Cryptocurrencies rose to start the year, rebounding from recent losses as investor optimism returned to the market.
The price of bitcoin rose 3% to $97,234.80 Thursday, bringing its new year gain to nearly 4% when counting trading from the Jan. 1 session.
The CoinDesk 20 index, a measure of the broader cryptocurrency market, advanced more than 3%. The token tied to Solana, the popular Ethereum competitor, led the gains with a nearly 7% increase. Crypto stocks Coinbase and MicroStrategy climbed 3.5% each.
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 Congress will pass its first ever crypto focused legislation, which could be centered around stablecoins or market structure.
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Traders are also keen to see the crypto public equity markets open up with more initial public offerings and progress on a potential national strategic bitcoin reserve.
Crypto assets slid into the end of 2024. Although the postelection rally that sent bitcoin to new records above $100,000 had fizzled, the flagship cryptocurrency still ended the year up more than 120%. Long-term holders took some profits while others sold amid renewed uncertainty about the direction of Federal Reserve interest rate cuts in 2025.
