Cryptocurrencies Rise to Start the Year, Rebounding From Recent Losses as Investor Optimism Returns to the Market

The price of bitcoin rose 1% to $96,283.33 Thursday, bringing its new year gain to about 3% when counting trading from the Jan. 1 session.

Cryptocurrencies kicked off the year with gains, recovering from recent losses as optimism returned to the market.

Bitcoin rose 1% to $96,283.33 Thursday, bringing its year-to-date gain to about 3%.

The CoinDesk 20 index, a measure of the broader crypto market, advanced 4%. Among major tokens, Solana led the gains with a 7% increase. Crypto stocks Coinbase and MicroStrategy each climbed 4%.

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 keeping an eye on the possibility of 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.