CryptoCurrency
3 Big Changes That Could Be Coming For Cryptocurrency in 2025
2024 has already been a watershed year for the crypto industry, thanks to the launch of the new spot Bitcoin (CRYPTO: BTC) ETFs in January. For the first time ever, both individual and institutional investors have a quick, easy, and regulator-approved way to get direct exposure to Bitcoin without entering the cryptocurrency market through a crypto-trading brokerage.
But there could be even bigger changes ahead in 2025. Many, of course, will be the result of the 2024 presidential election, which has seen crypto introduced as a political campaign issue for the first time ever. Here are three big changes on the horizon, ranked from most likely to least likely to occur.
More crypto ETFs
The new spot Bitcoin ETFs have surpassed all expectations, bringing in more than $30 billion of investor capital. Yes, there was a brief rough patch in August, when it looked like investor inflows would dry up. But inflows are now back on a bullish pace, and these ETFs are being accepted by everyone from the smallest retail investor to the biggest billionaire hedge fund manager.
Thus, the introduction of more crypto ETFs in 2025 is almost a no-brainer. July saw the launch of new spot Ethereum (CRYPTO: ETH) ETFs, and the current expectation is that a handful of other large market-cap cryptocurrencies could be next. The most likely prospects include Solana and XRP, both of which rank among the top 10 largest cryptocurrencies.
A change in how crypto is regulated
Currently, the United States lacks a comprehensive regulatory framework for crypto, but that could be changing in 2025. Both Republicans and Democrats agree that such a framework is needed, and political momentum seems to be building for an overhaul next year.
Right now, the system for regulating crypto is unclear and, at times, unfair. This is a point that cryptocurrency exchange Coinbase Global (NASDAQ: COIN) has argued over and over again, as it has been pulled into regulatory battles with the SEC. Keep in mind: The current system for regulating crypto is based on a 1946 Supreme Court case that was originally designed to settle a dispute over Florida citrus groves. It’s getting harder and harder to see how these ancient rules apply to modern business issues.
Thus, 2025 could see the introduction of new legislation that clearly spells out how crypto should be regulated, as well as who should be regulating it. Right now, the SEC is the primary regulator, but the current thinking among pro-crypto advocates is that the Commodity Futures Trading Commission (CFTC) should be in charge. At the very least, look for the replacement of SEC head Gary Gensler in 2025 with someone with a more pro-crypto attitude.
Bitcoin as a national strategic imperative
Bitcoin could become a new strategic imperative for the U.S. government in 2025. Already, there are calls for greater government support for the Bitcoin mining industry, as well as suggestions that the U.S. might be pulled into a Bitcoin “arms race” with the likes of China and Russia.
Some politicians have even suggested that Bitcoin could become part of a solution to the $35 trillion national debt problem. The logic here is very simple: As long as Bitcoin can increase in price faster than the national debt can grow in size, there might be a chance to pay off all this debt one day. Granted, it’s going to be tough sledding, given that the U.S. debt is growing by $1 trillion every 100 days. By way of comparison, that’s equivalent to the total market cap of Bitcoin right now.
As part of a potential solution, U.S. Senator Cynthia Lummis (R-Wyoming) has already introduced legislation for a strategic Bitcoin reserve that is based on the idea of buying 1 million BTC over a period of several years. Over time, part of that reserve could theoretically be used to pay down debt.
Granted, the chances of any of this happening are directly tied to the electoral success of Donald Trump, who claims to be the first pro-Bitcoin president in history. He has already said that he wants to make America the “crypto capital of the planet.” For some people, this might sound terrifying. But for crypto investors, it could be a dream come true.
How to profit from changes to crypto
The big question facing investors in 2025 is how to position a portfolio to take advantage of these potential changes. The simplest solution, of course, is to load up on Bitcoin. Much of the political and regulatory focus seems to be on Bitcoin, which still accounts for more than one-half of the market cap of the entire crypto market. So any change to crypto is going to have an effect, first and foremost, on Bitcoin.
The real-world effect of any new crypto legislation is harder to predict. A clue here might come from other nations attempting to enact new crypto legislation. For example, the European Union’s Markets in Crypto-Assets (MiCA) regulation will go into full effect in December. This will establish a comprehensive legal framework for the issuance, investment, and trading of crypto assets across the EU.
For now, keep an eye on the 2024 presidential election. The outcome there could have a huge effect on the crypto market for years to come. If there’s a big post-election rally, you can be confident that big changes will be coming for crypto in 2025.
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3 Big Changes That Could Be Coming For Cryptocurrency in 2025 was originally published by The Motley Fool
Sales of existing homes fell in September as house hunters remained on the fence about buying a home despite mortgage rates easing during the month.
Existing home sales slipped 1.0% from August’s tally to a seasonally adjusted annual rate of 3.84 million, the National Association of Realtors said Wednesday. That marked the lowest rate since October 2010. Economists polled by Bloomberg expected a pace of 3.88 million in September.
On a yearly basis, sales of previously owned homes were 3.5% lower in September. The median home price rose 3.0% from last September to $404,500, marking the 15th consecutive month of annual price increases.
“Home sales have been essentially stuck at around a 4 million-unit pace for the past 12 months,” NAR chief economist Lawrence Yun said in a press release.
There have been significant challenges that have weighed on sales activity, including a lack of inventory, escalating prices, and elevated mortgage rates. Last month, however, those factors turned around.
The Federal Reserve cut its benchmark rate by half a percentage point in September. While the central bank doesn’t set mortgage rates, its actions influence their direction of movement.
Mortgage rates hit the lowest level since February 2023 ahead of the Fed decision to ease, while listing inventory picked up.
But overall, that hasn’t been enough to entice buyers.
“Some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election,” Yun said.
Tesla (TSLA) reported mixed third quarter results after the bell on Wednesday, but the stock jumped in after-hours trading as investors cheered the earnings beat, higher gross margins, and news that Tesla’s cheaper EV is on track for production next year.
For the quarter, Tesla reported revenue of $25.18 billion vs. $25.4 billion per Bloomberg consensus, higher than the $25.05 billion it reported in Q2 and also topping the $23.40 billion Tesla reported a year ago. Tesla posted adjusted EPS of $0.72 vs $0.60 expected, on adjusted net income of $2.5 billion and free cash flow of $2.9 billion.
The closely watched gross margin figure came in at 19.8%, much higher than the 16.8% expected.
Tesla shares were up nearly 8% in after hours trade.
“We delivered strong results in Q3 with growth in vehicle deliveries both sequentially and year-on-year, resulting in record third-quarter volumes,” the company said in its earnings deck. “Preparations remain underway for our offering of new vehicles — including more affordable models — which we will begin launching in the first half of 2025.”
Earlier this month, Tesla (TSLA) announced third quarter deliveries that slightly missed expectations, sending the stock lower.
Tesla said it delivered 462,890 vehicles in Q3, up 6.4% quarter over quarter, to mark the first quarter of delivery growth this year. The numbers also came in ahead of the 435,059 EVs the company delivered in the year-ago period. But Wall Street had expected Tesla to deliver closer to 463,897, according to Bloomberg.
“Refreshed Model 3 ramp continued successfully in Q3 with higher total production and lower cost of goods sold quarter-over-quarter. Cybertruck production increased sequentially and achieved a positive gross margin for the first time,” Tesla said in its report.
Tesla said it expects vehicle deliveries to achieve “slight growth” in 2024.
Ahead of Tesla’s Q3 disclosure, shares were down approximately 11% since Tesla revealed its robotaxi, dubbed the Cybercab, at its showy “We, Robot” event from the Warner Bros. studio lot in Burbank, Calif., on Oct. 10.
The debut and release of a cheaper EV is what many analysts and industry watchers believe will spur the next leg higher of EV sales, as even CEO Elon Musk has said before. During its Q2 report, Tesla and Musk said the company remains on track for the production of new vehicles, likely including a cheaper EV, in the first half of next year.
Investors and analysts were left wanting more details from Tesla’s “We, Robot” event on the Cybercab itself and detailed testing plans, along with questions about the development of Tesla’s sub-$30,000 EV, dubbed the Model 2.
Transak disclosed a data breach affecting over 92,000 users after a phishing attack compromised an employee’s laptop.
CryptoCurrency
The Dow plummets more than 600 points and is on track for its worst day in more than a month
The Dow Jones Industrial Average and other major indexes suffered a steep decline Wednesday afternoon as the yield on the benchmark 10-year U.S. Treasury note continued its upward climb, reaching 4.23%—a level not seen since July.
In the afternoon, the Dow dropped 631 points, or 1.4%, heading for its worst day in over a month. Meanwhile, the tech-heavy Nasdaq and the S&P 500 declined by 2.2% and 1.4%, respectively. However, there was some relief for investors as oil prices eased, with West Texas Intermediate (WTI) futures trading around $70.65 per barrel.
The Federal Reserve’s Beige Book, released in the afternoon, reported that economic activity remained largely unchanged across the 12 Federal Reserve Districts, with the Southeast significantly impacted by a harsh storm season.
On Wednesday, all eyes are on Tesla (TSLA) as the company prepares to release its latest earnings report. Analysts expect earnings per share to be 60 cents, down from 66 cents a year ago but an improvement from 52 cents in the previous quarter, according to FactSet estimates. Revenue is projected to hit $25.4 billion, compared to $23.3 billion in the third quarter of 2023 and $25.5 billion in the preceding quarter.
Apart from Tesla, investors are closely monitoring earnings reports from other major corporations, including AT&T (T), Boeing (BA), and Coca-Cola (KO).
McDonald’s stock plunges over 5%
McDonald’s (MCD) shares took a sharp hit, falling over 5% after the Centers for Disease Control and Prevention (CDC) linked the chain’s Quarter Pounder burgers to an E. coli outbreak. The outbreak has led to 10 hospitalizations and one death, driving a significant decline in McDonald’s stock during the afternoon trading session.
As of now, 49 cases have been reported across 10 states between Sept. 27 and Oct. 11, with a majority of illnesses occurring in Colorado, Nebraska, Utah, and Wyoming. The CDC noted that most of those affected had eaten a Quarter Pounder. Investigators are working swiftly to identify the contaminated ingredient.
Spirit Airlines stock soars 30%
After a failed attempt at merging with JetBlue (JBLU-0.80%), ultra-low-cost carrier Spirit Airlines (SAVE+28.01%) is reportedly turning back to a familiar partner. The Wall Street Journal (NWSA-0.34%), citing people familiar with the matter, reports that Spirit and Frontier Airlines (ULCC+3.05%) are in early talks over a potential merger. The news sent Spirit’s stock soaring nearly 30% on Wednesday.
–Francisco Velasquez and Rocio Fabbro contributed to the article
The semi-autonomous region of Tanzania is taking advantage of a sandbox regulatory framework adopted in July.
Bitcoin’s correction ignited selling in altcoins, which are slipping below critical support levels.
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