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 3% to $97,426.02 Thursday, bringing its new year gain to about 4% when counting trading from the Jan. 1 session.
The CoinDesk 20 index, a measure of the broader cryptocurrency market, advanced 4%. The token tied to Solana, the popular Ethereum competitor, led the gains with a 7.5% increase. Crypto stocks Coinbase and MicroStrategy climbed 4% and 5%, respectively.
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 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 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.