Tax Planning? Dial Crypto 🤙🏽
Crypto anticipates lesser regulatory ambiguity. Trump is proposing zero capital gains tax on crypto. Santa Claus Rally effect rubbing off on crypto? Sen Warren to be top Democrat on Banking Committee.
Hello, y'all. Welcome to your Thursday’s crypto dose. Today we explore what’s driving crypto’s bull run even before Trump’s policy moves.
Hello, y'all. FOMO about missing out on Coldplay live? Play Muzify quiz to score the concert ticket👇
Are you out of the Trump driven crypto/Bitcoin hangover yet?
Not already? We get it.
Because, neither are we.
Just look at the crypto market - it’s soaring.
Bitcoin just had a “normal” day at the job.
Read: Crypto's Getting Bigger than France? 🌎
It is now breaking all-time-highs and casually smashing past $93K from a low of $67K just less than 10 days ago, as if it was no big deal.
All this before Trump even uttered a word about crypto, or the word itself, since he got re-elected.
Bitcoin's on a tear, XRP's dreaming of ETFs, DOGE's got a federal department (sort of), and even Ethereum's hitting new highs.
Read: The DOGE Rises 🐶
But here's the kicker – the president-elect is still busy picking all the issues from gender rights, immigration, education … everything but crypto as of now.
So what's driving this rally?
"The parabolic rise in Bitcoin's price this week reflects this lack of ambiguity in the US."
That’s what smart contracts platform Tezos co-founder Kathleen Breitman said at Web Summit about how the anticipation of a clearer crypto regulatory landscape is driving the bull rally.
Meaning? Markets hate uncertainty more than bad news.
And right now, we're watching uncertainty evaporate in real-time.
Gary Gensler likely stepping down
More crypto-friendly SEC expected
ETF momentum building
Clearer regulatory framework anticipated
But what’s Trump doing to enable all this?
Nothing just as yet.
In fact, as we write this, the rumour just has it that Trump is proposing a zero capital gains tax on cryptocurrencies issued by US companies.
But that’s just a rumour that just started going around.
Officially, so far, Trump's still focused on appointing bigger fish.
Sure, he’s made some pro-crypto picks.
Tapped pro-crypto players Elon Musk and Vivek Ramaswamy to lead D.O.G.E.
Read: The DOGE Rises 🐶
Likely picked billionaire hedge fund manager and Bitcoin believer Scott Bessent for Treasury Secretary’s chair.
Barring that, he’s got Howard Lutnick, Cantor Fitzgerald CEO, co-chairing his transition team to fill about 4,000 positions.
What about crypto positions? Negative. They're on the back burner.
Yet, the market's not waiting
XRP up 23% this week (ETF hopes soaring)
Global spot volumes 13x higher than last week
Money rotating from SOL, ETH, DOGE into XRP
Traders betting on less hostile SEC
"The market is putting all its chips on the table for an XRP ETF approval and a less hostile SEC," says Pav Hundal from Swyftx.
But here's what no one's talking about – the Q4 phenomena.
What’s that?
Every Q4, we see this pattern.
Investors rushing to position themselves before the tax year ends. Add that to the post-election optimism, and you've got yourself a perfect storm.
Bitcoin has historically seen the best average returns in Q4.
And this is not unique to cryptocurrencies.
The trend checks out with the equity markets too.
S&P 500 also gave the best returns in Q4 in the last three decades.
See all the green dots above 5% in the Q4?
The last quarter has been the strongest for S&P 500 and has given a 7%+ average returns in the last three decades.
What does it predict for this Q4?
Likely that the Santa Claus Rally effect is rubbing off on the crypto assets too.
And we can only imagine what can happen if Trump’s ‘zero capital gains tax’ proposal turns reality.
Either way, one thing's clear: Markets aren't waiting for official announcements.
They're betting big on the future, one green candle at a time.
The Home for All the Music Lovers
Muzify - With close to 2 million plays, is more than just a platform.
It's a journey into the world of music.
It provides an interactive experience through quizzes and exploration tools. For artists it’s a powerful tool for artists to connect with their fans.
Through custom quizzes artists can engage their audience, receive direct feedback, and build a loyal following eagerly anticipating their next release.
The platform offers a direct line to fans, fostering a sense of connection that goes beyond mere listening.
Block That Quote
Frank Downing, ARK's research director
"…seems poised to bring much needed clarity to the regulation of digital assets.”
While the crypto market's surging on post-election optimism, something bigger might be brewing beneath the surface: a potential IPO wave.
Here's why it matters: Since Coinbase's 2021 listing, the IPO pipeline has been frozen solid.
The culprit? Regulatory uncertainty.
But ARK Invest sees this changing.
"The new Administration seems poised to bring much needed clarity to the regulation of digital assets.”
The dominoes are already falling
Circle's confidentially filed for IPO
Kraken's secured $100 million pre-IPO funding
Circle relocating to One World Trade Center
More companies eyeing public markets
What's different this time?
Two critical bills in Congress.
FIT21: Clarifies SEC vs CFTC jurisdiction
Stablecoin Act: Clear framework for stablecoins
With Republicans controlling both houses and a crypto-friendly administration incoming, these bills might finally move forward.
Cathie Wood puts it bluntly: calls the SEC a "menace to the digital assets movement" and argues that regulatory reform under Trump could "turbocharge the US economy."
The message is clear: It's not just about less regulation – it's about clearer regulation.
And that might be exactly what crypto companies need to finally ring the NYSE bell.
Senator Warren: Still Crypto's Nemesis? 🏛️
If you thought it is all going to green flags for crypto regulations henceforth, think again.
Maybe crypto celebrated unseating Senator Brown last week.
But exit one, enter another.
Enter Elizabeth Warren, crypto's most vocal critic, who's just been confirmed as the top Democrat on the Senate Banking Committee.
The same committee that oversees the SEC. Yes, that SEC.
Coinbase's Chief Legal Officer Paul Grewal's response?
"Nah. Making sure there wouldn't be a Chair Brown is worth even a Ranking Member Warren."
Bold words, but here's what's at stake
Warren's pushing strict crypto AML rules
Wants KYC for miners and validators
Controls key legislation pipeline
Influences SEC oversight
The timing is fascinating. Just as markets rally on hopes of Trump's crypto-friendly administration, Warren steps into a position where she could potentially throw sand in the regulatory gears.
Regulatory clarity might be coming, but the path there? That just got more interesting.
The Surfer 🏄
Coinbase Wallet is set to introduce a "Tap to Pay" crypto solution to compete with popular payment platforms like Cash App and Venmo. The feature aims to be available in 50 countries by the end of 2025, enhancing the payment experience for merchants worldwide.
Hut 8 reported Q3 revenue of $43.7 million, exceeding estimates by $5.5 million and nearly doubling year-ago figures. Adjusted EBITDA was $5.6 million, with GAAP earnings at $0.01 per share, significantly better than the expected loss of $0.29. Energy cost per MWh dropped 33% to $28.83 from $42.73 in the previous year.
Silk Road founder Ross Ulbricht, serving a life sentence since 2015, is hopeful that President-elect Donald Trump will commute his sentence. In a recent post, Ulbricht expressed optimism about seeing "the light of freedom" following Trump's election victory.
Mike Novogratz, CEO of Galaxy Digital, believes it's unlikely that President-Elect Trump will establish a Bitcoin strategic reserve during his term due to potential government clashes.
Metaplanet reports a $28 million gain on its Bitcoin holdings, benefiting from a recent crypto bull market. The Tokyo-based firm has more than doubled its Bitcoin acquisitions, increasing from 492.82 BTC to 1,018.17 BTC since late September.
If you want to make a splash with us, check out partnership opportunities 🤟
Our sponsorship storefront on Passionfroot 🖖
This is The Token Dispatch find all about us here 🙌
If you like us, if you don't like us .. either ways do tell us✌️
So long. OKAY? ✋
Awesome coverage!
Excellent breakdown!