In very important coins such as Bitcoin, (Cryptocurrency: BTC) Solana, (Code: SOL) and XRP (Crypto: XRP) With prices hovering near all-time highs, now is a good time to be a crypto investor. And soon, there are some new developments waiting in the wings that could be great times.
Here are the catalysts that could bring a new gold rush to these currencies, potentially by the end of the year:
You’ve probably heard that the new Trump administration has floated the idea of a Strategic Bitcoin Reserve (SBR). There is no guarantee that this will happen, but based on previous discussions with the President’s transition team, some investors expect formal policy updates to occur within the first 100 days of a new administration. I predict that.
If that happens, it will be a very strong catalyst for Bitcoin in the first quarter of this year. Perhaps no one supports the value of a coin more than the U.S. government. If SBR is established, it will greatly affirm the core of Bitcoin. investment thesis.
However, the new government may do more than create the SBR. Recently, the idea of SBR has been expanded to potentially become a national cryptocurrency repository. If this concept is implemented, it would mean the government could also buy Solana, XRP, and possibly other major US-based cryptocurrencies.
This means that by using the government’s financial influence to exert widespread buying pressure, the prices of these coins could be higher in the long run than investors expect them to be. It could start happening soon.
The cryptocurrency market is very sensitive to borrowing costs.
when interest rate Attractive yields on risk-free Treasury bills give investors little reason to buy more speculative assets like cryptocurrencies. In contrast, when it becomes cheaper to borrow money, investors have to take more risks to get a solid return because even sitting on the safest investments won’t give you a favorable yield.
In that sense, Bitcoin, Solana, and XRP are all assets that benefit when interest rates fall. If the Fed continues its campaign to lower interest rates in 2025 as it did in 2024, it is natural to expect more funds to flow into cryptocurrencies.
But the US Federal Reserve is not alone in lowering borrowing costs. Many international central banks, including the UK, EU and China, are also considering or have already cut interest rates. And while it’s not certain that investors in these areas will flock to these major cryptocurrencies right away, it’s likely that at least some cryptocurrencies will emerge with some of their capital in the coming years. , which is a bullish view for the three companies.
