You’ve Got to See Crypto's Unprecedented Market Dynamics
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| By Marija Matic |
Bitcoin (BTC, “A”) has achieved a remarkable breakthrough.
After overtaking silver in terms of market cap, it overtook Saudi Aramco to become the seventh largest asset.
At the current moment, Saudi Aramco is valued at $1.792 trillion while Bitcoin is at $1.819 trillion.
This is a testament to the cryptocurrency's growing legitimacy and investor confidence.
And there may be more on the way.
The American Crypto Renaissance
A potential game-changer is emerging in the form of proposed tax reforms by the incoming Trump administration.
For crypto in particular, there is a rumor that the capital gains tax will be waived for cryptos issued by companies registered in the U.S.
If that happens, it could trigger significant market restructuring by ...
- Driving capital inflows into U.S.-based cryptocurrencies
- Encouraging foreign crypto companies to relocate to the United States
- Creating a "patriotic premium" for American crypto projects
Notable U.S. cryptocurrencies are already showing extraordinary momentum in weekly gains in response.
For example, Ripple (XRP, “B”) has soared 91% …
Stellar (XLM, “B”) has risen a solid 113 % …
And Hedera (HBAR, Not Yet Rated) is up 152%!
But the real story behind gains like this lies in the broader market's unprecedented volatility. Market rotations are happening with lightning speed, creating a landscape of rapid opportunities and dramatic transformations.
And at the heart of this market chaos is an unsuspecting crypto.
Peanut the Squirrel (PNUT, Not Yet Rated) is a memecoin that embodies the intersection of internet culture, political commentary and financial innovation.
Inspired by a real-life squirrel controversially euthanized by government agencies, Pnut has broken meme containment to become a symbolic protest against bureaucratic overreach.
Elon Musk's endorsement has been instrumental in PNUT'S meteoric rise. Last week, he posted a provocative tweet in support of PNUT. In response, the community rose up and drove the token's valuation higher.
In just the past week since I first mentioned its strength, PNUT has rocketed 314%. It has shot to the 71st position among top cryptocurrencies with a market cap exceeding $1.67 billion!
This just goes to show the kind of momentum that exists in a bull market like this.
But be warned: Memecoins are a particularly volatile type of crypto. Thanks to their lack of fundamental value, they live — and die — on hype.
If you’re interested in keeping PNUT on your watchlist, just be sure you’re OK with an elevated level of risk exposure.
Not all cryptos are so fickle, however.
While memecoins may capture headlines, your attention should be on the serious technological developments that are simultaneously reshaping the crypto ecosystem.
Like the ones coming from Mantra (OM, Not Yet Rated), a Layer-1 blockchain with a stunning 196% weekly gain. This is thanks to its recent partnership with Google Cloud, which became one of its validators of transactions.
Looking Forward
The crypto market is entering a dynamic phase of transformation. One characterized by external forces — such as potential U.S. tax reforms and Bitcoin's growing institutional legitimacy — as well as the growth of politically charged memecoins like PNUT and potential U.S. tax reforms that could reshape cryptocurrency investment landscapes.
As Bitcoin challenges traditional assets and memecoins capture generational imagination, the crypto space remains in a state of exhilarating flux.
Investors and observers alike should prepare for continued volatility, unexpected innovations and a market that defies conventional wisdom.
The next phase of crypto growth promises to be unpredictable, exciting and transformative.
In short, it will be a true reflection of our rapidly changing digital world.
I hope you’ll be ready for it.
Best,
Marija Matić
