Representations of cryptocurrency Bitcoin are seen in this illustration taken November 25, 2024.
Dado Ruvic | Reuters
Cryptocurrencies rose to start the year, rebounding from recent losses as investor optimism returned to the market.
The price of bitcoin rose 1% to $96,283.33 Thursday, bringing its new year gain to about 2.75% when counting trading from the Jan. 1 session. Earlier, it rose as high as $97,256.15.
The CoinDesk 20 index, a measure of the broader cryptocurrency market, advanced 3%. The token tied to Solana, the popular Ethereum competitor, led the gains with a nearly 7% increase. Crypto stocks Coinbase and MicroStrategy each climbed 3% as well.
Bitcoin rebounds to start the year
This year is expected to be a banner year for the crypto industry thanks 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.
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 post-election 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.
