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Reject modernity, embrace tradition. These 4 four words would have served you well in navigating (and profiting!) from crypto markets in the past week.
Seasoned coins that have been around since 2021 have staged a spectacular rally in the past two weeks. XRP broke the 2021 high of $2, staging a spectacular 400% move since November to top at $2.90. Other aged coins such as ADA, HBAR and XLM have also made moves of 300%, 800% and 600% respectively.
So why have these coins been pumping, and why is the altcoin market so juiced up?
Trump announced a proposal to eliminate capital gains taxes on cryptocurrencies issued by American companies in November. This spark ignited the mad frenzy in altcoin markets that has persisted till today. The anticipation of a crypto friendly cabinet has added more fuel to the fire.
We didn’t start the fire. Trump did.
Gary Gensler who has been a thorn in the crypto communities’ side is rumoured to be replaced by Paul Atkins to lead the SEC. Other candidates also look to be crypto friendly. Howard Lutnick, current CEO of Cantor Fitzgerald, is set to be Commerce Secetary. Cantor Fitzgerald is currently in talks with Tether, making Lutnick look like a crypto proponent.
The enactment of martial law in Korea did little to dampen animal spirits yesterday. BTC traded to a low of 93500 as news of martial law hit the tape and Korean traders pared exposure. The buyback following that in both Majors and Alts only goes to show how strongly bid the market it.
We do see some macro risk in the near term. Worries of inflation rearing its ugly head again have caused markets to pare back expectation of US rate cuts to just 3 in 2025. Geopolitical risk from Trump against China, Mexico, Canada and BRICS are also present.
Despite the risks, we think the crypto market is poised for higher. Trump’s team will most possibly enact crypto friendly policies, drawing in more institutional interest. BTC above 100k is possible, and ETH above ATHs looks more a near reality than a dream. Respect the pump.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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