With all -important coins such as Bitcoin. (Crypto: BTC) Solana. (Crypto: Sol) and Xrp (Crypto: XRP) Always hovering before them, it's a good time to be a cryptocurrency investor. And, very soon, a few new developments stayed in the wings that could make it an absolutely fantastic time.
These are the catalysts that could guide in a new gold rush for this currency, possibly before the end of the year.
By now, you've probably heard that Trump's new administration has floated the idea of a strategic Bitcoin Reserve (SBR). Although there is no certainty that such a thing will end, based on the discussions with the presidential transfer team so far, some investors anticipate official policy updates within the first 100 days of the new administration.
That would make a whopper from a powerful catalyst for Bitcoin sometime in the first quarter of this year. There are probably no certifications of the value of the coin that is stronger than the US government. If the SBR is created, it will be a great confirmation of Bitcoin core investment thesis.
But the new administration may not end in making SBR. Recently, the idea of SBR has been expanded to what might become a national cryptocurrency repository. If implemented, that concept would mean that the government could also buy Solana, XRP, and perhaps other major cryptocurrencies in the US.
In short, providing a wide purchase weight with the financial shadow of a government could send these coins higher than what investors might be predicting in the long run, and could start happening very soon.
Cryptocurrency markets are very sensitive to borrowing costs.
When interest rates Progress, an appealing product on risk-free Treasury securities gives investors little reason to buy more speculative assets such as cryptocurrencies. In contrast, when money is cheaper to borrow, investors need to venture more to get solid returns because sitting on the safest investments no longer provides an advantageous product.
Similarly, Bitcoin, Solana, and XRP are all standing assets as interest rates fall. If the Federal Fund continues its campaign of introducing interest rates back in 2025 as it did in 2024, it is natural to expect more money to flow into a crypto.
But it is not just the Federal Fund in the US that reduces borrowing costs. Many international central banks, including in the UK, EU, and China, either consider or have already broken rates. And while it is not guaranteed that investors in those areas will instantly flock to these major cryptocurrencies, over the next few years some of them will probably show some of their capital, which bullish to the three.
