With all the important coins like Bitcoin, (Crypto: Bitcoin) Solana, (encryption:sol) and XRP (Crypto: XRP) Hovering near all-time highs, this is a good time to be a cryptocurrency investor. And very soon, there are some new developments ahead that could make this a very exciting time.
Here are the catalysts that could lead to a new gold rush for these currencies, perhaps before the end of the year.
You may have heard by now that the new Trump administration has floated the idea of creating a Strategic Bitcoin Reserve (SBR). While there is no guarantee that such a thing will happen, based on discussions with the presidential transition team so far, some investors expect formal policy updates within the first 100 days of the new administration.
This could be a strong catalyst for Bitcoin sometime in the first quarter of this year. There are perhaps no stronger endorsements of the value of currency than those of the United States government. If SBR is created, it will be a huge confirmation of the essence of Bitcoin Investment thesis.
But the new administration may not stop at preparing the SBR report. Recently, the idea of SBR has been expanded into what could become a national cryptocurrency repository. If this concept is implemented, it means that the government may also buy Solana, Ripple, and possibly other major US-based cryptocurrencies.
In short, providing widespread buying pressure with the government’s fiscal heft could send these currencies higher than long-term investors might expect, and that could start to happen very soon.
Cryptocurrency markets are very sensitive to borrowing costs.
when Interest rates As interest rates rise, the attractive yields on risk-free Treasuries do not give investors a good reason to buy more speculative assets like cryptocurrencies. In contrast, when borrowing money is cheaper, investors need to take on greater risk to get a strong return because sitting on safer investments no longer provides a useful return.
In this context, Bitcoin, Solana, and XRP are all assets that stand to gain as interest rates fall. If the Fed continues its campaign to lower interest rates in 2025 as it did in 2024, we would naturally expect more money to flow into cryptocurrencies.
But it is not only the US Federal Reserve that is reducing borrowing costs. Many international central banks, including those in the UK, EU and China, are either considering cutting interest rates or have already cut them as well. Although it is not certain that investors in those areas will immediately flock to these major cryptocurrencies, it is likely that at least some of them will emerge over the next few years with some of their capital, which is bullish for all three currencies.
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