According to the New York Digital Investment Group (NYDIG), holding Bitcoin is transitioning from a choice to a necessity for investors.
Greg Cipolaro, NYDIG’s global head of research, emphasized in a November 11th report,
“While some investors have allocated to Bitcoin, the most common allocation for investors is still zero. There are no excuses now.” He further stated, “It is now becoming a political imperative.” Cipolaro warned that “Not owning the asset is going to become a liability in the future,”
Source: NYDIG
With an 84% price surge this year, Bitcoin has soared to nearly $84,800, according to Brave New Coin’s Bitcoin Liquid Index. BTC’s remarkable jump was partly fueled by optimism linked to Trump’s win. Many investors and the crypto community expect the election outcome to shape a friendlier regulatory framework for digital assets, potentially dismantling obstacles that have previously stalled industry growth.
Source: Brave New Coin’s Bitcoin Liquid Index
Regulatory Easing in 2025 Could Reshape Crypto Market
A significant shift is expected as regulatory policies restricting cryptocurrency companies are loosened. By 2025, new leadership in key federal agencies will likely lead in pro-crypto legislation. Key positions, including heads of the Senate Banking Committee, SEC, FDIC, OCC, Attorney General, and Treasury, will see changes, potentially resulting in a more supportive approach to digital assets.
This political shift allows the crypto sector to influence top-level decision-making. Including cryptocurrencies and blockchain technologies in the financial mainstream seems promising, though outcomes will depend on how new appointees act. The industry has sought regulatory clarity for years, and recent elections may speed up digital currency adoption.
NYDIG highlights Bitcoin’s growing importance. Cipolaro emphasized, “Investors who dismiss or ignore the asset will face financial risk.” As Bitcoin outperforms other assets and with regulated investment products like ETFs becoming more accessible, the argument for Bitcoin ownership strengthens.
Republican Shift May Spur Crypto-Friendly Policies
The crypto industry has sought clearer regulations for nearly eight years. Political action committees (PACs) dedicated to crypto played a pivotal role in recent elections, investing $135 million in campaign donations and advertising. Their goal is to back candidates who grasp the potential of digital assets and support policies that encourage growth and innovation by reducing restrictions.
With Republicans now controlling the White House and Congress, major government agencies are expected to adopt a more crypto-friendly stance. Agencies like the SEC, OCC, and FDIC will likely introduce policies designed to accelerate cryptocurrency adoption. For example, new SEC leadership could establish a more defined framework for crypto assets, easing existing restrictions and fostering a supportive environment.
Key legislative initiatives such as the Financial Innovation and Technology for the 21st Century Act (FIT21) and proposed stablecoin regulations could undergo substantial revisions. These laws seek to build clear frameworks for digital assets and establish precise standards for stablecoin issuance and backing. While the Republican-led Congress may emphasize innovation over stringent oversight, significant legislative changes may be delayed until the next Congress session.
U.S. Eyes Bitcoin Reserve for Economic Security
Senator Cynthia Lummis introduced the BITCOIN Act to establish a strategic Bitcoin reserve in the United States. The proposal aims to enable the federal government to hold Bitcoin as a safeguard against economic instability, enhance national security, and signal support for digital assets. The plan seeks to have the Treasury acquire 1 million Bitcoins, potentially reaching 1.05 million, valued at roughly $76 billion based on current market prices.
Former President Trump has proposed converting the U.S. government’s current holdings of 204,000 Bitcoins, worth about $15 billion, into a strategic reserve. However, legal hurdles could complicate this, as a large portion of these Bitcoins belong to identifiable victims of law enforcement actions. For instance, 120,000 Bitcoins are tied to Bitfinex, a sister company of Tether, which could obstruct the reserve’s establishment.
Bitcoin’s price movements typically follow four-year cycles. After months of sideways trading, the recent surge suggests the cycle is continuing. ETF flows support this, with significant inflows after the election results. On Thursday, IBIT recorded a historic $1.12 billion single-day inflow, reflecting strong investor confidence and continued Bitcoin accumulation by liquidity providers.
Source: NYDIG
