The value of cryptocurrencies is experiencing an upswing once again, with many alternatives to Bitcoin showing better performance on Thursday as investors boost their holdings at the start of the new year.

Bitcoin climbed by as much as 2.9% to reach $97,526, while altcoins like Ether, XRP, and Dogecoin experienced gains exceeding 4%. Additionally, Solana saw a significant increase of up to 8.2% as of 11:49 AM in New York.

Read: Bitcoin Rally Fueled by Trump Loses Steam as Year Draws to a Close [Dec 2024]

“As the new year begins, investors are increasingly diversifying their portfolios by allocating funds toward more speculative opportunities,” said Chris Newhouse, research director at Cumberland Labs.

According to Newhouse, the initial positive performance of crypto this year may also be linked to the historical trend of digital assets thriving in the first quarter.

“Market dynamics suggest a persistent reallocation of capital toward various thematic sectors,” Newhouse continued. “This seasonal drive, coupled with improving macroeconomic factors and heightened interest in narratives beyond Bitcoin and Ethereum, is providing strong support for altcoins.”

Crypto Stocks

Stocks related to cryptocurrency also experienced gains on the inaugural trading day of 2025. Coinbase saw an increase of up to 5.6%, MicroStrategy rose by 7.3%, and MARA Holding saw an impressive gain of over 8% at its peak.

Although cryptocurrency prices are on an upward trend, they still lag behind the highs achieved in December prior to the downturn. This situation could be influencing some of the current buying activity, as noted by Strahinja Savic, head of data and analytics at FRNT Financial Inc.

“The rallies among altcoins today reflect the popular crypto strategy of ‘buying the dip’ in anticipation of a sustained bull market,” Savic explained.

“For numerous crypto investors, the fundamental reasons backing this bull market remain strong despite the fluctuations.”

Many investors harbor optimism for a more favorable regulatory landscape for cryptocurrency this year, given Donald Trump’s forthcoming presidency.

Altcoins that have faced scrutiny from the US Securities and Exchange Commission have witnessed significant inflows following Trump’s electoral victory and the appointment of crypto advocates to his administration.

Generally, altcoins exhibit higher volatility compared to Bitcoin, which can result in both substantial gains and losses.

© 2025 Bloomberg

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