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.
In a bear market, it’s normal for investors to become pessimistic about the long-term potential of their holdings.
And, tragically, this pessimism prevents us from purchasing assets precisely when they are cheapest and offer the greatest potential economic return. This is called the bear market blues, and is an irrational condition that can drag down the entire market for many quarters in a row.
Even if assets begin to recover from a downturn, it may take a considerable amount of time for people to realize that the situation is no longer as dire as it was before. It usually takes consistent and strong growth to heal depression and restore feelings of optimism.
Next, take a look at these graphs.
Did you notice anything?
In the case of Bitcoin, Solana, and XRP, investors who bought the tokens at the absolute height of the speculative frenzy in 2021 and have held on to date have reaped some gains. The coin is clearly showing signs of life again. This is what it takes to cure the bear market blues.
The takeaway here is that once investors shake off the remaining bonds from the bear market, they’ll be more willing to buy en masse again, and when that happens, the major cryptocurrencies are very likely to gain momentum.
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In rare cases, our team of expert analysts “Double Down” stock Recommendations for companies that are likely to take off. If you’re already worried that you’re missing out on an investment opportunity, now is the best time to buy before it’s too late. And the numbers speak for themselves.
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apple: If you invested $1,000 when it doubled in 2008; There will be $42,357!*
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We currently have “double down” alerts on three great companies, and we may not see an opportunity like this again anytime soon.
*Stock Advisor will return as of January 21, 2025
Alex Karkidi I have positions in Bitcoin and Solana. The Motley Fool has positions in and recommends Bitcoin, Solana, and XRP. The Motley Fool has Disclosure policy.
Three potential catalysts that could send Bitcoin, Solana, and XRP skyrocketing in 2025 Originally published by The Motley Fool
