Representations of the cryptocurrency Bitcoin are seen in this illustration taken on November 25, 2024.
Dado Ruvic | Reuters
Cryptocurrencies rose at the start of the year, rebounding from recent losses as investor optimism returned to the market.
The price of Bitcoin rose 3% to $97,234.80 on Thursday, bringing its new year’s gain to nearly 4% counting trading from the Jan. 1 session.
The CoinDesk 20 Index, a measure of the broader cryptocurrency market, rose more than 3%. The token linked to Solanathe popular Ethereum competitor, led the gains with an increase of almost 7%. Crypto Stocks Coinbase And MicroStrategy climbed 3.5% each.
Bitcoin rebounds to start the year
This year is expected to be a banner year for the crypto industry due to a more favorable regulatory environment promised by President-elect Donald Trump. Investors are hoping that Congress will pass its first-ever crypto-focused legislation, which could be focused on stablecoins or market structure.
Traders also want to see crypto public equity markets open up with more initial public offerings and progress on a potential national strategic Bitcoin reserve.
Crypto assets slipped through the end of 2024. Although the post-election rally that propelled Bitcoin to new records above $100,000 fizzled, the flagship cryptocurrency still finished the year up more than 120%. Long-term holders took some of the profits while others sold amid renewed uncertainty about the direction of the Federal Reserve’s interest rate cuts in 2025.
