Bitcoin's Big Start to the Year: What's Driving the Rally?

Bitcoin is making a strong start to the year, climbing to a one-month high. This surge comes as traders are shifting back to riskier investments, following recent political events. It's a change from late 2025, when crypto prices often dropped during U. S. trading hours. The Coinbase Bitcoin Premium Index shows a sharp rise in the first week of 2026. This index tracks the price difference between bitcoin on Coinbase and the global market average. It's seen as a sign of U. S. demand, institutional activity, and market sentiment. On Jan. 1, the index hit its lowest point in nine months, but it's now improving.Bitcoin has rallied nearly 1% since U. S. markets opened on Monday, reaching close to $94, 000. Other cryptocurrencies like ether and XRP are also up, while solana has seen a smaller gain. Dogecoin is down slightly over the past 24 hours but is still up 20% over the past week. The $95, 000 mark is a key level for bitcoin. If it stays above this level, systematic buyers might step in and add to the momentum. This could be a turning point after a quiet holiday period. Digital asset treasury companies, which had a tough second half of 2025, are seeing big gains. Strive, for example, has increased its bitcoin holdings, now valued at roughly $708 million.