Cryptocurrencies started the year on a positive note, recovering from recent losses as investor sentiment improved.
Bitcoin’s price rose by 2% on Thursday, bringing its year-to-date gain to 3%, including trading from January 1.
The CoinDesk 20 index, which tracks the broader cryptocurrency market, rose by 4%. Solana’s token, a popular Ethereum competitor, led the gains with a 7% increase.
Meanwhile, crypto stocks Coinbase and MicroStrategy each saw a 4% rise.
Traders are eager for the expansion of the crypto public equity markets, with expectations for more initial public offerings and progress on a potential national strategic bitcoin reserve.
Crypto assets saw a decline toward the end of 2024.
Despite the post-election rally that pushed Bitcoin to new records above $100,000 fading, the cryptocurrency still finished the year up over 120%.
Long-term holders took profits, while others sold due to renewed uncertainty surrounding the Federal Reserve’s potential interest rate cuts in 2025.
