Despite a volatile start to the year, optimism surrounding Bitcoin has still not hesitated. After having increased by around 111% in 2024, digital assets experienced fluctuations at the start of this year. It rebounded about 15% after the initial decline. However, since mid-January, Bitcoin has been faced with another slowdown, falling by around 9.5% (February 11).
Staying faithful to his campaign promises, President Donald Trump imposed prices on China, which added uncertainty to the cryptocurrency market. China has imposed prices on American imports in retaliation, potentially reviving the trade war between the two largest world economies.
Despite the uncertainties of the trade war, the fundamental engines of digital currencies remain strong, supporting the rally planned in the coming periods. A strategic bitcoin reserve, friendly regulatory changes, growing institutional adoption and a pro-Crypto firm open the way to a very optimistic future for digital assets, prevail over the opposite winds with which the digital currency faces.
Why the Bitcoin rally is more than a simple market swing
During his second day in power, Trump started on his pre-electoral campaign promises by announcing the training of a new working group of dry cryptocurrency, fueling the enthusiasm of crypto bulls and accelerating the optimism of investors.
Recently, as cited on The Reuters, the American representative French Hill, Chairman of the Chamber’s Financial Services Committee, announced that the legislators of the two Congress Chambers would form a working group to develop policies supporting the growth of digital assets .
The administration of President Trumps has already appointed three Pro-Crypto regulators to direct key agencies, paving the way for a very optimistic future for digital assets. His selection of defender of the Crypto Paul Atkins as president of the dry and David Sacks as “AI and Czar Crypto”, serves as a strong positive signal for the industry and has the potential to trigger one of the largest races of Bull Crypto.
The possibility of a strategic bitcoin reserve for the United States further strengthens optimism, which stimulates expectations according to which digital asset estimates would double by 2025. A bitcoin reserve could help the United States grew up.
According to Yahoo Finance, Bitcoin’s achieved capitalization exceeded $ 850 billion for the first time, marking a strong recovery from the 2022 lower market, while it was around $ 400 billion. This wave highlights the growing role of Bitcoin as a reserve of value.
According to Geoffrey Kendrick, head of research on digital assets at Standard Charterd, as indicated on Yahoo Finance, the staff accounting bulletin of President Trump (SAB) N ° 121, which forced companies to record digital assets Passive, also marks an important step forward for the cryptographic industry.
Standard Charterd, by Yahoo Finance, plans that Bitcoin reaches $ 500,000 before Trump leaves his duties. The bank plans that Bitcoin reaches $ 200,000 in $ 2025 and $ 300,000 in 2026, which suggests an increase of approximately 107% and 211% compared to its current price levels, respectively.
Could Crypto join the portfolio of American sovereign heritage?
Recently, in accordance with Yahoo Finance, President Donald Trump has signed a decree to create a sovereign wealth fund, arousing speculation in the cryptographic industry that he could include investments in cryptocurrencies, accelerating the moment of Crypto And cement the American position in the foreground of crypto and cement the American position at the forefront of Crypto and Cirypto Innovation.
With several members of the Pro-Crypto firm involved in the creation of the heritage fund, the probability of cryptographic inclusion increases. Norway, with the largest sovereign fund in the world, already has $ 355 million on an exhibition in Bitcoin.
According to market players, the inclusion of digital assets in the fund can offer direct investment and prices for the cryptocurrency concerned, as well as to act as an implicit approval for the class of assets , attracting institutional and detail investors, which stimulates the general public adoption.
According to Blackrock, as indicated on Yahoo Finance, bitcoin purchases from the sovereign wealth fund could potentially push Bitcoin prices up to $ 700,000.
Institutional investor enthes
The growing interest on the part of institutional investors also stimulates the momentum, sending a positive signal to the market, reflecting the confidence of the largest institutions in digital currency.
With the recent drop in cryptography prices, institutional investors seem to take the opportunity to buy the decline. According to Coinshares, quoted on Yahoo Finance, Digital Currencs recorded its fifth consecutive week of entries, totaling $ 1.3 billion.
According to the latest file 13F from Goldman Sachs covering the fourth quarter of 2024, as indicated on Yahoo Finance, the investment bank has considerably widened its Bitcoin Etf holdings, holding $ 1.27 billion in the Ishares Bitcoin Trust Etf (Ibit), marking an increase of 88% compared to its previous deposit.
ETF to consider
Below, we mentioned some ETF for investors to increase the exposure of their portfolios to digital currencies, taking advantage of the favorable macroeconomic landscape and long-term optimistic perspectives for digital active ingredients.
Bitcoin and the wider market of cryptocurrencies can undergo short-term volatility, fluctuating from top to bottom. However, long -term trajectory remains upwards. Despite these price oscillations, the overall trend indicates growth.
For investors with a long -term horizon, increasing exposure to digital assets now and following an investment strategy “Buy DIP” can be smart investment strategies. Market decreases have valuable opportunities to accumulate bitcoin at lower prices. By buying the decline, investors can position themselves for substantial gains because the possible increase in Bitcoin is inevitable.
Investors can consider funds such as investors can look Ishares Bitcoin Trust Ibit, Bitcoin in gray levels Trust GBTC, Fidelity Wise original Bitcoin Fund FBTC, Ark 21Shares Bitcoin Etf ARKB and In the world Bitcoin ETF Trust Bitb.
Investors can also look Mini Bitcoin Mini Trust BTC, which is a cheaper alternative to Bitcoin confidence in gray levels.
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