Bitcoin surges above $96,000 as cryptocurrencies begin 2025 on a strong footing.

The market saw a surge in cryptocurrencies at the beginning of the year, recovering from previous declines, as investor confidence returned.

On Thursday, the price of rose increased by 2% to $96,711.71, resulting in a new year gain of approximately 3% when considering trading from the beginning of the year.

The broader cryptocurrency market, as measured by the CoinDesk 20 index, experienced a 4% increase. The token associated with the popular competitor led the way with a 7% rise. Additionally, crypto stocks and each saw a 4% gain.

The crypto industry is anticipated to have a successful year due to President-elect Donald Trump's promise of a more favorable regulatory environment. Congress is expected to pass its first ever crypto-focused legislation, which could center on stablecoins or market structure.

Traders are eager to witness the growth of the crypto public equity markets, particularly with an increase in initial public offerings and the development of a potential national strategic bitcoin reserve.

In 2024, crypto assets experienced a decline towards the end of the year, despite the post-election rally that propelled bitcoin to unprecedented heights above $100,000. However, the flagship cryptocurrency still finished the year with an impressive gain of over 120%. Long-term investors cashed in some profits while others sold amid growing uncertainty about the Federal Reserve's interest rate cuts in 2025.