With all-important coins like Bitcoin, (CRYPTO: BTC) Solana, (CRYPTO: SOL) and XRP (CRYPTO: XRP) hovering near their all-time highs, it’s an excellent time to be a cryptocurrency investor. And, quite soon, a number of recent developments waiting within the wings that would make it a fully great time.
Listed below are the catalysts that would usher in a recent gold rush for these currencies, potentially before the top of the yr.
By now, you’ve got probably heard that the brand new Trump administration has floated the thought of a strategic Bitcoin reserve (SBR). While there is no guarantee that such a thing will come to pass, based on the discussions with the presidential transition team to this point, some investors are anticipating official policy updates throughout the first 100 days of the brand new administration.
That will make for a whopper of a strong catalyst for Bitcoin sometime in the primary quarter of this yr. There probably are no endorsements of the coin’s value which are stronger than the U.S. government’s. If the SBR is created, it should be a significant affirmation of Bitcoin’s core investment thesis.
But the brand new administration won’t stop at making an SBR. Recently, the thought of an SBR has been expanded into what could grow to be a national cryptocurrency repository. If implemented, that idea would mean that the federal government may additionally buy Solana, XRP, and maybe other major U.S.-based cryptocurrencies.
In brief, providing broad-based buying pressure with the financial heft of a government could send these coins higher than what investors could also be anticipating on a long-term basis, and it could begin to occur very soon.
Cryptocurrency markets are very sensitive to borrowing costs.
When rates of interest rise, appealing yields on risk-free Treasury securities give investors little reason to purchase more speculative assets like cryptocurrencies. In contrast, when money is cheaper to borrow, investors must take larger risks to get a solid return because sitting on the safest investments not provides an advantageous yield.
In that vein, Bitcoin, Solana, and XRP are all assets that stand to realize as rates of interest fall. If the Federal Reserve continues its campaign of rolling back rates of interest in 2025 prefer it did in 2024, it’s natural to expect that extra money will flow into crypto.
Nevertheless it is not only the Federal Reserve within the U.S. that is lowering borrowing costs. Many international central banks, including within the U.K., EU, and China, are either considering or have already cut rates as well. And while it is not a certainty that investors in those areas will immediately flock to those major cryptocurrencies, throughout the next few years at the least a few of them will probably show up with a few of their capital, which is bullish for all three.