Cryptocurrencies have had a stellar performance in 2024, with Bitcoin reaching new all-time highs. For this bull run to continue, investors are counting on two key factors:
- A more favorable regulatory environment under Donald Trump’s potential second administration.
- Supportive macroeconomic conditions that sustain risk-asset momentum.
Cryptocurrency Performance in 2024
Bitcoin Leads the Charge
- 119.6% annual gain in 2024, closing at $93,413.90.
- Two-year surge of 464.2%, marking its strongest performance since 2021.
- First breached $100,000 in December 2024.
Altcoins Show Strong Growth
- Ethereum (ETH): +46.5%, closing at $3,344.72.
- Ripple (XRP): +238.4%, its best year since 2021.
- Solana (SOL): +85.5%, positioned as Ethereum’s competitor.
Crypto-Linked Stocks Outperform
- MicroStrategy (MSTR): +358.5% (holds 44,640 BTC, ~2% of supply).
- Coinbase (COIN): +42.8%, reflecting exchange growth.
What Will Drive the Next Crypto Rally?
1. Regulatory Clarity Under Trump
Investors await Trump’s stance on:
- Strategic Bitcoin reserves: Will the U.S. acquire BTC as a reserve asset?
- SEC guidance: Clarity on which cryptos qualify as securities.
- Revisions to SAB 121: Current accounting rules make crypto custody costly for banks.
Key Quote:
“Trump’s first 100 days will be critical.” — Sean Farrell, Fundstrat
2. Federal Reserve Policy
Market expectations for 2025:
- 14% chance rates stay at 4.25%-4.5%.
- 33.2% chance of a 25-bps cut.
- 31.5% chance of two rate cuts.
👉 How Fed decisions could shape crypto markets
FAQs
Q: Why are Trump’s first 100 days important for crypto?
A: This period often sets the tone for a presidency, including regulatory shifts and policy priorities.
Q: What’s the significance of SAB 121?
A: It forces banks to hold capital against crypto holdings, discouraging institutional adoption.
Q: How does Fed policy impact Bitcoin?
A: Lower rates typically weaken the dollar, making scarce assets like BTC more attractive.
Final Thoughts
For crypto’s bull run to extend into 2025, regulatory progress and macroeconomic support must align. Investors should watch:
- Trump’s early policy moves.
- Fed rate decisions.
- SEC enforcement trends.
👉 Stay updated on crypto market trends
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