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Cryptocurrency prices surged on Thursday as investor interest shifted toward smaller, riskier cryptocurrencies ahead of President-elect Donald Trump’s inauguration.
Ripple Bitcoin and Litecoin were among the top gainers, rising 13% and 22% respectively, according to Coin Metrics. this CoinDesk 20 IndexThe broad cryptocurrency market benchmark rose nearly 5%.
at the same time, Bitcoin Up less than 1% after approaching $100,000 two days of gatherings This week it was about 7%. ether It fell nearly 3% on Thursday.
“As new pro-cryptocurrency governments prepare to join, retail investors are looking for opportunities,” Alexander Blume, CEO of consulting firm Two Prime Digital Assets, told CNBC. “The Trump administration is setting off a wave of The stock wave will lift all boats in the cryptocurrency space, and altcoins are seeing some early gains from it.”
Trump is scheduled to be inaugurated on Monday.
Trading platform operator Coin library and Robin Hood Both rose by about 2%. micro strategyCompanies that trade as Bitcoin proxies rose less than 1%.
Gracy Chen, CEO of cryptocurrency exchange Bitget, said: “Trump’s first 50 days as president will determine the trend of Bitcoin in 2025.” “The cryptocurrency market’s expectations for his inauguration and first steps as president are very high. The sensitivity of cryptocurrency market prices to his announcement and appointment in Q4 2024 confirms this.”
During the campaign, Trump promised to create a cryptocurrency advisory committee within his first 100 days in office and replace SEC Chairman Gary Gensler, who became a prominent opponent of the industry during his time in office. CoinDesk 20 gained 98% in the month following the November election. During the same period, Bitcoin gained 46%.
Another factor driving the movement in small-cap cryptocurrencies is the government’s “anticipated strategic reserves that may include other ‘US’ cryptocurrencies” such as XRP and Solana Token, Bloom said.
“It’s unlikely, but it’s surprising and spurs speculators to buy these tokens,” he said. “The best long-term value for investors remains Bitcoin.”
Trump also promised to establish favorable regulations, encourage domestic “Made in America” Bitcoin mining, and activate the National Bitcoin Strategic Reserve. Investors expect volatility in flagship cryptocurrencies this year, with Bitcoin caught in tug of war Investors are divided between concerns about rising inflation under Trump and optimism about his pro-cryptocurrency leadership.
