Investing.com– The stock fell slightly on Monday, cooling off after a late-week rally, as markets await more clues on new U.S. President Donald Trump’s cryptocurrency policies.
Caution over increasing distributions from defunct crypto platform Mt. Gox also weighed, after a wallet associated with the platform moved more than $2 billion worth of coins last week. Such a move typically heralds a distribution, with Mt. Gox still holding billions of dollars in bitcoin that it plans to return to its creditors.
fell 0.48% to $99,300 as of 7:45 a.m.
Trump’s crypto rally pauses ahead of other political and economic cues
Optimism over cryptocurrency-friendly regulations under President-elect Donald Trump helped bitcoin rise sharply last week, hitting a record high of $103,719.4.
Enthusiasm for Trump’s policy plans increased last week after he nominated a crypto-friendly chairman for the Securities and Exchange Commission. He then nominated pro-cryptocurrency candidates to head the Treasury and serve as commerce secretary.
Trump has promised to implement cryptocurrency-friendly regulations during his second term, in order to make America the “cryptocurrency capital of the world.” He also floated the idea of a strategic bitcoin reserve, although analysts are skeptical about the prospect of such a reserve.
Bitcoin has remained within sight of recent highs, although traders are now awaiting more clues on crypto policy, ahead of Trump’s inauguration on January 20.
Altcoins Overtake Bitcoin on Regulatory Encouragement
A trend has emerged in recent weeks: altcoins have seen much steeper gains than bitcoin, amid hopes that greater regulatory clarity will shift attention away from the bitcoin market and toward others use case.
has been one of the biggest beneficiaries of that trade, surging to six-year highs as traders bet the SEC will also drop its long-standing lawsuits against the issuer after Trump takes office.
A sharp decline in bitcoin dominance – which measures the percentage of crypto market capitalization held by bitcoin – reinforced the idea of altcoins’ outperformance. Bitcoin dominance has fallen to its lowest level in a month, at around 55%, according to Coinmarketcap data.
Bitcoin’s rise this year has eclipsed most other cryptocurrencies. But it also allowed them to trade at potentially attractive prices.
Cryptocurrency Prices Today: Altcoins Drift Down Following Bitcoin
While major altcoins have performed better than bitcoin over the past few weeks, their rally was also seen in tandem with the major cryptocurrency on Monday.
The world’s second-largest cryptocurrency fell 1% to $3,939.69, while – which recently became the third-largest cryptocurrency – fell 0.5% to $2.4821.
and fell from 1.6% to 2.5%.
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