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QCP Capital: Trump's proposal to eliminate capital gains tax on US companies' issuance of coins has sparked a frenzy in the altcoin market

QCP Capital: Trump's proposal to eliminate capital gains tax on US companies' issuance of coins has sparked a frenzy in the altcoin market

CointimeCointime2024/12/04 13:44
By:Cointime

on December 4th, Singaporean cryptocurrency investment firm QCP Capital stated in a recent article that the long-established cryptocurrencies have experienced a spectacular rebound in the past two weeks since 2021. XRP broke the 2021 high of $2 and has risen by an astonishing 400% since November, reaching a peak price of $2.90. Other long-established cryptocurrencies such as ADA, HBAR, and XLM have also achieved increases of 300%, 800%, and 600%, respectively. The reason for the frenzy in the altcoin market is that in November, Trump announced a proposal aimed at eliminating capital gains tax on cryptocurrencies issued by US companies. In addition, the expectation of a crypto-friendly cabinet in the US has added fuel to this trend. Rumors have it that Gary Gensler, who has long been a headache for the crypto community, will be replaced by Paul Atkins to lead the US Securities and Exchange Commission (SEC). Other candidates also seem to hold a friendly attitude towards cryptocurrencies. Howard Lutnick, currently the CEO of Cantor Fitzgerald, is about to become the Secretary of Commerce. Cantor Fitzgerald is currently in talks with Tether, which makes Lutnick look like a supporter of cryptocurrencies.

Yesterday, the martial law imposed by South Korea hardly dampened the market's frenzy. After the news of martial law came out, Korean traders reduced their positions, and Bitcoin fell to a low of 93,500. However, the repurchase behavior in major cryptocurrencies and altcoins only shows how strong the market's buying interest is. We do see some macro risks in the near term. Concerns about resurging inflation have led the market to expect only three interest rate cuts by the US in 2025. There are also geopolitical risks brought about by Trump's policies towards Mexico, Canada, and BRICS countries. Despite these risks, we believe that the cryptocurrency market still has the potential to rise. Trump's team is likely to formulate crypto-friendly policies to attract more institutional investors. It is possible for Bitcoin to break through the $100,000 mark, and Ethereum's historic high seems more like an impending reality than a dream.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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