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Bitcoin (BTC -2. 78%) is the largest cryptocurrency in the world. Its market capitalization of $ 1. 8 billion represents more from all cryptocurrencies in circulation, which is lately 3. 4 billion dollars.
Bitcoin rose 120% in 2024, and a vital component of this gain was generated after the US electoral victory of Donald Trump on November 5. The president-elect has campaigned in a Pro-Crypto program, so that his incoming management can provide a set of policies that a new pricing wave in the industry.
So, do investors buy Bitcoin before Trump officially occupies the workplace on January 20?
The Bag and Securities Commission (SEC) is guilty of the regulation of cryptocurrencies that may correspond to the definition of monetary values. Its president for 4 years, Gary Gensler, is a very vocal critic of the industry. Even if the company approved dozens of Bitcoin Bitcoin exchangers (ETF) its mandate, did it only after having lost a legal dispute of one of the main transmitters.
Gensler announced that he would move on January 20. The resignation of this position is standard when a new administration will assume the position. Trump has already appointed Paul Atkins to take his position, waiting for the approval of the Senate. Atkins is recently co -silla of a cryptography defense organization called Token Alianza, there is no doubt about the position in which it is in virtual assets.
But Trump’s management can be intelligent for Bitcoin, in particular. The incoming president has taken radical concepts such as the status quo of a strategic Bitcoin reserve, which can involve the United States government to actively buy cryptocurrencies in the loose market. It would almost be a bullish catalyst.
The Government already includes around $ 18. 6 billion in Bitcoin that seized criminals and bad players, which can be a starting point for Trump’s strategic reserve. But it is not transparent if you can really release this initiative through itself, or if you want Congress, which would do things a little more complicated.
Until now, no cryptocurrency has shown its price as means of exchange. Even as an industry leader, Bitcoin is only accepted as payment of goods and through 7,928 merchants worldwide. Many of them are difficult to understand the suppliers of internetarray cryptography and even online game houses.
It is very complicated that a long -term currency without general adoption in the component of consumers and companies. In the case of Bitcoin, investors buy it because they think it is a giant price reserve, a little as a virtual gold edition.
It is absolutely decentralized, therefore, it is controlled through any person, government or business. In addition, it works in a safe registered formula called blockchain, and has a constant offer of 21 million pieces that will not be “extracted” before the year 2140. These attributes make Bitcoin a very horny position for the Park’s cash relationship with a Active as physical gold, which is not very practical to buy, buy or sell.
Cathie Wood’s Ark investment management believes that a value of $ 1. 5 million consisting of Bitcoin can be on cards until 2030, based on 8 prospective factors. Recognition as virtual is one of them, as well as institutional adoption. FNB Bitcoin facilitates the fact that institutional investors invest in the cryptocurrency in a regulated manner.
Ark also predicts that an expanding number of and governments will buy Bitcoin in their balance sheets in the future, which corresponds to Trump’s preference for a strategic reserve.
Bitcoin itself has faced any safe headache in the last 4 years, despite the hostility of the agency towards the industry in general. Since there is no one or a Bitcoin corporate state (or issue more supply), it does not correspond to the definition of monetary security. In addition, there is no one for regulators to continue.
My point is that Bitcoin will probably not get advantages of a more friendly dry. However, the creation of a Bitcoin reserve within the United States government would be that Almaximum builds its value. An official announcement would probably send investors in a speculative frenzy, because it would be a transparent approval of the world’s most hard country, which adds legitimacy to cryptocurrency.
Therefore, there are tactics from which Trump’s management can create a genuine cost for Bitcoin. But remember, it is a speculative asset that investors buy with the hope that someone pays a higher value in the future. It does not have a genuine use in the global genuine to help its long -term cost, so there is no way to expect where it can be in a few years.
Buying some bitcoin before January 20 is a bad idea. Do not bet on the farm. A position that represents 1% or 2% of the general price of its general investment portfolio can be the way to follow.
Anthony Di Pizio has no position in the mentioned movements. Motley Fool has positions and recommends Bitcoin. The Motley Fool has a dissemination policy.
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