A brutal reorganization is coming to the crypto market

Bitcoin and its “friends” have been doing very well since the election of Donald Trump, but not only the largest cryptocurrency, but also the crypto market has grown enormously since the US presidential election in early November. In a single month

• the price of bitcoin increased by almost half (by 48 percent according to early Friday afternoon data), and is currently traded at over $98,000;
• the price of the second largest crypto, ether, went up by almost a third (30 percent), its price is already above $3,300;
• but the entire crypto market is also cracking, since its capitalization has increased by more than 1,000 billion to 3,300 billion since the beginning of November.

All three data above represents a historical peak. Many people expected this months ago, and for years they have been saying that the $100,000 bitcoin price will be reached, the balloon will not pop.

There are several reasons for the current rally:

• perhaps one of the most obvious is Trump’s victory in the US presidential election – previously the United States has also taken steps regarding regulation, so large American companies have also arrived on the market, for example BlackRock already this week – as the president-elect spoke positively about the market several times during his campaign ;
• but several other news also strengthened the exchange rates, for example, a Chinese court recently ruled, also according to Chinese law is it legal to hold bitcoins.

“The fact that Donald Trump won is completely irrelevant for the crypto market in the long term,” he said Gábor Sulcz crypto expert at Economx’s request. According to him, the situation in the market would be similar even if Kamala Harris had won. In the case of Trump, the main question now is what effect he will have on the expected recession. “How long can the current operation continue? The Americans are facing a brutally large debt stock, which is expected to be followed by a stronger inflation,” he said, adding that all of this foreshadows a serious recession. “With the current economic conditions, that doesn’t seem inevitable.”

The rise in inflation encourages many people to invest their money in various investment instruments. The crypto market has grown nicely in recent years, but since progress has been made in regulation, as well as the entry of many recognized funds and investment companies, cryptos have quietly infiltrated the mainstream.

According to Gábor Sulcz, among the various investment instruments, “the biggest growth potential is still in crypto”, because the inflating money drives water to the mill of the crypto market. “The whole process is also a bit self-fulfilling”, since according to the crypto expert, this is why these decentralized devices were created in the past, among other things.

Musk’s enthusiasm

Returning to the Trumps – in addition to Elon Musk, who has already received a government position, “there” is also “there” for cryptocurrencies – the expert emphasized that it is absolutely necessary to separate the individual coins:

• doge is a memecoin, it has to be handled in its place – according to him, everyone handles this somehow, the “community” inflated this balloon, and that makes it valuable, because many people pay attention to it, “as, for example, in the case of Facebook before”;
• bitcoin and ethereum, on the other hand, are a different story: there is the fundamental, the operational value, plus it now has a wealth preservation function.

“With dogecoin, you turn the community’s attention into money, and if this attention goes away, then its price will fall, as soon as it comes to the fore again – for example, Musk posts something – then its price will rise again,” said Gábor Sulcz.

A major reorganization is coming to the crypto market

A significant part of the money in the entire crypto market is in these two instruments: bitcoin accounts for 59.5 percent of the nearly 3.3 trillion dollar market, and ether for 12.2 percent. Coinmarketcap according to your data. This is almost three quarters of the entire market.

Gábor Sulcz expects a very big change in this as we reach the end of the rise in exchange rates:

predicted the crypto expert. (If this were to take place at the current market capitalization, the price of bitcoin would fall by a third, but if it did not lose its current value, then huge fortunes would still have to flow into the crypto market, and at the current exchange rates, the entire market would have to triple.)

Sulcz bases this on the fact that those who made purchases in the past year – mainly in bitcoin, although almost all major cryptocurrencies are currently making serious gains – will invest part of their profits in smaller coins and riskier investments. According to him, there are plenty of exciting and currently undervalued projects that will benefit from the reorganization expected at the end of the bull market – just think of the various AI stories or decentralized physical infrastructures.