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As the new year begins, the crypto market is experiencing a remarkable resurgence, with many altcoins passing through. Bitcoin (BTC) in operation. Bitcoin recently saw an increase of up to 2.9%, reaching $97,526, while other cryptos such as Ethereum (ETH), XRP, and Dogecoin (DOGE) rose more than 4%.
Notably, Solana (SOL) rose a staggering 8.2%, reflecting renewed interest in digital assets beyond the leading cryptocurrency.
Altcoins And Crypto Stocks Gain Momentum In The New Year
Chris Newhouse, director of research at Cumberland Labs, noted that investors diversify their portfolios as they enter 2025. “Market participants have started allocating money to speculative narrative presentations,” he said, highlighting the shift to altcoins that may offer higher returns.
This trend is consistent with historical data showing that digital assets generally perform well in the first quarter, adding to the optimism surrounding current market volatility.
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Positive momentum is also supported by the concept of to circulate money in thematic sectors, which Newhouse describes as “the strong wind of altcoins.”
Investors appear to be capitalizing on seasonality, coupled with improving macroeconomic conditions and interest in issues that extend beyond Bitcoin and Ethereum.
This renewed enthusiasm is not limited to cryptocurrencies; crypto-dependent stocks are also benefiting from the market’s rise.
On the first trading day of 2025, Coinbase shares rose as much as 5.6%, while MicroStrategy and MARA Holdings rose by 7.3% and more than 8%, respectively, indicating growth. confidence among investors in the broader cryptocurrency sector.
Optimism Grows in 2025 Bull Market Amid Regulatory Changes
Despite the gains, it is important to note that cryptocurrency prices remain below the highs reached in December. Some market analysts suggest that this dip may fuel the current buying activity.
Strahinja Savic, head of data and analytics at FRNT Financial Inc., noted, “Rallies among alts like the one we’re seeing today are investors following the popular crypto mantra of ‘buy the dip’ in anticipation of a bull market continuation.”
For many crypto investors, it is a basic case of germination bull market it remains strong, despite natural fluctuations. Looking ahead, many investors are optimistic about a favorable regulatory environment for cryptocurrencies in 2025, especially with the expected presidency of Donald Trump.
Trump’s election victory and the appointment of crypto-friendly people to his administration has already led to a huge influx of altcoins that have been under scrutiny by the US Securities and Exchange Commission.
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The leading altcoin in the market, ETH, is trading at $3,660, which, despite the rally, is still about 25% below its record high of $4,878 set during the 2021 bull run.
Featured image from DALL-E, chart from TradingView.com