Why does trading activity on Binance platform usually surge at the beginning of the year?
For years, the cryptocurrency market followed a predictable, regular cycle. Bitcoin dominated the scene, achieving record highs and capturing the largest share of global liquidity. During the "Bitcoin dominance" phase, other cryptocurrencies besides Bitcoin remained stagnant or even declined, as traders sold their holdings in pursuit of Bitcoin gains. Only after Bitcoin stabilized in a sideways consolidation phase did capital return to the broader market, thus igniting the legendary "altcoin season".
But as we approach January 2026, this historical pattern has changed. We are currently witnessing a phenomenon once considered an anomaly in the market: Bitcoin and major alternative cryptocurrencies are rising in perfect synchrony. On January 5, 2026, Bitcoin briefly surpassed $93,000 USD, achieving gains of nearly 7% since the start of the year. At the same time, Ethereum's price rose above $3,200 USD, while Solana, XRP, and AI-powered cryptocurrencies such as Bittensor saw significant gains. This is not merely a sequence of events, but a synchronized expansion across the market.
Below is a deep analysis of why this cycle differs structurally, and why the era of "waiting for your turn" in cryptocurrency investing may now be over.
1. End of liquidity crunch: In previous cycles (2017 and 2021), the cryptocurrency market suffered what economists refer to as a "liquidity crunch." There was a limited supply of capital—mostly from early individual investors—and it had to be rotated like a zero-sum game. To buy an alternative cryptocurrency, investors often had to sell their Bitcoin holdings first.
Institutional investment in "asset baskets": By 2026, this barrier has been replaced with a "highway" for institutional capital. The adoption and remarkable success of spot ETFs for both Bitcoin and Ethereum have fundamentally changed how money enters the system. Multiple asset inflows: Institutional wealth managers such as Morgan Stanley and Fidelity are no longer limiting themselves to offering "Bitcoin" alone; instead, they are requesting and managing diversified digital asset ETFs. Parallel flows: When a pension fund or sovereign wealth fund allocates $500 million to cryptocurrencies today, they don’t wait for "turns"—they buy a weighted basket including Bitcoin and Ethereum, often simultaneously. This influx of new external capital allows both Bitcoin and alternative cryptocurrencies to rise together, as buying pressure no longer comes from the same limited group of individual investors.
2. Market maturity and the classification of "leading companies": One of the main reasons alternative cryptocurrencies lagged in the past was investor distrust. Historically, alternative cryptocurrencies were seen as high-risk speculative bets, with no real value unless the "safe" asset (Bitcoin) delivered its expected returns. Proven utility and Lindy effect: By 2026, the market has evolved into a "survival of the fittest" system. Major alternative cryptocurrencies are no longer considered experimental. Ethereum has solidified its position as the global settlement layer for real-world assets. Solana has proven its agility as a central hub for high-speed decentralized finance (DeFi) and decentralized physical infrastructure (DePIN) projects. Chainlink has become the indispensable "intermediate" infrastructure for global finance. Because these assets now have robust ecosystems, real revenue models, and regulatory compliance, they have earned the status of "leading companies." Investors are now approaching these cryptocurrencies with a long-term perspective similar to that of Bitcoin, reducing the impact of panic.
3. The rise of "discrimination" over "mania": In previous cycles, broad price increases in alternative cryptocurrencies were often a sign of "peak euphoria," the final frantic phase of a bubble where prices for everything—including worthless tokens—skyrocketed. In January 2026, the rise has become more selective, a trend analysts refer to as "market dispersion." Quality over quantity: While Bitcoin is rising, we don’t see every cryptocurrency in the market increasing in price. Instead, gains are concentrated in protocols with real utility. This synchronized movement indicates broad-based participation rather than speculative frenzy. Capital is flowing into these assets due to their fundamental strengths, not merely because Bitcoin’s price is rising.
4. Regulatory clarity as a catalyst: For years, the "sword of Damocles" loomed over alternative cryptocurrencies due to regulatory uncertainty in the United States. Many tokens were classified as "unregistered securities," pushing institutional investors away. A new era of legitimacy: By early 2026, the landscape has changed dramatically. Following the Genius Act and broader market structure legislation with bipartisan support, the rules for digital assets have become clearer than ever. Reduced regulatory risk: With the U.S. Securities and Exchange Commission adopting a more innovation-friendly stance and issuing clear guidelines for stablecoins, the existential threat that once loomed over large-cap alternative cryptocurrencies has disappeared. Financial integration: Major banks such as JPMorgan and Goldman Sachs now use blockchain-based deposit tokens and tokenization platforms. When legal risk is removed, alternative cryptocurrencies stop trading as "suspicious experiments" and begin trading as tech company stocks. This enables them to participate in "risk-on" market environments alongside Bitcoin and the S&P 500.
5. The role of stablecoins and 24/7 liquidity: Stablecoins have evolved into the "bridge" connecting the cryptocurrency market in 2026. With a total market capitalization approaching $1.2 trillion USD according to some forecasts, stablecoins like [currency name] provide instant, round-the-clock liquidity across all asset classes. In the past, moving funds from Bitcoin trading to an alternative cryptocurrency could take days due to banking delays or illiquid trading pairs. Today, the "blockchain economy" operates at the speed of light. If an institution sees an investment opportunity in an alternative cryptocurrency while Bitcoin is rising, it can execute the trade immediately using stablecoin reserves. This creates a more efficient market where price discovery happens in parallel rather than sequentially.
What does this mean for modern portfolio construction? It signals the end of the "sequential cycle"—the traditional strategy of "waiting for the altcoin season" is obsolete. Investors who remain neutral in the alternative market wait for Bitcoin’s rise to "end," exposing them to the risk of missing the main growth phase of the cycle. The new 2026 strategy: Embrace synchronicity: Build a diversified portfolio that includes Bitcoin (as a long-term hedge) and high-potential alternative cryptocurrencies (as technology investments) simultaneously. Focus on diversification: Don’t buy "the market"; buy the leading cryptocurrencies. The 2026 cycle rewards protocols with real users, revenue, and regulatory compliance. Monitor the ETH/BTC ratio: Although moving together, the ETH/BTC ratio is currently forming a long-term base, suggesting Ethereum may soon begin to outperform Bitcoin relatively, even as both continue to rise.
Conclusion: A healthier, more mature market: The concurrent rise of alternative cryptocurrencies alongside Bitcoin is definitive proof of the cryptocurrency market’s maturity. We are no longer in a world where one asset dictates the fate of thousands of others. Instead, we’ve entered an era of market expansion, where different sectors—from decentralized AI to tokenized finance—can thrive based on their unique strengths. As Bitcoin approaches the $100,000 threshold, it is no longer alone; it now leads a sophisticated digital economy worth trillions of dollars, fully ready to compete on the global stage.