Fears that a spike in crypto value at the end of 2024 appears to be unfounded as records continue to be broken among leading currencies. The return of a pro-crypto president in the shape of Donald Trump sparked a massive boost in crypto values at the end of 2024, and continued confidence has seen some of the top currencies maintain and surpass record prices.
Despite being seen as a volatile commodity, moves to update regulations and a commitment to creating an environment that will facilitate industry growth in the US have had a beneficial effect.
Crypto Values
Bitcoin is the original and most popular cryptocurrency, and news that the US was set to support the industry saw it smash through previous records, peaking at $124,210.63 on August 14th. The recent price surge has been attributed to a US equity futures rise prior to key inflation reports being released.
As well as helping Bitcoin, this also had a positive effect on platforms like Strategy, Galaxy Digital, and Coinbase. Purchasing during trading hours in Asia has fueled the surge on the back of US debt expansion. Ethereum's native cryptocurrency Ether has also experienced growth in recent weeks, helping it rise above $4,000 in value. Other companies to benefit from crypto-related surges include Bitmine Immersion Technologies, whose share prices rose by 25%.
Rising crypto values help to improve confidence and visibility, enhancing industries and increasing adoption rates. A wider selection of retailers and services has begun to accept crypto, with other consumers also able to invest through predictions in coinfutures.io.
Genius Act
July saw the US pass the Genius Act, which sets out a regulatory framework for stablecoins, with the promise of further regulatory change to follow. Stablecoin values are pinned to other assets, like the dollar, while other cryptocurrencies' values are more volatile.
A similar regulatory framework for other cryptocurrencies is currently going through the relevant channels and is expected to provide greater long-term stability to the industry and attract new projects.
Potential Change to 401K Retirement Plans
Another recent development that could have a positive impact on the crypto industry is President Trump’s plans to amend current 401K retirement plan regulations to allow riskier investments, including cryptocurrencies.
At present, US workers don’t pay into a guaranteed pension pot; instead, money goes towards investments, which employers also contribute to. Current 401K rules prohibit risky investments from being integrated into these plans, but Trump has signed an order that will see the relevant authorities explore the potential for regulatory change.
Critics argue that increased risks should not be welcomed, but this could be another step in securing the long-term future of cryptocurrencies in the US. Consumers have a stake in the success of cryptocurrencies will improve their chances and will see businesses becoming more open to accepting digital currency payments.
Cryptocurrencies are in an extremely strong position in 2025, as evidenced by current values. Regulatory changes should also help with their long-term futures, especially established cryptocurrencies like Ethereum and Bitcoin.
