Source: TradingView<\/em><\/p>\n Crypto markets are at an inflection point.<\/p>\n After surging past $100,000, bitcoin (BTC)<\/strong> has stalled\u00a0out.<\/p>\n Meanwhile, many smaller cryptos have handed back their post-election gains.<\/p>\n Yet, for the first time in crypto\u2019s wild history, we\u2019re about to get what everyone\u2019s been begging for: government support.<\/strong><\/p>\n My research suggests this is the tailwind that carries crypto prices the next leg\u00a0higher.<\/strong><\/p>\n It even has the potential to break the four-year cycle.<\/a><\/p>\n The positive regulatory changes we\u2019ve seen over the past month are almost too many to\u00a0list:<\/p>\n Trump signed an executive order laying the groundwork for a pro-crypto regulatory environment. It ended Operation Choke Point 2.0 and secured crypto companies\u2019 access to\u00a0banking.The SEC announced a \u201ctask force\u201d to draw up new rules giving clarity around the all-important question of which tokens are securities, and which are commodities.The SEC also scrapped SAB 121, an obscure rule that made it virtually impossible for banks to custody crypto for\u00a0clients.Crypto\u2019s \u201cother\u201d main regulator, the Commodity Futures Trading Commission (CFTC), will be headed by crypto advocate Brian Quintenz.Congress is likely to pass a stablecoin bill this\u00a0year.Trump\u2019s crypto czar, David Sacks, said the administration wants to make America the \u201ccrypto capital of the\u00a0planet.\u201dA Texas judge overturned sanctions against privacy protocol Tornado Cash, signaling a HUGE shift toward more innovation-friendly regulations.<\/p>\n I could fill the next two pages with the positive regulatory shifts we\u2019ve seen over the past\u00a0month.<\/p>\n The largest pools of money in the world can finally come marching into\u00a0crypto.<\/p>\n Case in\u00a0point:<\/p>\n When asked if Bank of America would enter the crypto business last month, CEO Brian Moynihan said, \u201cIf the rules come in and make it a real thing that you can actually do business with, you will find the banking system will come in\u00a0hard.\u201d<\/p>\n Wall Street can finally invest. Entrepreneurs can finally build. We, as investors, will capitalize on this massive shift by continuing to own the best crypto businesses.<\/p>\n Most investors don\u2019t understand how damaging the regulatory onslaught has been. Now, they\u2019re underestimating how important these changes are for crypto\u2019s\u00a0future.<\/p>\n The most powerful entity in the world, the US government, is shifting from anti-crypto to pro-crypto. Investors are asleep at the\u00a0wheel.<\/p>\n For four years, each time we talked about crypto regulation, it was bad. \u201cOh great, another three-letter agency suing a protocol.\u201d Now, it\u2019s the opposite.<\/p>\n The biggest catalyst in crypto history is coming just as sentiment is at multi-year lows.<\/p>\n Peak memecoin <\/a>is just about over. What comes next is the flourishing of crypto innovation in\u00a0America.<\/p>\n The regulatory gates are finally opening. It won\u2019t be long before Wall Street\u2019s titans step\u00a0through.<\/p>\n BlackRock\u2019s bitcoin ETF\u200a\u2014\u200athe iShares Bitcoin Trust ETF (IBIT)<\/strong>\u200a\u2014\u200avacuumed up $40 billion since launching a year\u00a0ago.<\/p>\n Smaller cryptos<\/a> don\u2019t have these flows behind them. They\u2019re running on fumes. It\u2019s mostly retail investors buying a few hundred dollars at a\u00a0time.<\/p>\n The big crypto funds\u200a\u2014\u200awhich used to drive the market\u200a\u2014\u200ahave been unwilling or unable to raise money for the past few years due to regulatory headwinds. That\u2019s meant few bidders for smaller cryptos, even ones with great fundamentals.<\/p>\n With regulatory clarity on the horizon, that\u2019s now shifting.<\/p>\n I\u2019m hearing dozens of funds are actively raising money. Their targeting closes this quarter, which means by early summer, we could see a flood of fresh capital hitting the\u00a0market.<\/strong><\/p>\n And I mean that in a good\u00a0way.<\/p>\n Bitcoin has been leading this market since crypto prices bottomed in late\u00a02022.<\/p>\n By this point in the four-year cycle<\/a>, flows would have started coming into smaller tokens. This time around, they\u2019re still ahead of\u00a0us.<\/p>\n In the normal four-year cycle, we\u2019d be gearing up for a pullback in 2026. Washington\u2019s crypto U-turn prolongs this\u00a0cycle.<\/p>\n The ETFs brought tens of billions of new investor capital into\u00a0crypto.<\/p>\n The change in Washington, DC, will bring trillions.<\/p>\n Our research suggests we\u2019re earlier in the cycle than the calendar would indicate.<\/strong><\/p>\n Bitcoin could go as high as $250,000 in\u00a02025<\/a>.<\/p>\n Most investors are still looking in the rearview mirror, traumatized by years of regulatory whack-a-mole.<\/p>\n They don\u2019t see what\u2019s right in front of us: America is about to become the world\u2019s crypto innovation hub.<\/strong><\/p>\n I wouldn\u2019t touch 99% of cryptos\u2026 But the other 1% have the potential to change the\u00a0world.<\/p>\n I just did a deep-dive and found three cryptos solving real-world problems<\/strong><\/a> (and making money) in an innovative way.<\/p>\n One of them is disrupting Google. Second one built an Airbnb for AI chips. And the third does business with big brands like Disney, Netflix, HBO, Apple, Nike,\u00a0etc.<\/p>\n Click here to read about\u00a0them<\/strong><\/a>.<\/p>\n For more insights, subscribe to my investing letter The\u00a0Jolt\u26a1<\/em><\/a>.<\/em><\/p>\n I publish fresh research on stocks and crypto every Monday and\u00a0Friday.<\/p>\n Click here to learn\u00a0more<\/a>.<\/p>\n \u2014 Stephen McBride, Chief Analyst at <\/em>RiskHedge<\/em><\/a><\/p>\n The defining moment for crypto is here<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" 2025 is when everything changes Source: TradingView Crypto markets are at an inflection point. After surging past $100,000, bitcoin (BTC) has stalled\u00a0out. Meanwhile, many smaller cryptos have handed back their post-election gains. Yet, for the first time in crypto\u2019s wild history, we\u2019re about to get what everyone\u2019s been begging for: government support. My research suggests […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-50363","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/50363"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=50363"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/50363\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Washington\u2019s U-turn takes crypto from de facto illegal to being a national priority.<\/h3>\n
Regulatory clarity is the green light for Wall\u00a0Street.<\/h3>\n
\u201cFlows\u201d are the reason bitcoin is still leading this bull\u00a0market.<\/h3>\n
I also think there\u2019s a chance regulatory clarity breaks the four-year cycle.<\/h3>\n
These early-stage crypto projects will flourish in the new\u00a0regime.<\/h3>\n