Recent political and regulatory developments indicate that 2024 could be a significant year for the cryptocurrency market. Cryptocurrency analyst Miles Deutscher listed several events that could signal major changes in market dynamics due to important political and regulatory shifts.
Former US President Trump’s Cryptocurrency Support and Subsequent Events
Former US President Donald Trump emphasized his strong support for the cryptocurrency market by pledging to create a crypto-friendly environment if re-elected.
Trump criticized the current administration, accusing President Joe Biden of trying to undermine the crypto industry. Trump’s pro-crypto stance aims to position the US as a leader in the global cryptocurrency sector.
In a surprising move, shortly after Trump’s pro-crypto statements, the US Securities and Exchange Commission (SEC) announced the approval of a spot Ethereum ETF. ETFs allow investors to buy shares representing ownership of Ethereum (ETH), making it easier for small investors to invest in the cryptocurrency market. This approval is seen as a significant step towards increasing accessibility and potentially wider adoption of ETH.
The US House of Representatives recently passed the FIT21 bill, which aims to create a more structured and clear regulatory framework for cryptocurrencies. This bill is seen as a positive development in addressing the long-standing regulatory uncertainty in the cryptocurrency sector.
The approval of the FIT21 bill is expected to provide more clarity and stability, encouraging more investment in the cryptocurrency sector.
Recent developments seem to indicate a shift in the Biden administration’s stance on cryptocurrencies. The SEC’s approval of spot Ethereum ETFs and the House of Representatives’ passing of the FIT21 bill point to a warmer regulatory environment.
Experts view these actions as part of a strategy to gain the support of pro-crypto voters ahead of the upcoming elections.
Meanwhile, a new bill opposing Central Bank Digital Currencies (CBDCs) was passed, reflecting concerns about state-controlled digital currencies. This development indicates a preference for decentralized cryptocurrencies like Bitcoin (BTC) and Ethereum.
The Potential for a “Political Bull Run” in the Cryptocurrency Market Becomes Clearer
Deutscher suggested that the above events could lead to a “political bull run” in 2024. Both Trump and Biden openly supporting cryptocurrencies could mobilize a broad voter base and show wider acceptance of cryptocurrency on the political stage.
However, there are concerns about politicians getting involved in the cryptocurrency market. Bitcoin supporter Samson Mow warned that political interference could harm the largest cryptocurrency if core principles are not maintained. Past issues like the collapses of FTX, Luna, and Genesis were cited as potential risks if the market strays from its fundamental values.
