President Trump's Victory Is Triggering an Explosion in Crypto Prices |
Last week, Daily editor Teeka Tiwari made his first-ever official presidential election prediction. |
As he predicted, Donald Trump was reelected as president of the United States. |
This is a hugely bullish catalyst for the crypto markets, especially bitcoin. And as bitcoin goes, so do altcoins. |
As the election results came in Tuesday night and it became clear President Trump would win, we saw bitcoin reach a new all-time high of $75,400. |
Altcoins like Ethereum (ETH) and Solana (SOL) are up 8% and 15%, respectively. Smaller altcoins like Uniswap (UNI), Bittensor (TAO), and Aave (AAVE) have run up 30%, 24%, and 23%, respectively overnight. |
The market is playing out exactly as Teeka predicted during his special election update. |
We'll have more post-election analysis of the crypto market coming soon. |
But today, I'll show you why we're still early in what Teeka and I believe will be an epic bull market… And why there's still time to position yourself for life-changing gains from the digital asset class. |
We're Still Early in the Adoption Cycle |
Longtime readers of Digital Asset Daily know the fundamental driver behind the price of bitcoin is the increase in usage and adoption. |
As long as that narrative remains intact, the price of bitcoin will go higher. And as bitcoin goes, so do altcoins. |
We've seen this story play out before… |
If you used the internet in the early 1990s, the experience is completely unrecognizable from what we see today. |
If you were lucky enough to get a connection, it was slow and spotty. It was virtually impossible to do anything other than send simple text messages. |
You couldn't email vacation photos to your friends… Buy clothes from online retailers… Or video chat with family members who live in another town. |
In the 1990s, the internet was primarily the domain of computer geeks and nerds. But as computer technology improved, internet adoption exploded. |
Today, there are an estimated 5.52 billion internet users worldwide. That's about 67.5% of the global population. |
Early investors who had foresight into this usage growth made a fortune as internet adoption skyrocketed. |
Since 1990, tech giants like Apple, Microsoft, and Oracle are up 70,634%, 68,122%, and 29,493% respectively. And that doesn't include dividends. |
Holding these stocks over the years hasn't been easy, though. You would've experienced drops of 69%, 78%, and even 84% along the way. |
But if you believed the internet would continue to see mass adoption and held on during these shakeouts, you made a fortune. |
We're seeing the same scenario play out with crypto. |
The user experience on the blockchain is improving but still terrible compared to the internet. (Blockchain is the technology underlying cryptocurrencies.) |
Transactions are slow and expensive. And if you are new to crypto, you may need to watch a 30-minute video just to learn how to send digital assets across the blockchain. |
These technical challenges are common with early-stage technologies like the blockchain. Yet despite the drawbacks (and all the naysayers), we're seeing mass adoption of digital assets. |
With President Trump's victory now sealed and adoption growing, we'll see an explosion in prices |
Crypto's Adoption Story Is Only Getting Better |
Even before President Trump won reelection, you couldn't have asked for a better year for adoption than 2024. |
On the financial side, we saw Wall Street launch several spot bitcoin and Ethereum exchange-traded funds (ETFs). These funds will give millions of investors exposure to the digital asset class. |
On the technological front, payment processors started to adopt stablecoins, which enable you to send value to anyone, anywhere in the world, at any time for little to no cost. |
The combination of these two trends has led to an explosion of usage, as I'll show you below. But let's start with ETFs first… |
● ETF Adoption |
In January, the Securities and Exchange Commission (SEC) approved the launch of 11 spot bitcoin ETFs. In July, the agency approved eight spot Ethereum ETFs. |
Like stocks, ETFs are securities traded on exchanges. They can hold stocks, bonds, commodities, and other securities. Usually, they track an index or asset class. |
Bitcoin and Ethereum ETFs allow investors to buy crypto without having to worry about managing private keys or knowing how to use a self-custody wallet. So for many investors, they're simpler to own than directly owning BTC and ETH. |
The success of the bitcoin ETFs has gone beyond expectations. |
Today, spot bitcoin ETFs hold over $60 billion in assets. By comparison, it took gold ETFs five years to hit $50 billion in holdings. |
And the inflows show no signs of slowing down. |
Last week, bitcoin spot ETFs saw $2.2 billion in inflows. That's $700 million more than the first gold ETF brought in during its entire first year. |
This is hugely bullish because ETFs have paved the way for pension funds to invest in the asset class. |
Since the spot bitcoin ETFs went live, we've seen state pension funds of Michigan and Wisconsin invest in bitcoin. With announcements from Jersey City, Arizona, and Florida taking steps to invest. |
State and local pension funds alone manage $6 trillion in assets. This is a story the mainstream press is completely missing and isn't priced in yet. |
● Stablecoin Adoption |
On the technology side, we're seeing massive adoption of stablecoins. |
Unlike some cryptocurrencies that require numerous steps just to purchase... Stablecoins are relatively easy to use, which explains the increase in their usage. |
U.S. dollar stablecoins are tokens that can be converted into dollars. They are cryptographic tokens pegged 1-to-1 to the dollar. |
So a $1 stablecoin will convert into $1 of real-world money. They're called "stable" coins because they don't fluctuate in value the way bitcoin does. |
Today, there are dozens of stablecoin issuers that allow investors to turn cash into tokenized dollars. |
During the second quarter of this year, stablecoins processed $8.5 trillion across 1.1 billion transactions. By comparison, Visa – the world's largest payment processor – saw $3.9 trillion in transaction volume over the same period. |
Tether, the world's largest stablecoin issuer with $120 billion in stablecoins in circulation, is on track to generate over $10 billion in profits this year. |
That's why we're seeing the biggest players in the payment processing industry invest their time and money in blockchain and stablecoins. |
Stripe, one of the largest payment processors in the world, recently purchased Bridge for $1.1 billion. As I wrote last week, Bridge makes it easier for businesses to accept stablecoin payments without having to deal directly with digital tokens. |
And both Visa and MasterCard are following Stripe. |
Visa has expanded stablecoin settlement capabilities over its VisaNet. And Mastercard launched a stablecoin digital wallet last year to allow retail customers in the Asia-Pacific region to spend their stablecoins anywhere Mastercard is accepted. |
● Crypto Usage |
The best way to measure crypto adoption is to look at usage. |
According to the venture capital firm a16z, total crypto usage is at an all-time high with 220 million users. |
 | Source: a16z |
|
As you can see in the chart above, the growth rate of blockchain usage mirrors the growth rate of the internet during the early '90s tech boom. |
We're About to See a Bull Market for the Ages |
Based on the fundamentals, bitcoin was already headed for an epic break out. |
But President Trump's victory will act like a barrel of TNT on top of a crate of nitroglycerin sitting on top of 100 tons of weapons-grade plutonium. |
Just think about it… |
On the financial side, we're seeing institutions and millions of individual investors get exposure to this asset class through ETFs. |
On the technological side, we're seeing vast improvements in transaction speeds, ease of use, and lower costs via stablecoins. That's led to an explosion of user adoption. |
The adoption story is why we're invested in this asset class. And as long as that story is intact, you want to continue to hold these assets. |
But we've just added a new catalyst that wasn't previously priced in with the election outcome. |
If you haven't already, I'd recommend adding some bitcoin (BTC) and Solana (SOL) to your portfolio. |
If you're fully allocated to quality crypto assets, the only thing you need to do is be patient. |
We're seeing an explosion in adoption from both individual users and institutions. And with bitcoin breaking to new highs, we can already see that the election has triggered the next leg higher in crypto assets. |
Regards, |
Houston Molnar |
|
|
Tidak ada komentar:
Posting Komentar