Optimism Surrounds Cryptocurrency... 'Altcoin ETFs' Like Ripple and Solana Expected

Cryptocurrency-Friendly Trump Second Term

Growth Expected Amid Regulatory Easing

Anticipation for This Year's 'Four-Year Cycle Bull Market'

Increased Volatility Raises Investment Risks

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Optimism is gaining momentum with the expectation that the U.S. under Trump's second term will pursue pro-cryptocurrency policies. While the possibility of a continued cryptocurrency bull market this year has increased, caution is needed as volatility may also intensify.

Reuters recently reported, "President-elect Trump is expected to announce 25 executive orders, including cryptocurrency policies, on his first day in office," and "positive prospects are anticipated in sectors like cryptocurrency." Additionally, with pro-cryptocurrency figures positioned not only in the U.S. administration but also in Congress, there is a view that the cryptocurrency market will grow in a more favorable regulatory environment.

In the U.S., there is anticipation that multiple altcoin spot ETFs could be launched. Forbes reported, "This year, it is expected that Ethereum spot ETFs will integrate staking features (providing deposit rewards). Altcoin ETFs like Solana could also emerge." Finance Magnates also stated, "Trump's nomination of pro-cryptocurrency Paul Atkins as SEC chairman increases the likelihood of altcoin ETFs like Ripple, Litecoin, Hedera, and Solana being launched."

There are also analyses predicting a strong performance for DeFi (decentralized finance) this year. U.S. cryptocurrency exchange Coinbase recently stated in a research report, "The U.S. is set to form the most cryptocurrency-friendly Congress in history," and "the previously unclear and enforcement-focused cryptocurrency regulations could soon become favorable winds. If the regulatory environment changes, institutional investors' participation in DeFi could become easier."

Major 'Layer 1 cryptocurrencies' with their own blockchain networks, such as Sui, Ton, and Solana, are also expected to show stronger performance. Global asset management firm 21Shares stated in a research report, "Sui, Ton, and Solana, classified as alternatives to Ethereum, are likely to continue attracting new users next year," and "recently, Solana has reached an all-time high in user-deposited assets and is expected to continue eroding Ethereum's market share."

There is also growing anticipation that a 'four-year cycle bull market' could arrive this year. Cryptocurrency strategist Michael van de Poppe advised, "In the upcoming bull market, volatility and investment risks could increase," and "investors are recommended to shift to relatively safer or undervalued coins like Ethereum if portfolio returns rise." The scale and duration of the bull market are expected to be significantly influenced by the U.S. Federal Reserve's monetary policy and Trump's cryptocurrency policies.

Recently, while Bitcoin and some altcoins have led the rise, there is also analysis that the overall upward trend could continue this year. Cryptocurrency analyst Benjamin Cowen stated, "Indicators showing the relative value of altcoins compared to Bitcoin are expected to rebound and rise this year," but also warned, "Altcoins, including Ethereum, could experience a correction."

Kang Min-seung, Bloomingbit Reporter minriver@bloomingbit.io