PANews December 4 news, Singapore crypto investment agency QCP Capital published today that the old cryptocurrencies that have existed since 2021 have staged a spectacular rebound in the past two weeks. XRP broke the 2021 high of $2, and has risen an astonishing 400% since November, with a peak price of $2.90. Other old cryptocurrencies such as ADA, HBAR and XLM have also achieved increases of 300%, 800% and 600% respectively. The reason for the frenzy in the altcoin market is that Trump announced a proposal in November to eliminate capital gains taxes on cryptocurrencies issued by US companies. In addition, expectations for a cryptocurrency-friendly US cabinet have fueled the craze. It is rumored that Gary Gensler, who has been a headache for the cryptocurrency community, will be replaced by Paul Atkins to lead the US Securities and Exchange Commission (SEC). Other candidates also seem to be friendly to cryptocurrencies. Howard Lutnick is currently the CEO of Cantor Fitzgerald and is about to become Secretary of Commerce. Cantor Fitzgerald is currently in talks with Tether, which makes Lutnick look like a supporter of the cryptocurrency.
Yesterday, the declaration of martial law in South Korea did little to quell the market’s frenzy. Bitcoin fell to a low of $93,500 as South Korean traders reduced their positions following the news of martial law. But the subsequent buyback in major cryptocurrencies and altcoins only shows how strong the market’s willingness to buy is. We do see some macro risks in the near term. Concerns about a resurgence of inflation have led the market to scale back expectations for the number of US rate cuts to just three by 2025. There are also geopolitical risks posed by Trump’s stance on Mexico, Canada, and the BRICS. Despite these risks, we believe that the cryptocurrency market is still poised to move higher. Trump’s team is likely to enact crypto-friendly policies that will attract more interest from institutional investors. Bitcoin’s move above $100,000 is possible, while Ethereum’s new all-time high looks more like an imminent reality than a dream.
