Cryptocurrency prices are on the rise again, with several altcoins outperforming Bitcoin in the past hours, as investors look to boost their investments ahead of the new year.
Bitcoin rose 2.9% to $97,526 before retreating slightly to $96,600, while altcoins such as Ethereum, XRP and Dogecoin saw gains of more than 4%. Solana surged a whopping 8.2%.
Market movement
Chris Newhouse, director of research at Cumberland Labs, explained that the start of the year represents an opportunity for investors to expand their exposure to cryptocurrencies by allocating capital to more speculative assets.
“The historically positive performance of crypto assets in Q1 could be one of the factors supporting these gains,” Newhouse added. “Market dynamics show continued capital rotation across sectors, along with improving macroeconomic conditions and growing interest in altcoin narratives away from Bitcoin and Ethereum, which supports their upside.”
Market Analysis
Cryptocurrency-related stocks also saw notable gains on the first trading day of 2025. Coinbase shares rose 5.6%, MicroStrategy shares rose 7.3%, and Mara Holdings shares jumped more than 8% during the trading session.
Despite the current gains, cryptocurrency prices are still below their December highs before the drop. However, the pullback could spur fresh buying, according to Strahinja Savic, head of data and analytics at Front Financial.
“The gains we are seeing today among altcoins reflect investors’ commitment to the well-known cryptocurrency mantra of ‘buy the dip,’” Savic said. “The bull market is still alive for most crypto investors, as it is based on solid fundamentals despite the volatility.”
Positive regulatory expectations
Investors are looking for a more supportive regulatory environment for cryptocurrencies this year, with Donald Trump returning to the presidency. Altcoins, which have faced intense scrutiny from the U.S. Securities and Exchange Commission, have seen significant investment inflows since Trump’s election win, thanks to his nomination of crypto-friendly figures to his administration.
Altcoins are known for their high volatility compared to Bitcoin, making them susceptible to greater gains or losses, but that does not negate their appeal as a source of significant profits for investors willing to take risks.