The Future of Crypto
In the last 24 hours, BTC hit its all-time high of $98,831.08. The question on everyone’s mind is whether it will continue to climb and when it will hit its ceiling.
What is driving the price right now?
Historically, BTC has seen bullish markets in the 4th quarter following a halving, which occurs every four years. Crypto is also becoming institutionalized and is no longer seen as an outcast in the financial world. The approval of crypto ETFs by the SEC has allowed massive institutional money to flow into the crypto market, giving it greater legitimacy.
Additionally, Donald Trump’s election as the 47th president of the United States has been a major catalyst igniting this bull market. BTC is up 40% since then. Throughout his campaign, Trump hinted at the idea of the United States government using crypto, promising to make the U.S. the "crypto capital of the planet" and to accumulate a national stockpile of Bitcoin. Furthermore, Trump Media (DJT) is reportedly in talks to acquire the crypto trading and brokerage platform Bakkt (up 168% in the last 5 days). Trump also met with the CEO of Coinbase to discuss the future of crypto.
These headlines, coupled with the institutionalization of crypto and historical trends of bull markets, have sent crypto prices soaring, with BTC reaching new highs daily.
What do we know?
Crypto tends to have short bull periods, usually lasting about two months. During these periods, established coins like BTC and ETH set new highs, finding resistance at levels higher than previous cycles. The total crypto market cap, which tracks over 15,000 coins, is now at an all-time high of over $3 trillion. This surpasses the market cap achieved during the bull runs of early 2020 and early 2024.
Where does this end?
Only time will tell. All past price ceilings have been broken. Crypto has evolved from the laughing stock of the financial world to an asset class with expectations as high as $1 million per Bitcoin. This is uncharted territory. However, as history often repeats itself, we are likely to see new highs in the future.
Where to invest?
The obvious candidates are BTC and ETH. XRP has a promising future and is emerging as a leading coin for transferring value between different assets. In the traditional stock market, companies involved in crypto mining, such as $MSTR and $MARA, have been experiencing explosive growth. Additionally, ETFs offer an opportunity to spread risk while capturing the growth potential of crypto.
