According to Golden Finance, on December 4, QCP Capital, a Singaporean crypto investment institution, published an article stating 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 the highest price reaching $2.90. Other old cryptocurrencies such as ADA, HBAR, and XLM have also achieved increases of 300%, 800%, and 600%, respectively.
QCP Capital said the reason for the altcoin market frenzy is that Trump announced a proposal in November to eliminate capital gains taxes on cryptocurrencies issued by U.S. companies. In addition, expectations for a crypto-friendly U.S. cabinet have added fuel to 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 U.S. 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 negotiations with Tether, which makes Lutnick look like a supporter of cryptocurrency.
QCP Capital noted that the martial law order issued by South Korea did little to quell the market's enthusiasm. After the news of martial law came out, Korean traders reduced their positions and Bitcoin fell to a low of 93,500. But the subsequent buyback behavior 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 the resurgence of inflation have led the market to reduce expectations for the number of US interest rate cuts in 2025 to just three. 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 expected to rise. Trump's team is likely to formulate cryptocurrency-friendly policies, thereby attracting more interest from institutional investors. Bitcoin breaking through the $100,000 mark is possible, and Ethereum's record high looks more like an upcoming reality than a dream."
