With all important coins like Bitcoin,, (Crypto: BTC) Saltworks,, (Crypto: Salt) and Xrp (Crypto: xrp) Hovering close to your all time, it is the right time to be a cryptocurrency investor. And, very quickly, a few new events waiting in wings that could make it absolutely great time.
Here’s a catalyst who could start a new gold rush for these currencies, potentially before the end of the year.
So far, you have probably heard that the new Trump administration has floated the idea of a strategic Bitcoin (SBR) strategic reserves. Although there is no guarantee that such a thing will happen, on the basis of talking to the presidential transition team so far, some investors envisage official updates of policy in the first 100 days from the new administration.
This would mean that a strong catalyst for Bitcoin is sometime in the first quarter of this year. There is probably no approval of the value of coins that are stronger than the US government. If it is created by SBR, it will be the main confirmation of the bitcoin core Investment thesis.
But the new administration may not stop making the SBR. Recently, the idea of SBR has been expanded to what could become a national cryptocurrency repository. If spent, that concept would mean that the Government could also buy Solana, XRP and perhaps other main cryptocurrency currencies based in the US.
In short, providing a widely founded pressure from buying a financial large government could send these coins greater than what investors can predict in the long run, which could start happening very quickly.
Cryptocurrency markets are very sensitive to borrowing costs.
When interest rates Increase, attractive yields in securities without treasury give investors little reasons to buy more speculative assets such as cryptocurrencies. In contrast, when money is cheaper to loan, investors must take higher risks to get a solid refund, because sitting on the safest investments no longer provides a favorable yield.
In this Veni Bitcoin, Solana and XRP are all assets that stand to get interest rates fall. If the federal reserves continue their campaign of return interest rates in 2025, as well as in 2024, it is natural to expect more money to go to cryptocurrencies.
But only federal reserves in the United States reduce borrowing costs. Many international central banks, including the UK, EU and China, or considered or have already reduced rates. While she is not sure that investors in these areas will immediately approach these main crypts of currencies, over the next few years, at least some of them are likely to appear with some of their capital, which is a bull for all three.
