Financial Advisors Ready to Invest in Crypto After Trump’s Victory: Bitwise Survey Results
Donald Trump’s victory in the US presidential election in November has led to a sharp rise in cryptocurrencies. This is explained by investors’ hopes for an improvement in the situation with the regulation of the coin market, a change in the leadership of the Securities and Exchange Commission, and even the possible creation of a national Bitcoin reserve. However, as the results of a fresh survey of Bitwise analysts show, the coins themselves have also become more attractive to capital managers.
What will happen to crypto in 2025
More than half of respondents to a new survey by investment fund Bitwise said they wanted to get involved with digital assets after Donald Trump’s victory. The question was asked of 430 financial advisers between November 14 and December 20, 2024.
56 percent of respondents said they were actually more likely to invest in crypto in the new year following the presidential election results, Cointelegraph reports .
Among the experts who are already allocating capital to purchase digital assets, 99 percent of respondents plan to maintain their current position or increase it. This means that only a hundredth of coin holders want to abandon interaction with this category of assets.
Also, 99 percent of respondents confirmed that their clients have become interested in digital assets over the past year, and 71 percent of respondents reported that their clients have independently purchased cryptocurrencies.
Bitwise Investment Director Matt Hogan commented on the events and the survey results.
Financial advisors are more aware of the potential of cryptocurrencies than ever before and are allocating capital to them at the same rate. These alternative assets represent a major opportunity for advisors who want to help clients integrate digital assets into their broader wealth management plan.
At the same time, analysts note that access to crypto remains one of the key barriers to entry. Still, it is not so easy to engage in such investments in the US – especially if we are talking about the allocation of serious capital. Although the launch of spot Bitcoin ETFs in January 2024 has significantly improved the situation.
Here is a remark on this matter.
Only 35 percent of financial advisors said they would purchase cryptocurrencies for their clients’ accounts.
Despite this, American institutions hold far more BTC than companies in other parts of the world. According to Ki Young Ju, the head of the CryptoQuant platform, the share of bitcoin held by U.S. institutions has reached an all-time high, with their holdings outpacing the rest of the market by 65 percent .
We are talking about famous miners, MicroStrategy, ETFs, exchanges, governments and other similar organizations.
The ratio of BTC held by US institutions to offshore institutions was 1.24 in September 2024. It is now at 1.65.
The growth of the latter is actively facilitated by the purchase of bitcoins by MicroStrategy. Still, as we have already found out earlier, in the fourth quarter of 2024 the giant accumulated 194,180 BTC. This is much more than the second place holder MARA Holdings, which acquired 13,688 coins.
Cryptocurrency Forecast for the New Year
Earlier, Bitwise experts shared a detailed forecast for the coin market situation in the new year. They agree with the version that 2025 will be the final year in this coin industry bull run.
Experts expect Bitcoin to reach around $200,000 at its peak. But if the US government approves the idea of accumulating BTC for the national reserve, then the benchmark could well jump to $500,000.
Analysts also said that there is potential for growth in the popularity of Ethereum, which turned out to be not the best investment last year even in comparison with Bitcoin.
Experts attributed the following positive factors for the further growth of crypto to the slowdown in the rate of issuance of new bitcoins due to the halving in April 2024, the acquisition of BTC by governments and large companies, a certain improvement in the economic situation, and an increase in the target level of investment in crypto for organizations from 1 to 3 percent of total capital.
Despite all the positive news, you should be extremely careful when investing in coins. This week, a Solana user lost a huge amount of coins in an attempt to make money on a new token.
First of all, he paid 1068 SOL or $208,000 to conduct the transaction to be among the first buyers of the artificial intelligence-related crypto asset “ai deborah”. He spent 500 SOL or $97,000 on the new product, which allowed him to receive 174 million tokens.
However, the crypto did not show the expected growth. As a result, after only three minutes, the trader sold the purchased coins, receiving 40 SOL or only 7.7 thousand dollars. Accordingly, the almost instantaneous loss was 1528 SOL or 298 thousand dollars.
It can be argued that Trump’s victory in the US presidential election has changed the way ordinary people perceive cryptocurrencies. Now, fewer investors will view the coin market solely as an attempt to lose their money. Either way, Bitcoin has more than earned the title of a tool for capital protection and long-term investment.
Noodlemagazine I do not even understand how I ended up here, but I assumed this publish used to be great