Crypto Market News – January 5, 2026
1. Bank of America’s Major Move into Crypto
Bank of America is now advising clients to allocate up to 4% of their portfolios to digital assets, including Bitcoin and other cryptocurrencies.
This marks a significant shift for one of the largest U.S. banks, which previously maintained a cautious approach to crypto.
2. Market Impact and Institutional Momentum
The announcement has sparked strong $BTC $ETH
momentum in the Bitcoin and broader altcoin market at the start of 2026.
Analysts and market watchers see this as a gateway for increased institutional capital inflow, potentially unlocking billions or even trillions of dollars for the crypto sector.
3. Regulatory Optimism and Broader Trends
Rising regulatory optimism in the U.S. is also contributing to the rally, with new bills and positive sentiment supporting digital asset adoption.
The move by Bank of America is seen as a historic pivot, encouraging more mainstream and institutional participation in crypto markets.
Summary:
Bank of America’s decision to recommend up to 4% crypto allocation for clients is a major catalyst for the current rally, signaling growing acceptance and institutional interest in digital assets as 2026 begins.