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Donald Trump’s imminent return to the White House and China’s sweeping economic stimulus is driving renewed global interest in cryptocurrency.
According to Australian crypto exchange Wayex, the global cryptocurrency industry is now valued at over A$5.8 trillion.
The US is set to introduce new measures under the new Trump administration that paves the way for an official Bitcoin (BTC) reserve.
This includes the BITCOIN Act Proposal which aims to accumulate one million BTC over five years, valued at more than A$18 billion and is strongly supported by Republicans.
Trump has already proposed the creation of a Strategic Bitcoin Reserve within the Federal Reserve.
He had also pledged to remove SEC Chairman Gary Gensler until, on November 21, 2024, Gensler decided to resign.
“This level of commitment from the world’s largest economy is a clear signal that Bitcoin is becoming a legitimate, strategic asset,” Luke Lombe, Director of Wayex, claimed.
“Such moves will elevate Bitcoin’s status globally, and that of the entire blockchain industry. Australia cannot afford to ignore these developments.”
GLOBAL INTEREST
Wayex also pointed to global developments as other countries look at Bitcoin reserves:
- Brazil: The Sovereign Strategic Bitcoin Reserve (RESBit) bill proposes allocating five per cent of national reserves to Bitcoin;
- Russia: lawmakers are advocating for a strategic reserve to reduce reliance on fiat currencies like the US dollar and Chinese yuan;
- Switzerland: Citizens have initiated a proposal to mandate the Swiss National Bank to include Bitcoin in its reserves;
- South Africa, Poland, Germany, Japan, Hong Kong, and Venezuela are also exploring Bitcoin reserves.
Meanwhile, China’s central bank is preparing a massive economic stimulus to revive its slowing economy with anticipated interest rate cuts and infrastructure funding. Analysts predict this will result in significant capital outflows, much of which could flow into Bitcoin.
Crypto analysts, including Arthur Hayes of BitMex, believe China’s “stimulus bazooka” combined with U.S. policy changes will drive Bitcoin and crypto into a new bull market.
“Having institutions like BlackRock and Fidelity actively championing Bitcoin is a turning point for the industry,” said Lombe.
“Their endorsement brings unparalleled legitimacy and access, particularly for conservative investors who have hesitated to enter the market.”
AUSTRALIAN INTEREST
Family offices and institutional investors globally are increasing their crypto allocations, and Australians are following suit, according to Wayex.
- According to Coinbase Institutional, adding crypto to a portfolio significantly improves returns. For example, a portfolio with 5% crypto allocation delivered 67% returns, compared to 33.3% for traditional 60/40 portfolios.
“It’s no longer about if Australians should invest in crypto but how much it should represent in their portfolio,” said Lombe.
“This decision should reflect individual risk tolerance. Seeking proper financial advice or conducting thorough research is essential before investing.”
