Bitcoin Long-Term vs Short-Term Holding Strategy: Which Is Better?
- 31 Oct 2025
Bitcoin has surged to unprecedented price levels, surpassing $120,000, as the cryptocurrency industry celebrates significant political and regulatory advancements in the United States. This surge coincides with a pivotal “Crypto Week” in Washington D.C., where lawmakers are debating key legislation aimed at providing a clearer regulatory framework for digital assets.
The U.S. Senate has passed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bipartisan bill that creates a federal regulatory framework for stablecoins. This marks a significant victory for the crypto industry, which has long advocated for clear rules. The bill requires stablecoins to be backed by liquid assets and issuers to disclose reserve compositions.
Following the Senate’s lead, the U.S. House of Representatives is currently debating three key pieces of legislation during “Crypto Week.” Alongside the GENIUS Act, the House is considering the Digital Asset Market Clarity Act, which aims to define regulatory roles for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) regarding digital tokens, and the Anti-CBDC Surveillance State Act, which would prevent the Federal Reserve from issuing a central bank digital currency.
President Donald Trump has been a vocal proponent of the crypto industry, urging policymakers to shift from a litigious approach to one that fosters innovation. His administration has established a “strategic bitcoin reserve” and aims to make the U.S. the “crypto capital of the world.” This political backing has been a significant tailwind for the market.
The positive legislative developments and political support have fueled a broad rally across the cryptocurrency market. Bitcoin’s price has seen a substantial increase, up 29% year-to-date, reaching a record high of $122,055. Ether, the second-largest cryptocurrency, has also experienced significant gains, reaching a five-month high. The total market value of cryptocurrencies has swelled to approximately $3.8 trillion.
Beyond price surges, the new legislation is expected to bring greater clarity and stability to the market, potentially encouraging more institutional investment and wider adoption of digital assets. The GENIUS Act, in particular, is anticipated to foster competition in the stablecoin market, moving beyond the current duopoly of Circle’s USDC and Tether’s USDT.
Adding to the momentum, the SEC has launched “Project Crypto,” an initiative designed to modernize securities rules and regulations to facilitate crypto-based trading. SEC Chair Paul Atkins stated the goal is to transition U.S. financial markets from an “off-chain” to an “on-chain” environment, leveraging blockchain technology. This move aims to unleash the potential of on-chain software systems in securities markets and prevent innovative companies from relocating overseas due to burdensome regulations.
While the legislative push has been met with enthusiasm from the crypto industry, some critics, including Democratic Senators, have raised concerns. They argue that the proposed rules might concede too much ground to the industry, potentially enabling corruption or undermining existing securities laws. Despite these concerns, the prevailing sentiment is that these legislative steps represent a significant step forward for the digital asset sector in the United States.
