Hannah Creger Vuqk

In Switzerland, a proposal has been made to change the constitution to allow the national bank there to hold Bitcoin, and in South Korea they want to bolster weak financial markets with cryptocurrency ETFs. What else has happened in the last week?
Swiss National Bank may soon hold Bitcoin
On the last day of 2024, the Swiss Federal Chancellery submitted a proposal for the Swiss National Bank, the equivalent of the Czech National Bank conducting monetary policy, to hold $BTC for constitutional enshrinement.
A condition of the proposal is that it must get 100,000 signatures from Switzerland's nearly 9 million residents. After that, the proposal can only move to the next stage, which is a vote in a public referendum.
Prominent names from the cryptocurrency community are behind the proposal, namely Giw Zanganeh, vice president of mining and energy at Tether, and Yves Bennaïm, founder of the Swiss non-profit think tank 2B4CH.
It was the 2B4CH organisation that prepared the documents that helped the Chancellery with the Bitcoin proposal. Interestingly, the first application to the Chancellery was supposed to take place in October 2021, but was eventually postponed due to lack of interest.
We have been waiting for the right timing. Now everything is as it should be and that's why we have submitted the documents and will start collecting signatures," said Bennaï.
The proposal is titled Financially Sound, Sovereign and Responsible Switzerland and seeks to amend Article 99(3) of the Swiss federal constitution to make a new reference to Bitcoin.
The National Bank shall create sufficient monetary reserves from its own revenues; part of these reserves are gold and Bitcoin, the proposal says.
In order to move to a public referendum, the proposal must now gather 100,000 signatures by June 30, 2026, which is about a year and a half away.
At the same time, the most prominent country considering investing in Bitcoin is the United States. However, they would take a different route to this step, and that is through a purchase by the Treasury Department, which would hold Bitcoin.
A Bitcoin reserve bill is also being discussed and has the support of Senator Cynthia Lummis. Politicians in Brazil and Poland are also toying with a similar idea.
$1 billion worth of stablecoins added to Solana
$SOL raised $1 billion in stablecoins during December, with the addition primarily driven by USDC, illustrating the growing popularity of stablecoins and Solana's role in DeFi.
Thus, Solana had a total of over $5 billion locked up in these tokens at the end of December, with $4 billion made up of USDC and the second dominant stablecoin being Tether (USDT).
This means that over $5 billion in stablecoins are being used on Solana for operations within decentralized finance and applications.
In terms of market capitalization, that of stablecoins grew rapidly after the US presidential election, when Donald Trump won, supporting the cryptocurrency industry.
The largest stablecoin by market capitalization, USDT, has over $137 billion in deposits, while USDC has $46 billion.
Since the November election, the market capitalization of the top three stablecoins, USDT, USDC and Dai, has increased by $25 billion, a bullish signal for DeFi in particular, where stablecoins play a key role.
Solana thus continues to be a major challenger to Ethereum in the field of decentralized finance and other use cases within smart contracts.
Although the total value of funds locked up on Solana has grown 5x to $8.6 billion in 2024, there is still over $110 billion locked up on Ethereum in stablecoins alone.
Cryptocurrency ETFs to revive capital markets in South Korea
South Korea saw the initial opening of its securities and derivatives markets in the new year on January 2, where the chairman of the South Korean exchange, Eun-Bo Jeong, summarized the past year and outlined the strategy for the future.
Commenting on the past year, he mentioned the economic hurdles facing the country, pointing to factors such as a declining domestic economy, reduced exports and geopolitical tensions.
He stressed the need for innovative financial products to revive domestic capital markets and hinted at interest in flooding cryptocurrency exchange traded funds (ETFs) this year in line with global demand for such products.
However, Ki Young Ju, CEO of CryptoQuant, does not share such a positive view on the approval of cryptocurrency ETFs.
He says the view of digital assets at the local regulator is similar to that of the SEC under Gary Gensler, who has been a strong opponent of the listing of spot ETFs for Bitcoin or $ETH .
#BTC #SOL #ETH #BinanceMegaDropSolve

BlackRock's Bitcoin ETF faced a record outflow of $400 million earlier this year. Is this just New Year's profit taking or a sign of changing investor sentiment?
The day after the financial markets closed for the New Year, Jan. 2, saw the largest daily outflow of funds from BlackRock's $BTC ETF, traded under the ticker IBIT.
Investors withdrew as much as $332.6 million from the fund, bringing this withdrawal to $332.6 million, surpassing the previous record of $188.7 million set on December 24. Are investors getting pessimistic or are they just taking profits at the start of the year?
The recent outflow of funds is not unique, however, with the IBIT fund recording three consecutive trading days of investor withdrawals totaling nearly $400 million, the highest amount on record.
Despite the last few bitter days, BlackRock's bitcoin ETF has nothing to be ashamed of, as it was the third most important ETF across financial markets in terms of new capital raised from investors in 2024.

Comparison with other ETFs
What is notable, however, is that other bitcoin ETFs saw inflows outweigh outflows on January 2. Funds from Bitwise, Fidelity and Ark 21Shares have raised a total of over $100 million.
Even Grayscale's Bitcoin Mini Trust saw inflows of $6.9 million, although the larger GBTC fund faced capital outflows of $23.1 million.
Overall, this brings the total investor withdrawals for the day on January 2 to $242 million, and that's largely due to BlackRock's ETF.
Despite these negative outflows, however, experts suggest that this may be a temporary phenomenon. The long-term outlook for bitcoin ETFs remains optimistic.
Predictions for the future
Looking ahead, Bitcoin pioneer Adam Back is optimistic about the future of bitcoin ETFs. He predicts that they could dominate in 2025 thanks to increased fund inflows and the rising price of Bitcoin.
According to Back, 2025 will see the approval of combined Bitcoin and Ethereum ETFs, the launch of options trading on spot Ethereum ETFs and the introduction of other innovative products.
In addition, he also expects the launch of staking for spot Ethereum funds and the approval of the Solana ETF, which would further expand investment options for those interested in investing in cryptocurrencies.
So while ETF withdrawals may have been causing wrinkles on investors' foreheads of late, it is important to take a long-term view of developments. All factors point to a positive development in the cryptocurrency environment.
#BTC #BitcoinHashRateSurge

The cryptocurrency market has achieved very solid results in 2024. Its total value is already around $3.5 trillion, more than double the end of 2023. Will $BTC strength continue, or is Ripple's $XRP the game changer?
The cryptocurrency market has performed very solidly in 2024. Its total value is already around $3.5 trillion, more than double the end of 2023.
However, the question remains whether the market can maintain its record growth next year.
Analysts estimate that this growth momentum could continue, thanks to the incoming Trump administration. All of this could set the stage for new value creation opportunities.
One such opportunity could be the innovative cryptocurrency XRP. So could this investment, despite Bitcoin's record growth, be your top choice for 2025?
Bitcoin as a reliable store of value
Bitcoin remains a dominant force in the world of cryptocurrencies, contributing significantly to the growth of the overall market in 2024. Its decentralized nature and limited supply of 21 million coins make it a reliable store of value.
This reputation is reinforced by the Securities and Exchange Commission's (SEC) approval of Bitcoin exchange-traded funds (ETFs), which have amassed over $110 billion in assets.
These ETFs offer institutional investors a regulated way to engage in Bitcoin trading, increasing its demand and cementing its place in the financial industry.
Bitcoin's resilience is evidenced by its recovery and growth despite market corrections. Its market capitalisation is approaching $1.9 trillion and analysts predict further growth.
Michael Saylor of MicroStrategy predicts that Bitcoin could reach $13 million per coin by 2045.
While such predictions are ambitious, they underscore a strong belief in Bitcoin's long-term potential.
XRP and its role in global banking
In contrast, XRP, created by Ripple, offers a different value proposition. Ripple aims to streamline global banking through its Ripple Payments network, addressing traditional financial inefficiencies.
By enabling instant transactions without intermediaries, Ripple aims to transform cross-border payments. XRP acts as a bridge currency that reduces transaction costs and eliminates currency exchange fees.
Despite its innovations, XRP faces regulatory challenges. An ongoing legal battle with the Securities and Exchange Commission (SEC) is complicating its ambitious prospects.
A partial settlement in August 2024, which resulted in a $125 million fine for Ripple, brought some clarity.
The court ruled that XRP is only a security in a specific institutional sale, not in general trading, giving hope for its future.
Outlook for 2025
For 2025, both Bitcoin and XRP offer interesting investment opportunities
With its reputation and integration into mainstream products such as ETFs, Bitcoin appears to be a potentially safer option for long-term growth.
XRP's potential hinges on the adoption of Ripple's payment solutions by financial institutions.
While the success of the network does not guarantee a rise in the price of XRP, favorable regulations and increased usage by institutions could boost demand. However, the speculative nature of XRP and regulatory issues require great caution before potential investment.
#BTC #XRP

As 2025 approaches, Ethereum $ETH could strengthen, according to historical data, with the US political environment and capital inflows into ETFs as further catalysts for growth. What do analysts think?
Historical data suggests a potentially promising start to the year, especially after events such as the US election and the Bitcoin halving cycle.
In Q1 2017 and 2021, Ethereum rose 518% and 161% respectively, outperforming Bitcoin's $BTC gains of 11.9% and 103.2%.
A significant factor supporting this bullish narrative is the positive trend of capital inflows into Ethereum-linked spot exchange traded funds (ETFs).
In the last 24 trading days of 2024 alone, 22 days saw inflows exceeding outflows, resulting in more than $2.5 billion raised from investors.
Some predictions reckon that an additional $50 billion could be raised from investors through ETFs in 2025, which could be aided by the expected cryptocurrency-friendly policies from the new Trump administration.
CK Zheng, chief investment officer at ZX Squared Capital, has an optimistic outlook for 2025.
I expect a dramatic increase in money inflows due to potential regulatory changes that could boost the cryptocurrency sector, Zheng said.
Zheng's outlook aligns with many other market players who believe that supportive legislative moves could boost the cryptocurrency industry significantly.
There are also less optimistic scenarios among analysts
However, not all analysts share this bullish view; for example, Markus Thielen of 10x Research is more conservative about Ethereum's future in 2025.
In particular, he highlights the macroeconomic environment, which could be a potential obstacle to the second largest cryptocurrency by market capitalization surpassing the 2021 highs.
Interest rates are now expected to stabilize near the 3.9% band instead of the previously projected 3.4% for 2025, creating a less favorable environment for risk assets such as Bitcoin and Ethereum.
Despite these challenges, optimism persists in the cryptocurrency market.
Thielen suggests that Bitcoin could reach $160,000 at best, although a more likely scenario is that it will oscillate around $125,000.
Currently, Bitcoin is trading around $94,000, while the price of Ethereum is oscillating at $3,400.
Ethereum thus continues to remain 30.3% below its all-time price high of $4,878, which was reached in November 2021.
#BTC #ETH

Which cryptocurrency should you bet on in 2025? Find out how these digital titans differ and how your investment could be successful.
Bitcoin ($BTC ) and Ethereum ($ETH ) have both surged this year, cementing their position as the leading cryptocurrencies. But with 2025 around the corner, one clear question arises - which cryptocurrency would be better to invest in?
Should you consider moving your investments from Bitcoin to Ethereum in the next year? The answer may surprise you.
Bitcoin vs. Ethereum in 2025
Understanding the fundamental differences between Bitcoin and Ethereum is crucial to assessing their investment potential.
Bitcoin is primarily seen as a store of value, similar to digital gold. It functions as a medium of exchange of value, but its main appeal lies in the preservation of value over time. While there are efforts to increase Bitcoin's functionality, its basic purpose remains simple.
Ethereum is designed as a flexible platform for decentralized applications, tools and services. This makes Ethereum more versatile and offers many potential use cases. In addition, a number of projects are constantly trying to make the platform faster, cheaper and more efficient.
Future changes and developments
With 2025 approaching, both cryptocurrencies are facing significant changes.
Bitcoin has already experienced a halving in 2024 and another one is expected in 2028. Such events usually increase the scarcity of the cryptocurrency in the market and may increase prices.
Layer 2 solutions, such as the Lightning Network, aim to increase Bitcoin's transactional capabilities. Growing adoption by retail and institutions, especially with the help of bitcoin ETFs, could then increase its global availability in the future.
Ethereum is rapidly innovating and evolving in DeFi, NFT and gaming applications. These innovations make Ethereum attractive to both users and developers.
The smart contracts platform on Ethereum has attracted the largest developer community on the blockchain, giving it a significant competitive advantage.
Investment philosophy and decision making
When deciding which cryptocurrency to invest in for the future, it is important to know their different investment philosophies.
Bitcoin is often seen as digital gold, with a market capitalization of around $2 trillion compared to gold's nearly $18 trillion.
Thus, the investment is particularly suitable for investors who believe in Bitcoin's long-term potential and its ability to retain value.
Ethereum is more than a digital currency - it's a technology ecosystem. To invest in Ethereum is to bet on the future of decentralized services. While this broader scope makes Ethereum more volatile, it offers the potential for significant growth.
So think of it as the difference between investing in digital gold (Bitcoin) and software infrastructure (Ethereum).
#BTC #ETH #XmasCryptoMiracle

Three red candles on Bitcoin's daily chart have triggered panic. However, analysts believe that macroeconomic changes could push $BTC to a new high in 2025.
Bitcoin's social sentiment reached its lowest point in 2024, perhaps paradoxically suggesting a major price breakthrough that could push the cryptocurrency back above the $100,000 mark.
As of around 10:30 on Monday, Bitcoin was trading at over $95,000, down more than 12% from its all-time high of $108,300 on December 17.
Sentiment decline and market analysis
The drop in sentiment on social media shows an average ratio of four positive comments about Bitcoin to five negative ones.
This drop in retail investor sentiment could paradoxically signal an impending Bitcoin breakthrough. Market research platform Santiment suggests that contrarian investors could benefit from the current fear, uncertainty and doubt (FUD) among traders.
Several analysts expect Bitcoin's correction below $100,000 to end soon. Remarkably, three red candles have appeared consecutively on Bitcoin's daily chart since December 20. This pattern has not been seen since early November, coinciding with Donald Trump's victory in the US election.
Fractal patterns and historical patterns
Price fractal patterns, which are used to identify key support and resistance levels, suggest that Bitcoin could recover before the end of 2024.
Analyst Elya Boom noted on Dec. 20 that emerging fractals suggest a potential near-term recovery above $100,000.
Looking ahead, then, the outlook for the Bitcoin price in 2025 is also optimistic.
According to crypto service provider Matrixport, improving macroeconomic conditions and easing global monetary policy could push the Bitcoin price above $160,000 by next year.
Thus, although Bitcoin is in a correction phase, low social sentiment and technical analysis suggest a potential trend reversal.
#BTC #MarketRebound

Market participants' expectations can be very shaky, as confirmed after the Federal Reserve's latest meeting ended. What information made things so much worse?
The expectations of market participants in financial markets are indeed shaky when information comes to light that was not so much anticipated before.
Of course, the form in which this information is presented also matters. The last Federal Reserve meeting was not so much a turning point in principle, but information was presented that significantly dampened previous optimism.
The monetary policy decision of the US central bank included an economic projection with the key outlook of each central banker for the coming years.
As already mentioned, this was not really anything new. The Fed cut the key interest rate by the expected 0.25 percentage point and the projection was not ground breaking at first glance.
However, the subsequent press conference with Chairman Jerome Powell caused more sobering news.
It was the worst trading day of the year for the overall stock market. We did see slightly deeper declines in August, but this time the net loss for the trading day was more than 3%.
Once similar panic selloffs occur, they normally continue for some time before the market drops to a point where it can gain a foothold.
Why did stock markets face the biggest drop of the year?
To understand the whole situation, we first need to look at the economic projection for the period ahead. First of all, I want to focus on 2025, which is logically the key year.
I will not beat around the bush and we will focus on the most important things: The projection indicates a much higher level of interest rates for 2025.
Since the September projection, the median level has risen from 3.4% to 3.9%. The Fed is also counting on much higher headline and core inflation next year, which is well above the inflation target on the whole.
The estimate for core inflation is 2.5%, up from 2.2%. Headline inflation is also projected to be 2.5% in 2025, up from 2.1%. Recall that inflation targeting is at 2%. Both estimates are therefore 50% above target.
The derivatives market immediately started to write the above, according to which the next cut in rates should come in June. Incidentally, the derivatives market is now prescribing only two cuts for next year. So just copying what the Fed has in its outlook.
However, the above had no effect on the financial markets. There will always be some volatility, but there will not immediately be a drop of more than 3% in the overall market.
So what exactly sent stocks and bitcoin down?
Jerome Powell mentioned during the press conference that rates will go down much more slowly next year. First of all, he acknowledged that the core component of inflation has been going sideways for a long time.
Core inflation in the CPI and PCE have been virtually unmoving for months, which represents so-called stickiness.
This is quite a complicating development for central bankers as they have to balance between the labour market and the price level (dual mandate).
This means micromanaging, trying to find a level of restriction that will secure the 2% inflation target in the long run without hurting the real economy.
In addition, he mentioned that inflation risk has risen. This particular piece of information is, in my view, the key source of concern that triggered the sell-off. It's as if he started shouting that interest rates quite possibly won't fall at all in 2025.
The financial markets, or equities, $BTC , gold, everywhere were counting on base rates falling noticeably below 4% in 2025.
Incidentally, the bitcoin canary initially wrote off just over 6% for Wednesday's trading day. The market therefore held up nicely compared to the overall market.
Only the decline continued and as of Friday afternoon, bitcoin has written off 13% from the high. It's still a price decline within the confines of a correction, but there is clearly a minor panic.
Conclusion
When one invests, one must think twice about why and what one puts the money earned into. And the worst thing ever is when someone carelessly squanders borrowed money.
But I hope there are no such people among my readers, because sooner or later hell will be yours.
Anyway, you have to keep your expectations within certain rational boundaries.
Once "everyone" is chiming in with a higher estimate for the price of bitcoin or for a stock index, no one should be surprised that these predictions don't come true. At least not in the short term.
Markets should be thought of as a complicated organism that is influenced in real time by a theoretically infinite number of variables.
It is therefore impossible to predict exactly how the market will evolve. However, some analysis is still better than investing on the advice of friends at work.
#BTCNextMove #BTC #BTCMarketPanic

The US government could buy up to one million $BTC in the coming years. Experts predict that this move could drive the price of the cryptocurrency up to USD 800,000 by the end of 2025.
President-elect Donald Trump may designate Bitcoin as a US reserve asset unexpectedly soon. This speculation stems from information shared by Jack Mallers, CEO of Strike.
Mallers suggests that Trump could issue an executive order on his first day in office that would initiate this change.
A potential executive order could be part of the "Dollar Stabilization Act" that would grant Trump significant powers to protect the U.S. dollar.
Mallers also mentioned a possible significant purchase of bitcoins by the White House on Trump's first day in office, "It wouldn't be a million BTC magnitude, but it would be a significant position."
Bitcoin as a reserve asset
This is in line with the Bitcoin Act of 2024, introduced by pro-crypto Senator Cynthia Lummis.
The bill proposes that the Treasury Department and the Federal Reserve acquire 200,000 BTC per year for five years, with the goal of accumulating one million BTC, or 5% of the total Bitcoin supply, to hold for two decades.
The US government's acceptance of Bitcoin as a reserve asset has prompted ambitious price predictions.
Perianne Boring, founder of The Digital Chamber, predicts a significant price increase if Trump's policy comes to fruition.
She estimates that Bitcoin's price could exceed $800,000 by the end of 2025 due to its fixed supply and growing demand.
The stock-to-flow (S2F) model, a popular tool for predicting cryptocurrency trends, supports this outlook. Its creator, PlanB, predicts an average Bitcoin value of $500,000 in 2025.
Potential peaks could then reach $1 million, which would increase Bitcoin's market capitalisation from over $2 trillion to around $15 trillion.
The U.S. government's move to accumulate Bitcoin could inspire a global trend where other countries will consider strategic reserves of Bitcoin, which will increase demand and support its price.
Institutional acceptance of Bitcoin
BlackRock, which manages more than $10 trillion in assets, recognizes the growing importance of Bitcoin.
The firm suggests a 1-2% portfolio allocation to Bitcoin for diversification purposes. In a Dec. 12 report, management highlighted the potential of Bitcoin in a multi-asset portfolio as a suitable alternative for investors.
Global reserve assets are worth approximately $900 trillion. A 2% allocation to Bitcoin from this pool could increase its price to approximately $900,000 per unit, underscoring the transformative potential of institutional adoption.

Think you've already missed the Bitcoin boom? Think again! A regular investing strategy can still yield big returns!
Are you one of those who think that investing in $BTC is no longer worthwhile these days? If so, this article is for you!
Despite its historical performance, Bitcoin remains the best performing asset and a promising investment today, and thanks to strategies such as Dollar Cost Averaging (DCA), it doesn't even require significant capital to make an initial investment.
Bitcoin consistently outperforms traditional investments such as gold, the Dow Jones, or giants in the technology sector like Apple. This means one thing - it's never too late to join the bitcoin revolution, even if you're investing 100 crowns or millions per week.
The power of the DCA strategy
The DCA strategy, also known as the regular investing strategy, involves investing a fixed amount on a regular basis, regardless of the price of the asset.
The strategy thus eliminates emotional decision making and reduces the impact of market volatility. By buying consistently, investors can benefit from market downturns while building their portfolios steadily.
The following example describes the benefits of a DCA strategy. Consider how the strategy performs over time:
6 months: an investment of $25 per week in Bitcoin would turn $675 into $985.56 - a return of 46.01 %. In contrast, gold rose 5.82 %, Apple rose 10.32%, and the Dow Jones rose 7.34 %.1 Year: The value of a $1,325 investment in Bitcoin would now be $2,140.20, a 61.52 % return. Meanwhile, gold is up 14.50 %, Apple is up 22.80 % and the Dow Jones is up 11.36 %.Year 2: A $25 weekly investment totaling $2,650 would now be worth $7,145.42 - a 169.64 % return. Gold is up 26.56 %, Apple is up 36.22 % and the Dow Jones is up 21.13 %.4 years: a long-term investment of $5,250 in Bitcoin would now be worth $14,877.77, a 183.39 % return. Over the same period, gold rose 37.26 %, Apple gained 54.05 % and the Dow Jones rose 27.32 %.
Across all time frames, bitcoin has significantly outperformed traditional assets and offers compelling returns, even in short-term periods.
The myth of market timing
Historical data shows that the DCA strategy minimizes market timing risks while enhancing returns. Thus, even small regular investments can grow significantly as the value of Bitcoin increases.
Recently, Bitcoin has been increasingly perceived as a reliable store of value in a volatile economic environment. Thus, with growing institutional acceptance and technological advances, Bitcoin's long-term outlook remains positive.

With just a few weeks to go until the end of 2024, $BTC price has climbed by around 150% to surpass the $100,000 per coin mark.
Although Bitcoin has been oscillating above and below the $100,000 mark since then, it has even looked above $107,000 as of today (December 16, 2024) and there are plenty of reasons to remain optimistic about the future of this cryptocurrency.
Let's take a look at some positive catalysts that could positively impact Bitcoin in 2025 and assess where it could be trading this time next year.
Securities and Exchange Commission shakeup
Gary Gensler is one of the most interesting figures in the financial world today. A former investment banker at Goldman Sachs, Gensler initially focused on mergers and acquisitions (M&A) before moving on to other positions in trading and bonds.
In the late 1990s, however, Gensler left Wall Street to pursue a career in public administration. Gensler served in various capacities under Presidents Clinton, Obama and now Biden. He has been chairman of the Securities and Exchange Commission (SEC) since 2021.
On November 20, the Securities and Exchange Commission issued a statement that Chairman Gensler will step down from his position at the SEC on January 20. While it may look like Chairman Gensler is retiring, note the timing of his resignation - January 20, 2025 is the inauguration day of President-elect Trump.
A new regulatory environment could be on the way
One of the main reasons Gensler is leaving the SEC likely has to do with his philosophy regarding the cryptocurrency environment.
Trump seems to be taking a more open-minded approach to crypto-regulation, listening to some of the ideas being pushed by prominent executives at crypto companies like Coinbase.
While the digital asset industry has made some progress under Gensler - for example, the introduction of spot bitcoin ETFs - the incoming administration seems more sympathetic to the crypto industry in terms of regulation than what is currently in place.
The first step towards a shift in cryptocurrency regulation is the Financial Innovation and Technology for the 21st Century Act (FIT21). This bill was passed by the House of Representatives back in May.
At its core, FIT21 aims to form more robust guidelines regarding the regulation of cryptocurrencies.
One significant part of the bill is determining how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will oversee digital assets.
President-elect Trump also nominated pro-crypto trader Paul Atkins to succeed Gensler as SEC chairman.
In addition, the Republican Party will have majority control of both the House of Representatives and the Senate. Such dynamics should help with the Atkins cabinet approval process while providing Trump with a fast track to signing FIT21.
What effect could the introduction of tariffs have on Bitcoin?
In addition to the above points, another large-scale change that could be in the pipeline under the new Trump administration is the introduction of tariffs.
While it is too early to tell at this point what impact tariffs would have on the economy, there is a very real possibility that they could increase the cost of goods and services in the short term.
As a result, consumer spending power could weaken, which could ultimately slow economic growth for a period of time.
These dynamics would have a direct impact on businesses and the stock market. If companies begin to show signs of slowing sales or weaker profit margins, the stock market could begin to sell off.
Given the growing acceptance of cryptocurrencies, it would not be surprising if major cryptocurrencies, such as Bitcoin, start to move upwards as investors add them to portfolios as an additional layer of diversification.
Will Bitcoin be higher or lower a year from now?
The chart below shows the price of Bitcoin through 2024. After a short-term blip at the beginning of the year, Bitcoin price movements during the spring and summer were actually pretty mundane. It wasn't until around the time of the election that Bitcoin started to rise significantly.
The recent momentum driving Bitcoin could indicate optimism about how the incoming administration will positively impact and change the crypto environment.
While it is impossible to say with certainty which direction the Bitcoin price will move, history suggests that it should continue to rise sharply under the new Trump administration.
Given that the incoming administration is more sympathetic to cryptocurrencies, cautious optimism is in order. From a fundamental perspective, Bitcoin should continue to grow next year.