QCP Capital: Trump's proposal to eliminate capital gains tax on cryptocurrencies issued by U.S. companies sparks frenzy in the altcoin market

【QCP Capital: Trump's proposal to eliminate capital gains tax on cryptocurrencies issued by U.S. companies sparks frenzy in the altcoin market】According to Golden Finance, on December 4, Singapore-based crypto investment firm QCP Capital stated today that a spectacular rebound has occurred in established cryptocurrencies, which have existed since 2021, over the past two weeks. XRP broke its 2021 high of $2, with an astonishing increase of 400% since November, reaching a peak price of $2.90. Other established cryptocurrencies like ADA, HBAR, and XLM also achieved increases of 300%, 800%, and 600% respectively. The frenzy in the altcoin market is attributed to Trump's announcement in November of a proposal aimed at eliminating the capital gains tax on cryptocurrencies issued by U.S. companies. Furthermore, expectations for a friendly cryptocurrency cabinet in the U.S. have further fueled this trend. Rumors suggest that Gary Gensler, who has been a headache for the cryptocurrency community, will be replaced by Paul Atkins, who will lead the U.S. Securities and Exchange Commission (SEC). Other candidates also seem to hold a friendly attitude towards cryptocurrencies. Howard Lutnick, currently the CEO of Cantor Fitzgerald, is set to become the Secretary of Commerce. Cantor Fitzgerald is currently negotiating with Tether, which makes Lutnick appear to be a supporter of cryptocurrencies. Yesterday, the martial law imposed in South Korea did little to quell the market's frenzy. After the news of the martial law was released, South Korean traders reduced their positions, and Bitcoin fell to a low of 93,500. However, the subsequent buyback activity in major cryptocurrencies and altcoins only indicates how strong the market's buy-side willingness is. We have indeed seen some macro risks recently. Concerns about inflation rising again have led the market to reduce expectations for U.S. interest rate cuts in 2025 to just three times. Geopolitical risks posed by Trump concerning Mexico, Canada, and the BRICS countries are also present. Despite these risks, we believe the cryptocurrency market is still likely to rise. Trump's team is likely to formulate cryptocurrency-friendly policies to attract more institutional investors' interest. It is possible for Bitcoin to break the $100,000 mark, and Ethereum reaching a new historical high seems more like an imminent reality rather than a dream.