This week, there's been an uptick in the value of various alternative cryptocurrencies, or altcoins.
In recent trading days, crypto investors could be forgiven for thinking they've been hurtled into 2024's bull runs. A multitude of altcoins saw double-digit surges over the past five days. Take, for instance, Solana's (SOL 5.28%) nearly 15% increase, falling short only to Chainlink's (LINK 5.17%) 22% rise and Litecoin's (LTC 0.55%) impressive 30% gain. Aave (AAVE 4.34%) ended the week on a high, up by 16%.
Altcoins Skyrocket
It's a well-known fact that coins and tokens tend to ride the wave of similar trends. This week, Bitcoin (BTC 3.18%) set the stage, making waves from approximately $90,000 on Monday morning to nearly $106,000, close to its record high, before taking a slight breather late Friday.
Optimism is running high in the crypto realm, largely driven by the anticipation of more crypto-friendly policies from upcoming U.S. administration.
Crypto's New Dawn?
The incoming administration is expected to adopt more crypto-friendly measures compared to previous administrations, which had more reserved stances on the industry. Changes in policy include:
- SEC Chairman: The appointment of a pro-crypto SEC chairman, Paul Atkins, could potentially usher in more lenient regulatory measures for the U.S. cryptocurrency sector.
- Crypto Advisory Council: A proposed advisory council to guide federal policy and foster favorable policies in the crypto sector is a step towards regulatory clarity and could potentially lift restrictive measures like "Operation Choke Point 2.0."
- Repealing Regulatory Barriers: Plans to repeal requirements classifying digital assets as liabilities on banks' balance sheets could ease accounting requirements, attracting new companies to the crypto sector.
- Financial Services Access: Ending the de-banking practice and reconciling digital and traditional finance could break down barriers between the two worlds.
Despite the market's enthusiasm, it's essential to tread lightly, as there's often a gap between administration's promises and the eventual policies rolled out. Buyer beware in the upcoming trading days.
In light of the anticipated crypto-friendly policies, investors are exploring different finance opportunities, leading to an increase in money being poured into the market for investing in various altcoins. As a result, this surge in interest has significantly impacted the value of coins and tokens, such as Solana, Chainlink, Litecoin, and Aave, which have seen substantial gains.