With ETH ETF’s approval in gist, politics plays a bigger role in crypto. Conversely, most US Senators voted to support a crypto regulatory bill co-prepared by Senator Cynthia Lummis.
In a series of recent X posts, crypto analyst Miles Deutscher highlighted several significant events in the market over the past week, suggesting they might mark a major shift in the market’s dynamics. He believes that 2024 could be a significant year for crypto, driven by major political and regulatory changes.
Here’s Why: The 2024 Year of Crypto
Trump’s Bullish Take on Crypto
Trump has strongly supported the cryptocurrency sector on Social media, stating his commitment to creating a crypto-friendly environment if re-elected. He emphasized the need for the U.S. to lead in the crypto industry. He criticized President Biden’s administration for treating the crypto space, suggesting that Biden aims to kill the industry.
Surprise Approval of Ethereum ETF
Soon after Donald Trump embraced crypto, an unexpected ETF approval came. ETFs allow investors to buy shares representing Ethereum ownership, making it easier for small traders to invest in the crypto market.
The passing of the FIT21 Bill
Next up is the FIT21 bill, which recently passed in the U.S. House of Representatives. This bill aims to create a more structured and clear regulatory framework for cryptocurrencies. It is seen as a positive step toward addressing the regulatory uncertainty that has long plagued the crypto industry.
Shifts in Biden Administration’s Crypto Policy
Meanwhile, the Biden administration’s recent actions suggest a shift in its cryptocurrency stance. The SEC approved Ethereum ETFs, and the House passed the FIT21 Act, indicating a warmer regulatory climate. These moves seem aimed at gaining support from pro-crypto voters ahead of the election.
Anti-CBDC Bill Approval
A new anti-Central Bank Digital Currency (CBDC) bill was passed, signaling concerns about government-controlled digital currencies. This suggests people like Bitcoin and Ethereum more because they’re decentralized, not controlled by governments.
Political Bull Run, or is there a twist?
Deutscher’s analysis suggests these events could lead to a “political bull run” in 2024. By publicly supporting cryptocurrencies, Trump and Biden can mobilize a large voter base, which shows that crypto is embraced on a wider platform.
However, Bitcoin supporter Samson Mow is not optimistic about politicians getting involved in crypto. He believes this could harm Bitcoin. Mow warned that without sticking to Bitcoin’s core principles, issues like FTX, Luna, and Genesis collapses could happen again, causing big financial losses.
What do you think politicians’ involvement will benefit or doom crypto?
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