Is Bitcoin a smart buy after a volatile Crypto Week?
In an unprecedented move, US lawmakers set aside a week for cryptocurrency, advancing a trio of landmark bills aimed at regulating stablecoins, clarifying digital asset oversight, and blocking a central bank digital currency.
Dubbed Crypto Week, it saw market turbulence with institutional investors viewing regulatory clarity with optimism, before locking in profits after the rally.
Longer term, however, the legislation could reduce volatility and increase interest in investing in cryptocurrencies, including in Ireland.
While overall ownership is modest here, interest continues to rise.
Crypto Week
The US House of Representatives set aside an entire legislative week for focus on cryptocurrency policy.
On the House agenda were three major bills related to digital assets, including:
GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act)
The GENIUS Act establishes a federal regulatory framework for stablecoins, aiming to ensure their safety, transparency, and integration into the broader financial system.
CLARITY Act
The Clarity Act seeks to define the regulatory roles of the Security and Exchange Commission and the Commodity Futures Trading Commission concerning digital assets. It essentially aims to provide clear guidelines on which agency oversees various aspects of the crypto market.
Anti-CBDC Surveillance State Act
This legislation proposes to prohibit the Federal Reserve from issuing a central bank digital currency.
The Genius Act passed both houses and will be signed into law by President Donald Trump, while the Clarity Act and the Anti-CBDC Surveillance State Act will require Senate approval before moving to Trump's desk.
The concentrated legislative push has been hailed by crypto backers as a turning point for regulatory certainty, boosting consumer protection and institutional confidence.
Critics worry the legislation doesn't fully address system risk or how cryptocurrency will interact with the broader banking system.
Trump and Crypto Week
The US president has championed all three bills, shaping Crypto Week financially and politically.
The backing of the self-styled 'crypto president' has pushed prices to fresh highs and driven US policy on a more crypto-friendly trajectory.
Trump's own financial interests are tied up in cryptocurrency. Ahead of his inauguration, he launched the $TRUMP meme coin.
His crypto ventures have also provoked scrutiny and complicated bipartisan backing, including delays to the bills he endorsed.
Irish investment in cryptocurrency
Crypto enthusiasm is highest among younger Irish adults. A survey carried out by Amarach on behalf of Blockchain Ireland showed more than 10% of Irish adults are dabbling in cryptocurrencies.
Nick Charalambous, Managing Director of Alpha Wealth, said younger males are more likely to own the digital assets.
"This puts Ireland roughly in line with global averages, where global cryptocurrency ownership rates at an average of 7-8% of the population, with over 560 million cryptocurrencies users worldwide in 2024."
What should people consider before investing in cryptocurrency?
Mr Charalambous said, before investing in Bitcoin or other cryptocurrencies (or indeed any investment), investors should consider several key factors:
Diversification: Bitcoin should form only a small portion of a balanced investment portfolio - typically no more than 5-10% of total investments.
Volatility and risk: Cryptocurrency values can fluctuate dramatically, making it unsuitable for short-term needs or those who cannot afford losses. Only invest what you can afford to lose entirely.
Regulatory environment: Ireland follows EU regulations, with new rules coming into effect that will provide clearer consumer protections but may also impact how crypto services operate. "However, there are so many scams we have to be really vigilant when investing in this asset class," he said.
Tax implications: Most Cryptocurrencies are subject to capital gains tax (currently 33%) which is due on any profit you make over €1,270. You'll need to file a tax return annually regardless of profit or loss.
Is now a good time to invest?
There's no universally good or bad time to invest in cryptocurrencies; "Timing the market consistently is nearly impossible", Mr Charalambous said.
There are considerations for current conditions:
Current market position: Bitcoin is currently trading around approximately €100,000 having seen significant gains this year. Bitcoin price prediction for July 2025 suggests an upside target of over €110,000, supported by ETF inflows and strong institutional demand.
Risk tolerance: With Bitcoin's extreme volatility, ensure you can stomach potential 50-80% drops without affecting your financial security.
Personal circumstances first: Only invest if you have adequate emergency funds, no high-interest debt, and have maximised your pension contributions first.
Portfolio balance: Keep crypto allocation small (typically 5-10% maximum) within a diversified investment strategy.
Long-term perspective: Bitcoin historically rewards patient, long-term holders more than short-term traders.
Cryptocurrencies remain a high-risk, high-reward asset that should complement, not replace, traditional investments," Mr Charalambous said.
"One way to consider investing in this is price-cost averaging rather than trying to time the market, consider regular small purchases over time to smooth out volatility."
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