After a prolonged slump in autumn 2025, investors are regaining confidence at the start of the new year. The crypto market is showing early signs of stabilization, even as global political tensions remain elevated. On January 6, total crypto market capitalization rose by nearly 2% to around $3.2 trillion. Bitcoin and many altcoins gained between 2% and 5%, with Ripple (XRP) and Sui standing out as top performers, each up more than 10%.
The rally is largely driven by institutional demand. On January 5, more than $865 million flowed into crypto index funds and ETFs — the highest daily inflow since November 2025. Earlier, stablecoin issuer Tether purchased roughly $780 million worth of Bitcoin, further supporting market sentiment
Meanwhile, the US military intervention in Venezuela and the arrest of President Nicolás Maduro have increased volatility across global markets. Investors have traditionally sought safety in gold and silver, both of which are trading higher.
Because Bitcoin operates independently of nation-states, it is increasingly viewed as a safe-haven asset during geopolitical crises. Attention is also turning to Venezuela’s political future, where opposition leader María Corina Machado, a known Bitcoin supporter, is moving closer to the center of power.
Looking ahead, market direction will depend heavily on US monetary policy. A weaker US dollar is currently supporting cryptocurrencies, but the coming days will be critical. Fresh US industrial data will be released on January 7, followed by the publication of the Federal Reserve’s meeting minutes on January 8, which investors hope will provide signals of potential rate cuts.
