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As the novel year begins, the cryptocurrency market is experiencing a significant resurgence, with many altcoins overtaking the cryptocurrency market. Bitcoin (BTC) in terms of performance. Bitcoin recently surged as much as 2.9% to reach $97,526, while alternative cryptocurrencies such as Ethereum (ETH), XRP and Dogecoin (DOGE) increased by over 4%.
Notably, Solana (SOL) rose an impressive 8.2%, signaling renewed interest in digital assets beyond the leading cryptocurrency.
Altcoins and cryptocurrency stocks are gaining momentum in the novel year
Chris Newhouse, Director of Research at Cumberland Labs, excellent that investors are diversifying their portfolios as we enter 2025. “Market participants have started to allocate capital to represent more speculative narratives,” he said, emphasizing the shift towards altcoins, which can offer higher returns.
This trend is consistent with historical data showing that digital assets often perform well in the first quarter, increasing optimism about current market dynamics.
The positive impulse is further supported by the concept capital rotation on thematic sectors, which Newhouse describes as a “strong tailwind for altcoins.”
Investors appear to be taking advantage of seasonal strength combined with improving macroeconomic conditions and interest in narratives beyond Bitcoin and Ethereum.
This renewed enthusiasm is not restricted to cryptocurrencies; Cryptocurrency-dependent stocks are also benefiting from sturdy market conditions.
On the first day of trading in 2025, Coinbase shares rose as much as 5.6%, while MicroStrategy and MARA Holdings saw gains of 7.3% and over 8%, respectively, indicating rising growth trust among investors in the broadly understood cryptocurrency sector.
Optimism about a bull market in 2025 is growing due to regulatory changes
Despite the increases, it should be noted that cryptocurrency prices remain below the highest levels recorded in December. Some market analysts suggest this decline could fuel current purchasing activity.
Strahinja Savic, head of data and analytics at FRNT Financial Inc., noted: “Great alt-stock rallies like the one we’re seeing today are investors following the popular crypto mantra of ‘buy the dip’ in anticipation of the bull market continuing.”
For many cryptocurrency investors, this is the entry-level beginner’s case bull market remains solid despite the inherent volatility. Looking ahead, many investors are sanguine about a more favorable regulatory environment for cryptocurrencies in 2025, especially with Donald Trump’s anticipated presidency.
Trump’s electoral victory and the appointment of cryptocurrency-friendly people to his administration have already resulted in a significant inflow of altcoins, which were previously subject to inspection by the US Securities and Exchange Commission.
The market’s leading altcoin, ETH, is trading at $3,660, which despite the rally is still almost 25% below the record high of $4,878 set during the 2021 bull market.
Featured image from DALL-E, chart from TradingView.com