Crypto Markets Rally as Capital Flow Increases, with Focus on U.S. Jobs Data: Laser Digital

Crypto markets have made a promising start to the new year, buoyed by increased capital deployment and a shift in market sentiment, according to Laser Digital's latest market report.

Key Takeaways

Bitcoin and Ether experienced significant price increases at the beginning of January.
A recovery in institutional demand is evident, particularly with spot Bitcoin ETFs recording inflows.
Price movements are primarily driven by Asia’s trading hours, with US sessions showing less strength.
Upcoming U.S. labor market data could significantly impact market dynamics.
Overall sentiment in the cryptocurrency space has improved, with investors becoming more optimistic about the year ahead.

Crypto Market Insights

Strong Start to the Year

According to Laser Digital, the cryptocurrency markets have started the year on a positive note, driven by renewed capital inflow and improving investor sentiment. Over the weekend, Bitcoin surged from approximately $87,000 to around $93,000, while Ether climbed from about $2,970 to $3,200. By earlier today, Bitcoin was trading near $92,966, reflecting a gain of roughly 1.8% over the past 24 hours, following a turbulent December.

Laser Digital suggests that this market movement is likely a result of a mix of end-of-year activity and new market positioning. The pressure from selling often associated with year-end tax-loss harvesting seems to have subsided, allowing new capital to flow back into the market in January.

Institutional demand also appears to be recovering, as evidenced by spot Bitcoin ETFs registering inflows on January 2, reversing a trend of consecutive outflows throughout December.

Market Dynamics: Asia vs. U.S.

Recent price actions have shown a familiar trend, with strong performance during Asian trading hours and weaker momentum during U.S. sessions. According to Laser Digital, a shift in this pattern would be an important signal for the markets. An increase in strong U.S. sessions could attract sidelined investors back to risk assets. Technically, the $95,000 level is identified as a crucial resistance point for Bitcoin. A decisive move above this level could lead to additional upward momentum, while failure to break through may keep prices fluctuating in the short term.

Upcoming Jobs Data in Focus

Macro factors are currently in the spotlight, with significant U.S. labor market data set to be released this week, culminating in Friday’s non-farm payrolls report. The consensus prediction anticipates a headline gain of about 55,000 jobs and an unemployment rate of 4.5%.

Laser Digital emphasizes that the unemployment rate will likely have a greater impact than the jobs number itself, mirroring recent market trends. With little expectation of rate cuts in January, a weaker-than-expected report could lower yields as markets adjust their views on monetary policy. Conversely, a rising unemployment rate could put pressure on risk assets, as investors are generally expecting a "Goldilocks" scenario for the U.S. economy.

Positive Sentiment Despite Challenges

Overall sentiment in digital asset markets is improving. Petr Kozyakov, co-founder and CEO of Mercuryo, noted that investors are increasingly turning to cryptocurrency as they prepare for the upcoming year. "The cryptocurrency markets are thriving, as investors incorporate digital gold into their portfolios," Kozyakov stated, highlighting the renewed strength of Bitcoin alongside gains in Ethereum and Solana.

He mentioned that, although market sentiment weakened towards the end of last year, the underlying fundamentals remain strong, supported by the growth of the market's infrastructure and increasing liquidity, particularly in stablecoins.

While geopolitical tensions continue to pose a risk, the market's reaction thus far has been relatively calm. Laser Digital warns that the potential for spillover effects remains, especially in already stressed regions, keeping macroeconomic uncertainty in play as we head further into 2026.