rises to $97k as new year route eases; Tether has been labeled a MiCA by Investing.com
Investing.com– Bitcoin rose on Friday, extending a recovery from the price trend seen over the New Year’s holiday as traders sought more clarity on the US regulatory outlook under incoming President Donald Trump.
Stablecoin was the main point of focus this week, as it plunged into its worst decline in market capitalization since the 2022 FTX crash after the European Union’s Markets in Crypto-Assets regulation went into full effect in late December. Several European exchanges, as well Coinbase Global Inc (NASDAQ:), has removed the stablecoin from their platform due to compliance concerns.
The broader crypto markets were hit by a wave of selling in the final week of 2024 as traders locked in a year-long profit cycle. But some caution has also crept into the markets, especially on the idea that US interest rates will decline at a slower pace through 2025.
Still, the prospect of friendly regulations under Trump has kept crypto markets high, with Bitcoin also staging a recovery from its year-end decline.
rose 1.2% to $96,852.7 at 23:41 ET (04:41 GMT), having briefly risen above $97,000 earlier in the day.
Tether has been hit by the MiCA implementation
USDT fell 1.4% in market capitalization last week to around $137 billion, with the decline coming largely after the implementation of MiCA in the EU.
The law establishes stricter rules for stablecoin issuers within the bloc, including new requirements for depository facilities and liquidity. The law also requires stablecoin issuers to obtain a license to operate in the EU.
USDT is the stablecoin with the largest stake in the world, and it is an important part of the crypto market because it facilitates many transactions. This exposure could reduce the overall impact of MiCA on USDT, given its prevalence in the crypto market.
Crypto price today: altcoins rise after stellar 2024
Broad crypto prices extended their recent recovery into Friday, with many major altcoins turning in strong gains after a weak start to the year.
But despite their year-end losses, many major altcoins were sitting on stellar gains in 2024, as investors bet that friendly rules under Trump will draw more money to cryptos beyond Bitcoin.
The world no.2 crypto rose 1.1% to $3,454.56, while the world no.3 crypto rose 1.6% to $2.4405.
and increased between 0.4% and 2%, while among meme tokens, it added 2.1%.
