The cryptocurrency market could experience significant changes in 2024 due to recent political and regulatory developments, according to cryptocurrency analyst Miles Deutscher. Several events indicate a shift in market dynamics as a result of important political and regulatory shifts.
Former US President Donald Trump expressed his strong support for the cryptocurrency market and promised to create a crypto-friendly environment if re-elected. He criticized the current administration, accusing President Joe Biden of undermining the crypto industry. Trump’s pro-crypto stance aims to position the US as a leader in the global cryptocurrency sector.
Shortly after Trump’s pro-crypto statements, the US Securities and Exchange Commission (SEC) approved a spot Ethereum ETF. This allows investors to buy shares representing ownership of Ethereum (ETH), making it easier for small investors to enter the cryptocurrency market. The approval of the ETF 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 establish 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. Its approval is expected to provide more clarity and stability, encouraging more investment in the cryptocurrency sector.
These recent developments suggest a change in the Biden administration’s stance on cryptocurrencies. The approval of spot Ethereum ETFs by the SEC and the passing of the FIT21 bill by the House of Representatives indicate a more favorable regulatory environment.
Experts believe that these actions are part of a strategy to gain the support of pro-crypto voters ahead of the upcoming elections. Additionally, a new bill opposing Central Bank Digital Currencies (CBDCs) was passed, reflecting concerns about state-controlled digital currencies. This suggests a preference for decentralized cryptocurrencies like Bitcoin (BTC) and Ethereum.
Deutscher suggests that these events could lead to a “political bull run” in 2024. The open support of cryptocurrencies by both Trump and Biden could mobilize a broad voter base and demonstrate wider acceptance of cryptocurrency on the political stage.
However, there are concerns about politicians interfering in the cryptocurrency market. Bitcoin supporter Samson Mow warned that political interference could harm the largest cryptocurrency if core principles are not upheld. Past issues, such as the collapses of FTX, Luna, and Genesis, were cited as potential risks if the market deviates from its fundamental values.
Please note that the information in this article should not be considered investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.
