Bitcoin dipped slightly on Monday following a weekend surge, as investors awaited clearer signals on U.S. crypto policy from President-elect Donald Trump.
The cryptocurrency market faced additional pressure due to concerns over potential distributions from the defunct Mt. Gox exchange. Last week, a wallet linked to Mt. Gox moved over $2 billion in Bitcoin, often a precursor to creditor payouts. The exchange, which still holds significant Bitcoin reserves, plans to return billions of dollars to its creditors.
As of 00:01 ET (05:01 GMT), Bitcoin fell 0.4% to $99,439.8.
Bitcoin Rally Stalls Amid Policy Uncertainty
Bitcoin’s recent rally, fueled by optimism over Trump’s pro-crypto policies, paused after hitting an all-time high of $103,719.4 last week. Investor sentiment surged when Trump nominated crypto-friendly candidates for top financial regulatory positions, including the chair of the Securities and Exchange Commission (SEC) and leadership roles in the Treasury and Commerce departments.
Trump has pledged to introduce regulations aimed at making the U.S. a global leader in cryptocurrency innovation. He has also proposed the creation of a Bitcoin Strategic Reserve, though analysts remain skeptical about its feasibility.
While Bitcoin stayed close to its recent highs, traders are now focused on upcoming policy announcements ahead of Trump’s inauguration on January 20.
Altcoins Outpace Bitcoin in Regulatory Optimism
Altcoins have outperformed Bitcoin recently, as hopes for regulatory clarity shifted market focus towards alternative use cases.
XRP emerged as a top gainer, reaching six-year highs amid speculation that the SEC will drop its long-standing lawsuit against Ripple under the new administration.
Bitcoin’s dominance in the crypto market capitalization dropped to a one-month low of 55%, according to CoinMarketCap data, reinforcing the trend of altcoin outperformance.
While Bitcoin’s rally has dominated headlines, many altcoins are considered undervalued, offering potentially attractive opportunities.
Altcoins Cool Off, Following Bitcoin’s Decline
Despite recent outperformance, altcoins mirrored Bitcoin’s retreat on Monday.
Ethereum, the second-largest cryptocurrency, slipped 1% to $3,939.69, while XRP, now the third-largest, declined 0.5% to $2.4821.
Other notable altcoins, including Solana, Cardano, and Polygon, dropped between 1.6% and 2.5%. Meme token Dogecoin experienced a sharper fall, losing 4.6%.
The crypto market remains in a cautious stance, with traders closely monitoring upcoming policy developments and their potential impact on the industry.
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