Bitcoin Holds Near $88,000 as Asian Markets Kick Off 2026; Momentum Hinges on Clearing $89,500

Bitcoin traded near $88,000 on Friday as markets eased into the first trading session of 2026, with holiday-thinned volumes keeping moves measured and investors positioning for a year driven by policy shifts and technology catalysts. Early risk appetite was most visible in Asia, where Hong Kong and South Korea led gains as technology and semiconductor shares extended a late 2025 bounce. Japan and mainland China remained closed for holidays, leaving liquidity light across the region.

Market participants are focused on whether Bitcoin can convert this calm into sustainable momentum after a choppy year-end. According to Company Mudrex, Mr. Akshat Siddhant, lead quant analyst at Company Mudrex, noted a meaningful shift in long-term holder behavior: "For the first time in months, the 30-day change in long-term holder supply has turned positive, rising by around 10,700 BTC, signalling renewed conviction among investors." He added that continued exchange outflows are reducing selling pressure and helping build momentum.

Technically, Mr. Siddhant indicated that if Bitcoin can clear the $89,500 resistance, a decisive advance toward the $100,000 mark becomes more likely, while $87,000 has emerged as a strong support level. Traders will therefore be watching short-term order flow and open interest to gauge the conviction behind any breakout attempt.

Market snapshot at the open showed Bitcoin at $88,574 (up 1.2%), Ether at $3,009 (up 1.2%), and XRP at $1.87 (up 2%), with a total crypto market cap near $3.08 trillion (up 1.2%). Across equity futures, S&P 500 futures and Nasdaq futures rose as investors carried over year-end strength in big technology names — a rally that has roots in the AI trade and continued appetite for data center and advanced chip exposure.

Macro and political risks remain key influences. Markets are recalibrating expectations for Federal Reserve policy after delayed US data and an extended government shutdown. Traders price only a modest probability of a rate cut this month and see perhaps one more reduction by June. Politics adds another layer of uncertainty: Mr. Donald Trump is expected to announce a replacement for Fed Chair Mr. Jerome Powell later this month, a development investors view as a potential source of volatility for both risk assets and rates.

Commodities and currencies reflected the broader risk-on tilt: spot gold and silver extended strong runs, and the US dollar started the year on the back foot after its sharp annual drop. As liquidity thins during holiday windows, short-term moves may be muted, but the combination of on-chain signals, technical levels around $89,500 and $87,000, and evolving macro policy make the early weeks of 2026 crucial for shaping the next medium-term phase of the crypto market.

This piece originally appeared on Cryptonews.