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Cryptocurrencies jumped on Thursday as investor appetite shifted to smaller, riskier currencies ahead of President-elect Donald Trump's inauguration.
XRP Litecoin was among the biggest movers, rising 13% and 22% respectively, according to Coin Metrics. the CoinDesk 20 Indexwhich is a broad benchmark for the cryptocurrency market, at approximately 5%.
Meanwhile, Bitcoin rose less than 1% near $100,000, after a A two-day walk By about 7% this week. ether It fell nearly 3% on Thursday.
“Retail investors are looking for opportunities as the new pro-crypto administration prepares to get underway,” Alexander Blum, CEO of consulting firm Two Prime Digital Assets, told CNBC. “The Trump administration is a rising tide that will lift all crypto boats, and altcoins are seeing some early gains from this.”
Trump is scheduled to be inaugurated on Monday.
Trading platform operators Coinbase and Robinhood Each rose approximately 2%. Accurate strategywhich trades as a proxy for Bitcoin, rose less than 1%.
“The first 50 days of the Trump presidency will determine the course of Bitcoin in 2025,” said Gracie Chen, CEO of cryptocurrency exchange Bitgate. “Expectations of the cryptocurrency market for his inauguration and first steps as president are very high, which is confirmed by the sensitivity of the cryptocurrency market prices to the announcements and appointments he made in the last quarter of 2024.”
During his campaign, Trump promised to create a cryptocurrency advisory board in his first 100 days in office and replace SEC Chairman Gary Gensler, who became a prominent opponent of the industry during his tenure. CoinDesk 20 advanced 98% in one month after the November election. In the same period, Bitcoin recorded gains of 46%.
Another thing driving action in small-cap cryptocurrencies is the possibility that the government's “projected strategic reserve may include other 'US' cryptocurrencies,” such as XRP and Solana Bloom said.
“This is unlikely, (but) it comes as a surprise and prompts speculators to buy currencies,” he said. “The best long-term value for investors will still be Bitcoin.”
Trump also promised to put in place appropriate regulation to encourage domestic “Made in the USA” Bitcoin mining and launch a strategic national stockpile of Bitcoin. Investors are anticipating volatility in the major cryptocurrency this year, with Bitcoin Stuck in a tug of war Between investors' concerns about rising inflation under Trump and their optimism about his pro-crypto leadership.
