The value of cryptocurrencies is experiencing an upswing once again, with various Bitcoin alternatives leading the charge on Thursday as investors boost their holdings at the start of the new year.
Bitcoin jumped as much as 2.9% to $97,526, while altcoins like Ether, XRP, and Dogecoin registered gains of over 4%. Solana saw an increase of up to 8.2% as of 11:49 am in New York.
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Read: Bitcoin rally fueled by Trump loses steam as year draws to a close [Dec 2024]
“As we step into the new year, investors are starting to diversify their portfolios by channeling funds into more speculative opportunities,” remarked Chris Newhouse, director of research at Cumberland Labs.
The promising start for cryptocurrencies this year can also be linked to the historical trend of digital assets thriving in the first quarter, according to Newhouse.
“Market trends suggest an ongoing shift in capital towards various thematic sectors,” Newhouse continued. “This seasonal momentum, coupled with improving macroeconomic conditions and heightened interest in narratives extending beyond BTC and ETH, acts as a strong tailwind for altcoins.”
Crypto stocks
Stocks related to cryptocurrency also witnessed gains on the first trading day of 2025. Coinbase climbed as much as 5.6%, MicroStrategy rose by 7.3%, and MARA Holding surged over 8% at its peak.
Although cryptocurrency prices are trending upward, they still fall short of the highs reached in December prior to the decline. This situation may be fueling some of the current buying activity, according to Strahinja Savic, head of data and analytics at FRNT Financial Inc.
“The recent rallies among altcoins align with the popular strategy in crypto of ‘buying the dip’ in anticipation of a sustained bull market,” Savic explained.
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“For many participants in the crypto market, the underlying factors supporting this bull run remain strong despite the market’s volatility.”
Many investors are hopeful for a more favorable regulatory environment for cryptocurrency this year, especially with Donald Trump’s impending presidency.
Altcoins that have faced scrutiny from the US Securities and Exchange Commission have seen substantial inflows following Trump’s election victory and his appointment of crypto-friendly figures to his administration.
Generally, altcoins are more volatile than Bitcoin, which can result in both larger gains and losses.
© 2025 Bloomberg
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