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RTÉ News
19-07-2025
- Business
- RTÉ News
Is Bitcoin a smart buy after a volatile Crypto Week?
Bitcoin hit new all-time highs of $123,000 before pulling back during a big policy week in the US for cryptocurrency. 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."
Yahoo
22-03-2025
- Business
- Yahoo
President Trump Has Been in Office for Less Than 2 Months. Here's What He Could Do for Cryptocurrency Over the Next Year.
Changes to the crypto market have been happening at warp speed in 2025. We're only two months into the second presidency of Donald Trump, and we've already seen a scaling back of the Security and Exchange Commission's crypto oversight power, the creation of a Strategic Bitcoin (CRYPTO: BTC) Reserve, and a proliferation of executive orders related to digital assets. That's just the start. There's more that could be coming during the next 12 months. Here's a brief overview of three key developments to watch and what they could mean for your crypto portfolio. Let's start with the one development that's at the top of every Bitcoin investor's mind, and that's the creation of the Strategic Bitcoin Reserve in March. As it currently stands, the U.S. will consolidate its holdings of 200,000 bitcoins into one centralized reserve. And, unlike past administrations, it plans to never sell coins. However, there's much more that the Trump White House could be doing. For example, the Trump team has left open the possibility of finding new budget-neutral strategies to buy even more Bitcoin. The big idea here is that the government won't use taxpayer funds to buy more Bitcoin. Moreover, the government won't increase the nation's debt by buying new Bitcoin. So, it will require a little creativity to get things right. Already, a number of different ideas have been proposed -- everything from revaluing gold certificates held by the Federal Reserve to using some of the cost savings created by the Department of Government Efficiency -- to open up new buying authority for the U.S. government. If that happens, of course, it would be a huge development and would almost certainly send the price of Bitcoin soaring. Under the Bitcoin Act of 2024, the government was supposed to purchase 200,000 bitcoins per year for the next five years, for a total of 1 million bitcoins. That scale of Bitcoin buying is unprecedented. Legendary Bitcoin bull Michael Saylor, the founder and executive chairman of Strategy (formerly MicroStrategy), recently upped the ante. He now wants the U.S. government to buy as much as 25% of the total circulating Bitcoin supply (roughly 5 million Bitcoins) by 2035. Next up on everyone's crypto wish list is the establishment of comprehensive regulation for the U.S. crypto industry along the lines of the new Markets in Crypto Assets (MiCA) regulatory framework for the European Union. Right now, the U.S. lacks a comprehensive regulatory framework for crypto, and that's causing a number of market deficiencies. For one, it leads to scammers, grifters, and outright criminals doing things with crypto that shouldn't be legally possible. After the collapse of Sam Bankman-Fried's FTX cryptocurrency exchange in November 2022, industry leaders were begging the government to do something -- anything -- to protect the integrity of the crypto industry. But little happened under the Biden administration. Moreover, the lack of a clear regulatory framework leads to a lot of market uncertainty. Why go to all the trouble of creating a new product or service for customers if there's a risk that the government might deem it illegal at some point in the future? This is exactly what happened to major cryptocurrency exchanges in 2023 when the SEC decided to crack down on a common crypto activity known as staking. Right now, there are several key pieces of legislation awaiting the president's signature at some point in 2025. The low-hanging fruit is the GENIUS Act of 2025, which will help to regulate the $200 billion stablecoin market. "GENIUS," as you probably guessed, is an acronym. It stands for "Guiding and Establishing National Innovation for U.S. Stablecoins." Pending congressional approval, Trump is expected to sign this into law sometime within the next two months. Why stablecoins, you might ask? Well, the Trump White House now views stablecoins as the key to continued U.S. dollar dominance. In the non-crypto world, the dollar is the global reserve currency. So, in the crypto world, the thinking goes, the dollar also should function as a global reserve currency. This logic makes sense when you consider that most stablecoins are pegged 1-to-1 to the U.S. dollar. More demand for stablecoins means more demand for U.S. dollars, so it's important to keep the U.S. stablecoin market in, well, stable condition. During the presidential campaign, Trump promised to support the Bitcoin mining industry. He said that he wanted all Bitcoins to be mined in the U.S. He also suggested that, given the energy-intensive nature of Bitcoin mining, he would be willing to invest in new energy infrastructure to make that happen. A big, splashy move for Bitcoin mining could be huge for crypto. Of course, this would need to go far beyond just offering tax incentives for Bitcoin miners to relocate to the U.S. For example, the U.S. government might launch a Bitcoin mining program of its own. This would ensure that new Bitcoin is 100% domestic. Given that the Trump White House views Bitcoin as a national strategic priority, that might not be as far-fetched as it sounds. Considering the above, the most obvious investment target for 2025 is Bitcoin. In many ways, all roads -- the new Strategic Bitcoin Reserve, new crypto regulation, and new steps to support Bitcoin mining -- lead to Bitcoin. While the White House has no official price target in mind for Bitcoin, it is not surprising that it is keeping a close eye on Bitcoin's price as a proxy for how well its crypto policies are working. That should provide some peace of mind to potential Bitcoin investors. If the price of Bitcoin remains less than $100,000, you can be sure that the brightest minds in Washington, D.C., will be working overtime trying to figure out what they can do next. Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $726,481!* Now, it's worth noting Stock Advisor's total average return is 835% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 18, 2025 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy. President Trump Has Been in Office for Less Than 2 Months. Here's What He Could Do for Cryptocurrency Over the Next Year. was originally published by The Motley Fool
