PANews, December 4 - Singapore's crypto investment firm QCP Capital stated today that a well-established cryptocurrency that has been around since 2021 has staged a spectacular rebound in 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 such as ADA, HBAR, and XLM also achieved increases of 300%, 800%, and 600%, respectively. The frenzy in the altcoin market is attributed to Trump announcing a proposal in November aimed at eliminating the capital gains tax on cryptocurrencies issued by U.S. companies. Additionally, expectations of a friendly crypto U.S. Cabinet have further fueled this excitement. Rumors suggest that Gary Gensler, who has been a headache for the crypto community, will be replaced by Paul Atkins, leading the U.S. Securities and Exchange Commission (SEC). Other candidates also seem to have 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 curfew announced in South Korea hardly quelled the frenzy in the market. After the news of the curfew broke, South Korean traders reduced their positions, causing Bitcoin to drop to a low of 93,500. However, the subsequent buyback actions in major cryptocurrencies and altcoins only indicate how strong the market's buying intent is. We have indeed seen some macro risks recently. Concerns about rising inflation have led the market to reduce its expectations for U.S. interest rate cuts in 2025 to just three times. Geopolitical risks from Trump regarding Mexico, Canada, and the BRICS countries also exist. Despite these risks, we believe the cryptocurrency market still has prospects to rise. Trump's team is likely to formulate crypto-friendly policies, thereby attracting more interest from institutional investors. It is possible for Bitcoin to break the $100,000 barrier, while Ethereum reaching an all-time high seems more like an impending reality than a dream.
