Crypto Surges 7-10% as BoA backs crypto; Kalshi raises $11B

Crypto markets rebound as Kalshi hits $11B valuation and banks broaden access to digital assets

Cryptocurrency prices were modestly higher on Friday (Jan. 2), with the total market capitalization rising about 0.7% over the past 24 hours to roughly $3.06 trillion. The uptick follows a volatile period for digital assets after a sharp sell-off late in 2025, even as Bitcoin previously reached an all-time high.

The last few months of 2025 saw roughly $1 trillion wiped from the broader crypto market. The drawdown came after much of the year was defined by a rally in assets such as bitcoin, supported by expectations that the U.S. would take a more supportive approach to crypto under President Trump’s pledge to make the country a crypto leader.

At the same time, parts of the U.S. financial system have been moving closer to digital assets. Major banks including Bank of America, as well as Wells Fargo and Vanguard, are opening distribution of crypto-related exposure to clients, alongside growing attention to spot Bitcoin ETFs. Forecasts cited in the market suggest Bitcoin held in ETFs could reach $180 billion to $220 billion in 2026, highlighting how traditional channels are increasingly shaping access and flows.

Coinbase Institutional said crypto markets are entering a new phase in 2026, arguing that structural shifts are reshaping trading activity, risk, and real-world adoption. The message underscores a broader theme emerging from 2025: while headline price moves remained volatile, infrastructure and distribution continued to evolve.

Outside spot crypto markets, the prediction-market space is also expanding as demand grows for hedging linked to macroeconomic data, weather, and politics. Kalshi, a U.S.-based event-trading platform launched in 2021, said it is launching hundreds of new tradable events and is lobbying for additional regulatory clarity.

Kalshi also reported that it secured $1.3 billion across two rounds and reached an $11 billion valuation. The company’s growth comes amid intensifying competition with blockchain-based Polymarket, a rivalry that became more prominent in 2025 as both platforms sought to serve U.S. users.

• Markets: Total crypto market cap rose about 0.7% to ~$3.06T in the last 24 hours.
• Context: A late-2025 sell-off erased about $1T in value despite Bitcoin’s earlier all-time high.
• Institutions: Large financial firms are expanding distribution, with increased focus on Bitcoin ETFs.
• Adjacent growth: Kalshi raised $1.3B across two rounds and reached an $11B valuation while expanding event offerings.

Together, the developments point to a market entering 2026 with mixed signals: price performance remains sensitive to macro conditions and sentiment, while institutional distribution and regulated event-driven markets continue to build out in parallel.