Altcoins Surpassing Bitcoin in Performance

The value of cryptocurrencies is rising again, with numerous alternatives to Bitcoin showing strong performance on Thursday as investors bolster their holdings at the year’s onset.

Bitcoin jumped by as much as 2.9% to reach $97,526, while altcoins including Ether, XRP, and Dogecoin recorded gains exceeding 4%. Additionally, Solana saw an 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 we kick off the new year, investors are looking to diversify their portfolios by channeling funds into more speculative ventures,” noted Chris Newhouse, research director at Cumberland Labs.

The positive momentum for cryptocurrencies at the start of this year may also be linked to the historical trend of digital assets performing well in the first quarter, according to Newhouse.

“Market trends suggest a continuing reallocation of capital across various thematic sectors,” Newhouse further elaborated. “This seasonal momentum, coupled with improving macroeconomic conditions and heightened interest in narratives beyond BTC and ETH, is a robust tailwind for altcoins.”

Crypto stocks

Cryptocurrency-related stocks also experienced gains on the first trading day of 2025. Coinbase climbed as much as 5.6%, MicroStrategy increased by 7.3%, and MARA Holding surged over 8% at its peak.

While cryptocurrency prices are on the rise, they remain below the highs achieved in December before the market downturn. This situation may be contributing to the current buying activity, as indicated by Strahinja Savic, head of data and analytics at FRNT Financial Inc.

“The rallies among altcoins today align with the popular cryptocurrency strategy of ‘buy the dip’ in anticipation of a continued bull market,” Savic noted.

“For many crypto investors, the underlying reasons supporting this bull market remain strong despite the volatility.”

Many investors are hopeful for a more favorable regulatory environment for cryptocurrencies this year, especially with Donald Trump set to take office.

Altcoins that previously faced scrutiny from the US Securities and Exchange Commission have seen substantial inflows following Trump’s electoral win and his choice of crypto advocates for his administration.

Altcoins are generally known to be more volatile than Bitcoin, which can result in both higher gains and losses.

© 2025 Bloomberg

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