The crypto market recorded volatile trading this week, following a robust rally over the past few months. Bitcoin (BTC) and top altcoins like Solana (SOL), XRP, Dogecoin (DOGE), and others have recorded significant gains this year. So, here we explore some of the potential reasons that Matrixport has shared behind the crypto’s impressive performance.
Why BTC Records Robust Rally This Year?
BTC and the top altcoins have recorded robust gains as investors have shifted their focus toward the digital assets space. Notably, Donald Trump’s election win in November has further fueled market sentiment towards a pro-crypto regulatory environment. As a result, the cryptocurrency sector recorded a massive surge.
On the other hand, institutional adoption also soared significantly, which has pushed the prices higher. Notably, for Bitcoin, Matrixport said that the crypto has “recorded breaking milestones” this year amid the growing institutional focus.
Meanwhile, the report highlighted Bitcoin’s recent rally to its ATH of $108,000. It noted that Spot Bitcoin ETF approval in January and Donald Trump’s proposal to make a national Bitcoin reserve were the primary reasons behind its surge. In addition, institutional focus, as evidenced by the heavy buying trend of MicroStrategy, Metaplanet, and others, has also bolstered sentiment.
On the other hand, Bitcoin miners like Hut 8, and MARA have also entered the race in accumulating Bitcoin. Meanwhile, the report also said that it predicts Bitcoin to hit $160,000 in 2025, showcasing further growth potential of the asset.
XRP, SOL, & DOGE Follows Trend
The surge in BTC has also sparked a rally in the broader crypto market. Top altcoins like Ethereum, XRP, SOL, DOGE, and others, have also gained immense traction with their robust run this year. Notably, the report showed that Ripple’s XRP surged after its “landmark victory” in August against the US SEC. The judge ruled out XRP to be a security, providing a “much need regulated clarity” to the asset.
On the other hand, Donald Trump’s election victory and Ripple’s stablecoin (RLUSD) launch have further fueled sentiments. Simultaneously, Solana jumped with its technological advancements. The report said that “Solana’s high-throughput, low-cost blockchain positioned it as a leader in the decentralized applications and speculative assets. Besides, top Solana meme coins like Popcat and Dogwifhat have also gained notable traction, further fueling market sentiment.
Talking about Dogecoin, the report said that the top meme coin thrived in 2024 alongside BTC and others, due to shifting market focus towards the meme coin sector. Alongside the rising meme culture, Elon Musk’s Department of Government Efficiency (DOGE) under the Trump administration has further fueled interest in the token. Notably, Musk has previously endorsed the token on social media platforms, and given his new department’s short form (D.O.G.E.) resembling Dogecoin, the meme coin has surged.
Despite the positive trends and recent rallies, the crypto market crashed today. During writing, the global crypto market cap was down about 10% to $3.21 trillion. BTC slipped nearly 8% to $93,841, indicating a heavy selling pressure in the market.
On the other hand, Ethereum price slipped 12%, while XRP price was down over 9%. Solana and Dogecoin prices fell 11% and 20%, respectively, indicating a gloomy sentiment hovering in the market.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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