Bitcoin's New Year Recovery: What’s Ahead?

Will 2025's New Crypto Regulations Boost Cryptomarket?

Jan 02, 2025

Crypto Market Prediction 2025: Galaxy Research's Bold Insights on Bitcoin, DeFi, and Stablecoins

The cryptocurrency market is currently experiencing a surge in activity, with Bitcoin (BTC) regaining momentum and crossing the $95K mark. Meanwhile, Stellar (XLM) has emerged as the top gainer of the day, showing an impressive 26% surge. Let’s break down the latest trends in the crypto market and what’s driving these price movements.

Bitcoin's Recovery Above $95K

After dipping to $92K, Bitcoin (BTC) has made a swift recovery, rising by 1% in the last 24 hours to regain its position above the $95K mark as per Coinpedia Market data. This recovery shows a strong bounce-back after the dip, signaling a positive sentiment in the market. Bitcoin continues to lead the market with increased trading activity, and its price trajectory will be key to watch as we move into the new year.

For a more detailed Bitcoin price prediction 2025, check out our full analysis!

Altcoins Show Strong Gains

Other altcoins are also seeing positive movement. XRP surged by 15%, Solana (SOL) gained 4%, and IOTA rose by 20%. Cardano and XRP recorded gains of over 10%, showing strong momentum across the market.

Global Crypto Market Cap and Volume

The global crypto market cap increased by 2%, reaching $3.34 trillion. However, trading volume decreased by 16%, now standing at $92 billion. A rebound in trading volume is expected as the holiday season ends.

Bitcoin’s Open Interest and Market Trends

Bitcoin futures aggregate open interest, BTC. Source: CoinGlass

Bitcoin’s open interest has dropped to a two-month low, indicating limited downside risk. While short-term bearish sentiment exists, the market shows strong potential for further growth.

Impact of Political Changes on the Crypto Industry

As the holiday season ends, attention is turning to the upcoming changes in the United States government. With a new president-elect and a fresh batch of Congress members about to take office, many in the digital asset industry are hopeful that these political shifts will bring more favorable regulations for cryptocurrencies.

Crypto industry speculating that changes in leadership could lead to new regulatory approaches, particularly from the US SEC. Under the leadership of SEC Chair Gary Gensler, the commission has pursued several enforcement actions against US-based crypto firms, including cases against Ripple and Coinbase over allegations of unregistered securities offerings.

The Future of Crypto in 2025

As we begin 2025, the cryptocurrency market is showing strong signs of bullish momentum, particularly with Bitcoin and Stellar leading the way. With increasing interest in altcoins and a recovering market cap, crypto enthusiasts and investors are eagerly watching for further developments. The coming months, particularly with the political changes in the US, could be pivotal in shaping the future of cryptocurrency regulations and market behavior.