Bitcoin, the world’s largest cryptocurrency, has gained 120% in 2024, with a market capitalization of $1.8 trillion. Its upcoming administration change brings speculation about potential regulatory changes and support from President-elect Donald Trump.
The Securities and Exchange Commission (SEC), led by outgoing Chair Gary Gensler, has historically been hostile towards the industry. However, Trump’s nomination of Paul Atkins to replace Gensler suggests a shift in policy. The incoming President has expressed interest in establishing a strategic Bitcoin reserve, which could involve buying the cryptocurrency on the open market.
The US government already holds around $18.6 billion worth of Bitcoin, and this could be a starting point for such an initiative. However, the complexity of implementing such a plan may require Congressional support.
Bitcoin faces challenges as a medium of exchange, with only 7,928 merchants accepting it worldwide. Its value is supported by investors who view it as a store of value similar to gold.
Cathie Wood’s Ark Investment Management predicts a potential price of $1.5 million per Bitcoin by 2030, citing factors like recognition as digital gold and institutional adoption.
Despite the uncertainty surrounding SEC regulations, the establishment of a strategic reserve could drive up Bitcoin’s value. However, buying some Bitcoin before Jan. 20 is not a bad idea, but it’s essential to diversify your investments and avoid betting the farm.
Source: https://www.fool.com/investing/2025/01/14/should-you-buy-bitcoin-before-jan-20