SEC Leadership Change, Investors Could Continue Benefiting into 2025

As predicted, U.S. President-elect Trump has officially nominated cryptocurrency advocate Paul Atkins as the new Chairman of the U.S. Securities and Exchange Commission (SEC). Atkins advocates for the respect of free markets, capital formation, and investor choice, emphasizing the critical role of digital assets and other innovations in driving U.S. economic growth.

The market responded swiftly, with Bitcoin’s price breaking through the $100,000 mark after two weeks of consolidation. At the same time, Trump’s public proposal on November 19 to eliminate capital gains taxes on U.S.-issued cryptocurrencies is significant for U.S. payment-focused cryptocurrencies, as it will greatly drive adoption. Following these events, market sentiment is overwhelmingly bullish, with traders positioning themselves optimistically for further upside. Bitcoin’s perpetual futures activity has surged, with the annualized funding rate soaring to +80%. Futures open interest has hit a new cycle high. However, due to a massive surge in XRP trading volume (with the highest volume reaching $7.5 billion in the past two days), Bitcoin’s dominance has fallen to 54.3%, the lowest point since April 2024.

Meanwhile, the adoption of ISO 20022, which will become mandatory by November 2025, represents a significant step in integrating cryptocurrencies into the global financial system, especially for cross-border payments and other institutional use cases. Cryptocurrencies like XRP, which are ISO 20022-compliant, are particularly well-positioned to be accepted by banks and central authorities for settlement and other financial functions.

ISO 20022 compliance enhances the suitability of cryptocurrencies for financial institutions by aligning with international banking standards. This marks a crucial step for cryptocurrencies to become part of the global financial infrastructure. The narrative around the ISO 20022 standard and the SWIFT payment network, combined with Trump’s crypto-friendly initiatives, could sustain altcoin momentum until the full implementation of the standard in 2025.

Since Trump’s election, the trading landscape has shifted significantly. Over the past few weeks, the altcoin market has presented increasingly attractive investment opportunities. While Bitcoin continues to show strength, the widely expected cycle peak may play out differently than before. Traditional cycle theories could be outdated, as the changing market dynamics may prevent the sharp cyclical downturns seen in previous years.

A steady buyer’s bid for Bitcoin may emerge during price declines. Considering Bitcoin was trading at around $40,000 to $45,000 in January 2024 when these ETFs were introduced, and the average Bitcoin ETF buyer entered at approximately $65,000, prices would need to drop by 35% for these buyers to incur losses. Instead, these investors are currently enjoying substantial profits and may consider increasing their allocations as we approach 2025.

Disclaimer: The above content is for informational purposes and reference only. The content does not constitute investment advice. Digital asset transactions can be precarious and volatile. Investment decisions should be made after carefully considering individual circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.

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