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The election of Donald Trump promises a new era for digital assets characterized by greater regulatory certainty and a surge in market activity. The question now is whether this shift is sustainable, or a temporary reaction to the political climate. According to CCData’s latest Exchange Review report , aggregated spot and derivatives volumes, the most common measure evaluated for market participation, recorded a new yearly high in 2024, greatly exceeding the previous record set in 2021 ($75 trillion vs $64 trillion). With the election driving market activity and speculation, November and December were both record-breaking months for volumes, with $10.51 trillion and $11.31 trillion in monthly volumes, respectively. For context, the 2024 average (the biggest year on record) was roughly $6.4 trillion. You`re reading Crypto Long & Short , our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday. Concurrently, stablecoins reached a total market cap of $210.1 billion, its highest ever point, on inauguration day, according to DeFiLlama . This reflects a YTD increase of 3.3% thus far, on the back of improved liquidity conditions across both centralized and decentralized exchanges, supporting the influx of fresh volumes seen in the last few months. Assets “made in the USA” have been doing particularly well. These have been an outlier since the election, where a permissive regulatory environment, and the promise of more favourable conditions for US-based assets, have generated significant investor interest and speculation. Coins such as XRP, SOL, XLM and ALGO, which have a strong U.S.- affiliation, have seen outsized returns. Per CCData, the basket associated with these coins is up over 360%, outpacing the market by a sizeable margin. This marks an about-turn from the previous administration`s regulatory clampdown, which kept these under scrutiny for many years as they were ultimately deemed securities by the SEC. Whether this unprecedented growth continues will depend heavily on the new Trump administration’s execution of its promises on a Strategic Bitcoin Reserve, incentives for domestic bitcoin mining, and other issues. The broader market may also benefit as we enter into the expansionary phase of the bitcoin four-year historical cycle, which tends to see explosive growth in the final year. It will be interesting to see whether this new administration will impact the market cycles to which the cryptocurrency sector has grown accustomed, or whether it will mark a significant departure from historical trends.
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BlackRock CEO Larry Fink Says Bitcoin Could Run to $700,000 if Sovereign Wealth Funds Begin Allocating
The CEO of the largest asset manager in the world says that Bitcoin ( BTC ) could see drastically higher prices if sovereign wealth funds begin accumulating. Speaking with Bloomberg at the World Economic Forum (WEF) event in Davos, Switzerland, BlackRock CEO Larry Fink says that sovereign wealth funds may drive the price of Bitcoin higher as they look to hedge against “local fears” such as inflation and political or economic uncertainty. “If you’re frightened of the debasement of your currency or you’re frightened of the economic or political stability of your country, you can have an internationally based instrument called Bitcoin that will overcome those local fears. And so I’m a big believer in the utilization of that as an instrument, and so if that becomes true and you see that it could be a proper hedge against hope securities or equities, the question is, could you see it be a 2% or 5% allocation? I was with a sovereign wealth fund during this week and that was the conversation. Should we have a 2% allocation? Should we have a 5% allocation? If everybody adopted that conversation, it would be $500,000, $600,000, $700,000 per Bitcoin.” Fink’s BlackRock has embraced Bitcoin over the last year, building a $50 billion stash to back its iShares Bitcoin Trust ETF (IBIT) which went live in early 2024. In November, it was found that IBIT had surpassed BlackRock’s gold ETF (IAU) in terms of net assets – reaching over $33 billion – despite the gold ETF launching nearly two decades earlier in 2005. At time of writing, Bitcoin is trading at $104,607. Don`t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post BlackRock CEO Larry Fink Says Bitcoin Could Run to $700,000 if Sovereign Wealth Funds Begin Allocating appeared first on The Daily Hodl . CoinDesk
Bitcoin’s Early Vision: Reflecting on Hal Finney’s Contributions as Market Activity Signals New Accumulation Trends
Bitcoin’s journey from its early days to becoming a significant player in the financial landscape reflects a nuanced narrative of innovation and resilience. Amidst current market fluctuations, the historical context CoinDesk
