PakGazette– Bitcoin rose on Friday, extending the recovery from the price crash seen over the New Year holiday, as traders sought more clarity on the U.S. regulatory outlook under incoming President Donald Trump.
The stablecoin was in the spotlight this week as it recorded its worst drop in market capitalization since the 2022 FTX crash after the European Union’s Cryptoasset Markets law came into full force at the end of December. . Several European stock exchanges, as well as Coinbase Global Inc (NASDAQ 🙂, removed the stablecoin from its platforms over compliance concerns.
The broader crypto markets were hit by a wave of selling in the final week of 2024, as traders put together a stellar run of gains throughout the year. But some caution also crept into markets, especially given the idea that U.S. interest rates will fall at a slower pace in 2025.
Still, the prospect of friendlier regulations under Trump kept crypto markets relatively optimistic, with Bitcoin also recovering from its year-end lows.
rose 1.2% to $96,852.7 at 23:41 ET (04:41 GMT), briefly topping $97,000 earlier in the day.
Tether affected by MiCA implementation
USDT recorded a 1.4% drop in market capitalization over the past week to around $137 billion, with the drop largely coming after the implementation of MiCA in the EU.
The law establishes strict regulations for stablecoin issuers within the block, including new capital and liquidity reserve requirements. The law also requires stablecoin issuers to obtain a license to operate in the EU.
USDT is by far the largest dollar-pegged stablecoin in the world and is an integral part of the crypto market because it facilitates a large number of transactions. This exposure could mitigate the overall impact of MiCA on USDT, given its prevalence in the crypto market.
Crypto Price Today: Altcoins Rise After Stellar 2024
Broader cryptocurrency prices extended their recent rally into Friday, with most major altcoins posting strong gains after a weak start to the year.
But despite their year-end losses, most major altcoins posted stellar gains through 2024 as investors bet that friendlier regulations under Trump will draw more capital into cryptocurrencies beyond Bitcoin.
The world’s No. 2 cryptocurrency rose 1.1% to $3,454.56, while the world’s No. 3 cryptocurrency rose 1.6% to $2.4405.
and rose between 0.4% and 2%, while among meme tokens, it added 2.1%.
