Cryptocurrencies are on the rise as investors eye small-cap coins ahead of Trump’s inauguration, with Bitcoin close to hitting $100,000.
New York: Cryptocurrencies took a leap on Thursday as investors shifted their focus to smaller, riskier coins with Trump’s inauguration just around the corner.
XRP and litecoin were the stars of the show, jumping 13% and 22%, respectively. The CoinDesk 20 index, which tracks a broad range of cryptocurrencies, saw a nearly 5% increase.
Bitcoin, on the other hand, was up less than 1%, hovering near the $100,000 mark after a solid two-day rally of about 7%. Ether, however, dipped nearly 3% on Thursday.
According to Alexander Blume, CEO of Two Prime Digital Assets, retail investors are eager for opportunities as a pro-crypto administration prepares to take over. He believes that Trump’s presidency will boost the entire crypto market, leading to early gains for altcoins.
With Trump’s inauguration set for Monday, trading platforms like Coinbase and Robinhood saw their stocks rise by about 2%. MicroStrategy, often seen as a proxy for Bitcoin, was up slightly as well.
Gracy Chen, CEO of Bitget, mentioned that the first 50 days of Trump’s presidency could shape Bitcoin’s future by 2025. The market is buzzing with high expectations for his initial moves as president, especially given how sensitive crypto prices have been to his statements lately.
During his campaign, Trump promised to create a crypto advisory council within his first 100 days and to replace SEC chair Gary Gensler, who has been tough on the industry. Following the November election, the CoinDesk 20 surged by 98%, while Bitcoin gained 46% in the same timeframe.
Another factor driving interest in small-cap cryptocurrencies is the speculation that the government might include “American” cryptocurrencies like XRP and Solana in its strategic reserve, according to Blume. While this is a long shot, it’s sparking interest among speculators.
Blume also noted that while Bitcoin remains the best long-term investment, the excitement around these smaller coins is palpable.
Trump has also hinted at favorable regulations to boost domestic Bitcoin mining and even a national Bitcoin stockpile. Investors are bracing for a year of volatility, caught between worries about inflation under Trump and optimism about his pro-crypto stance.
