end, which often reverses in early January as they adjust their portfolios. According to Bitwise analysts, the late 2025 decline was seen as “mechanical rather than fundamental,” arguing that forced selling led to short-term mispricing.

Additionally, exchange-traded fund flows have started to stabilize. While Bitcoin and Ethereum ETFs experienced slight outflows in mid-December, these movements have lessened, and later sessions showed considerably lighter redemptions. Coinbase Institutional mentioned that many investors opted to pause trading instead of fully withdrawing, choosing to wait for clearer macroeconomic signals before increasing their positions.

Meanwhile, market sentiment has improved as broader economic pressures have lightened. With no significant geopolitical disruptions and increasing expectations regarding potential U.S. rate cuts in late 2026, there is a cautious return of risk appetite.

Short-Term Predictions and Analyst Perspectives

Looking ahead, analysts predict that Bitcoin will consolidate within the price range of $85,000 to $93,000, with a downside risk looming near $84,000 to $87,000 if market liquidity tightens again. Nonetheless, if Bitcoin can maintain its position above $90,000, there is potential for it to climb to between $100,000 and $105,000 later this month, especially with increasing ETF inflows and further stabilization in the macroeconomic landscape.

A breakthrough above the $100,000 mark would signal a resurgence in market momentum. Analysts from Grayscale, Bitwise, Coinbase Institutional, and Galaxy Research share a positive outlook for 2026, viewing the late-2025 correction, which saw Bitcoin finish the year approximately 6% lower, as a temporary setback rather than a reversal of the broader upward trend.