Trump Launches $15 Billion Memecoin; Top Bitcoin Analyst Sees $175K in '25
Trump finally dropped his memecoin, and why Fundstrat's Sean Farrell is predicting Bitcoin hits $175,000 in 2025
The crypto industry is descending on Washington D.C. for the black-tie Crypto Ball event (put on by the same organizers behind the Bitcoin Nashville Conference that originally raised millions for Trump last summer) to celebrate a new pro-crypto era in the Nation’s capital.
As that was happening, President-elect Trump was dropping his memecoin. The $TRUMP token skyrocketed to a total market cap of more than $7 billion in an hour. The chain it launched on, Solana also caught a big boost, up 6% as people funneled funds into the coin.
The launch garnered mixed emotions, with some pointing out that it could throw cool water on the idea of Democrats wanting anything to do with reforms. Crypto is likely set to be discussed early and often in the Trump administration now after he’s sworn in on Monday. The political optics are shaping up to be a nice short-term boost, but as Fundstrat’s Sean Farrell told us this week — crypto’s got a lot more going for it than just that.
More on that thesis below, but as crypto continues to pump, I couldn’t help but take a few minutes to vent and consider at what costs. As more suits and ties swoop in to co-opt crypto, I can’t help but lament that it’s getting less and less weird. (We used to have a crypto trading hamster, and people were happy then.) Alas, he’s dead now. Onto the price predictions…
Why Bitcoin Could Hit $175,000 in 2025
It’s not easy to be right in crypto. And yet, Sean Farrell, Fundstrat's Head of Digital Asset Strategy, has managed to hit the bullseye year after year.
Back at the beginning of 2023, when Bitcoin hovered around $22,000 Farrell boldly forecasted a climb to $44,000 — a target Bitcoin met by year’s end. In 2024, his call for $115,000 came remarkably close as Bitcoin peaked at $108,000. Now, Farrell has set his sights on 2025 with an ambitious prediction: Bitcoin will reach $175,000.
"I do think that Bitcoin gets to $175,000 this year," Farrell tells us in a prediction-filled look ahead to 2025.
Solana Due to Double in 2025?
If there was one of Sean’s price predictions that didn’t hit in 2024, it was Solana hitting $700. That didn’t pan out. But maybe he was just ahead of himself a bit — as now it even has the literal leader of the free world building on it. This year, Sean sees Solana surpassing $500 due to a handful of different reasons.
For one, Wall Street seems very interested in allocating to what has ballooned into a very serious contender to take on Ethereum. In fact, the chain has become so noteworthy it has officially won our Crypto Project of the Year competition (thanks to everyone who voted!)
The market is now also giving Solana a better than 50% chance of winning an ETF approval in the early half of this year. That could be a big shot in the arm when it happens. If you’re playing catchup, or looking for help explaining to friends why Solana is different than Ethereum, our episode from 2022 has aged very well.
Tax Tip of the Week
If there’s one thing billionaires are good at (besides triggering Bernie Sanders) it’s saving on taxes. So much so that PayPal co-founder Peter Thiel once became known as the King of the Roth IRAs to shield all his millions in startup investments.
Now, there’s a tax startup looking to re-create Thiel’s playbook for crypto holders. The company, AnchorZero, is helping investors move early token investments into IRAs. That also might provide us a good opportunity for us to remind people it’s probably not a bad idea to be buying Bitcoin or Ethereum via IRAs where possible. As AnchorZero’s CEO tells us, it all adds up over time.
Say you bought Bitcoin at $1,000 and now it’s $100,000. That’s $99,000 of appreciation. In a high-tax state, you’re looking at losing $35,000 to taxes. But in a Roth IRA? Zero taxes. Almost on your way to becoming a billionaire. 😎
Have a great weekend! We’ll see you Monday for our usual Coinage News Recap with live coverage of Trump’s inauguration with Dragonfly General Partner Rob Hadick recapping all the big headlines!
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