Crypto markets are at an inflection point.
After surging past $100,000, bitcoin (BTC) has stalled out.
Meanwhile, many smaller cryptos have handed back their post-election gains.
Yet, for the first time in crypto’s wild history, we’re about to get what everyone’s been begging for: government support.
My research suggests this is the tailwind that carries crypto prices the next leg higher.
It even has the potential to break the four-year cycle.
Washington’s U-turn takes crypto from de facto illegal to being a national priority.
The positive regulatory changes we’ve seen over the past month are almost too many to list:
- Trump signed an executive order laying the groundwork for a pro-crypto regulatory environment. It ended Operation Choke Point 2.0 and secured crypto companies’ access to banking.
- The SEC announced a “task force” to draw up new rules giving clarity around the all-important question of which tokens are securities, and which are commodities.
- The SEC also scrapped SAB 121, an obscure rule that made it virtually impossible for banks to custody crypto for clients.
- Crypto’s “other” main regulator, the Commodity Futures Trading Commission (CFTC), will be headed by crypto advocate Brian Quintenz.
- Congress is likely to pass a stablecoin bill this year.
- Trump’s crypto czar, David Sacks, said the administration wants to make America the “crypto capital of the planet.”
- A Texas judge overturned sanctions against privacy protocol Tornado Cash, signaling a HUGE shift toward more innovation-friendly regulations.
I could fill the next two pages with the positive regulatory shifts we’ve seen over the past month.
Regulatory clarity is the green light for Wall Street.
The largest pools of money in the world can finally come marching into crypto.
Case in point:
When asked if Bank of America would enter the crypto business last month, CEO Brian Moynihan said, “If the rules come in and make it a real thing that you can actually do business with, you will find the banking system will come in hard.”
Wall Street can finally invest. Entrepreneurs can finally build. We, as investors, will capitalize on this massive shift by continuing to own the best crypto businesses.
Most investors don’t understand how damaging the regulatory onslaught has been. Now, they’re underestimating how important these changes are for crypto’s future.
The most powerful entity in the world, the US government, is shifting from anti-crypto to pro-crypto. Investors are asleep at the wheel.
For four years, each time we talked about crypto regulation, it was bad. “Oh great, another three-letter agency suing a protocol.” Now, it’s the opposite.
The biggest catalyst in crypto history is coming just as sentiment is at multi-year lows.
Peak memecoin is just about over. What comes next is the flourishing of crypto innovation in America.
The regulatory gates are finally opening. It won’t be long before Wall Street’s titans step through.
“Flows” are the reason bitcoin is still leading this bull market.
BlackRock’s bitcoin ETF — the iShares Bitcoin Trust ETF (IBIT) — vacuumed up $40 billion since launching a year ago.
Smaller cryptos don’t have these flows behind them. They’re running on fumes. It’s mostly retail investors buying a few hundred dollars at a time.
The big crypto funds — which used to drive the market — have been unwilling or unable to raise money for the past few years due to regulatory headwinds. That’s meant few bidders for smaller cryptos, even ones with great fundamentals.
With regulatory clarity on the horizon, that’s now shifting.
I’m hearing dozens of funds are actively raising money. Their targeting closes this quarter, which means by early summer, we could see a flood of fresh capital hitting the market.
I also think there’s a chance regulatory clarity breaks the four-year cycle.
And I mean that in a good way.
Bitcoin has been leading this market since crypto prices bottomed in late 2022.
By this point in the four-year cycle, flows would have started coming into smaller tokens. This time around, they’re still ahead of us.
In the normal four-year cycle, we’d be gearing up for a pullback in 2026. Washington’s crypto U-turn prolongs this cycle.
The ETFs brought tens of billions of new investor capital into crypto.
The change in Washington, DC, will bring trillions.
Our research suggests we’re earlier in the cycle than the calendar would indicate.
Bitcoin could go as high as $250,000 in 2025.
Most investors are still looking in the rearview mirror, traumatized by years of regulatory whack-a-mole.
They don’t see what’s right in front of us: America is about to become the world’s crypto innovation hub.
These early-stage crypto projects will flourish in the new regime.
I wouldn’t touch 99% of cryptos… But the other 1% have the potential to change the world.
I just did a deep-dive and found three cryptos solving real-world problems (and making money) in an innovative way.
One of them is disrupting Google. Second one built an Airbnb for AI chips. And the third does business with big brands like Disney, Netflix, HBO, Apple, Nike, etc.
