Matrixport Research: SEC Restructuring, Investors May Continue to Benefit in 2025

The newly elected President of the United States, Trump, has officially nominated cryptocurrency advocate Paul Atkins to serve as the chairman of the U.S. Securities and Exchange Commission (SEC). Atkins advocates for respect for free markets, capital formation, and investor choice, emphasizing the important role that digital assets and other innovative technologies play in driving U.S. economic growth.

The market responded quickly, and after two weeks of consolidation, the price of BTC finally broke through the $100,000 mark. At the same time, Trump publicly proposed on November 19 to eliminate the capital gains tax on cryptocurrencies issued in the U.S., a move that is significant for payment-focused U.S. cryptocurrencies and will greatly boost adoption rates. Affected by these events, market sentiment is extremely optimistic, with traders full of confidence, preparing to build positions for further increases in the future. BTC perpetual contract trading activity has surged, with the annualized funding rate skyrocketing to +80%, and futures open interest reaching a new cycle high. However, due to the explosive trading volume of XRP (which peaked at $7.5 billion in the past two days), BTC's dominance has dropped to 54.3%, the lowest point since April 2024.

At the same time, the ISO 20022 standard will become mandatory in November 2025. Cryptocurrencies like XRP that comply with the ISO 20022 standard are particularly suitable for acceptance by banks and central banks for settlement and other financial functions.

ISO 20022 compliance enhances the applicability of cryptocurrencies to financial institutions, aligning them with international banking standards, and is an important step toward integrating cryptocurrencies into the global financial system. The narrative surrounding the ISO 20022 standard and the SWIFT payment network, combined with Trump's favorable policies for cryptocurrencies, is expected to continue driving the upward momentum of altcoins before the full implementation of the ISO 20022 standard in 2025.

Since Trump's election, trading patterns have changed significantly. In recent weeks, the altcoin market has presented increasingly attractive investment opportunities. Bitcoin still shows strong momentum, but the widely anticipated cycle peak may differ from previous ones. Traditional cycle theories may have become outdated, and changes in market dynamics could prevent the kind of severe cyclical downturns seen in the past.

During price declines, Bitcoin may attract stable buyers. Considering that when these ETFs launch in January 2024, Bitcoin's trading price is between $40,000 and $45,000, while the average purchase price for Bitcoin ETF buyers is around $65,000, the price would need to drop 35% for these buyers to incur losses. Conversely, these investors are currently enjoying substantial profits and may consider increasing their allocations as 2025 approaches.

The above views are partly derived from Matrix on Target. Contact us for the complete report on Matrix on Target.

Disclaimer: The market carries risks, and investment should be approached with caution. This article does not constitute investment advice. Trading in digital assets can involve significant risks and volatility. Investment decisions should be made after careful consideration of personal circumstances and consultation with financial professionals. Matrixport is not responsible for any investment decisions made based on the information provided herein.