Bitcoin is getting closer to reaching $100,000, but its progress has slowed down. It hit a new high of $99,500 on Thursday before dropping below $99,000 as the U.S. market opened. Bitcoin has increased by 1% in the last 24 hours, while the CoinDesk 20 Index, which tracks the overall market, rose by over 7%. Many alternative cryptocurrencies, also known as altcoins, in the CoinDesk 20 performed better than Bitcoin. This suggests that investors are starting to move their money into smaller, riskier tokens as Bitcoin’s growth slows down. The $100,000 price level is seen as a major hurdle, where investors might decide to cash out their investments. However, there is a chance that Bitcoin could rally up to $115,000 by Christmas. This is supported by the increasing supply of stablecoins, money flowing into ETFs, and the optimistic options trading on BlackRock’s spot Bitcoin ETF (IBIT), according to a note from 10x Research.
Altcoins are currently in the spotlight as regulatory challenges seem to be easing up. Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), is expected to step down on January 20, which is the day of President-elect Donald Trump’s inauguration. Market participants believe that the new leadership at the SEC will be more open to approving investment products for smaller tokens and allowing staking for ETFs. XRP saw the biggest increase, jumping by 33% in 24 hours, while Cardano’s ADA rose by over 15%. Solana’s native token (SOL) reached an all-time high above $260, becoming the first large-cap altcoin to surpass its previous peak in 2021.
Charles Schwab, a major financial services company, expressed its interest in offering cryptocurrency directly to its customers, according to the incoming CEO. This indicates that U.S. institutions are becoming more confident about the future regulatory environment for digital assets. Rick Wurster, the CEO-in-waiting, mentioned in an interview that they have been waiting for a shift in the regulatory landscape and are optimistic that it will happen soon. Additionally, Bitwise, a digital asset manager, has entered the competition to launch a solana-based ETF in the U.S.
In terms of decentralized exchange (DEX) trading volumes, there has been a notable increase as traders anticipate more favorable crypto regulations under the upcoming presidency of Donald Trump. Last week, DEX volumes surged to a record $72.6 billion, with Raydium, a DEX based on Solana, accounting for 44% of the total volume.
Overall, the cryptocurrency market is experiencing a shift towards altcoins as investors explore new opportunities amidst changing regulations and market dynamics. The potential for Bitcoin to reach $100,000 and beyond, coupled with increasing institutional interest in digital assets, sets the stage for an exciting period ahead in the crypto space.