The year 2024 holds great potential for the cryptocurrency market, with recent political and regulatory developments indicating significant changes on the horizon. Cryptocurrency analyst Miles Deutscher has identified several events that could trigger major shifts in market dynamics, driven by important political and regulatory shifts.
Former US President Donald Trump has emerged as a strong advocate for the cryptocurrency market, pledging to create a crypto-friendly environment if re-elected. Trump has been critical of President Joe Biden’s attempts to undermine the industry, aiming to position the US as a global leader in the cryptocurrency sector.
Shortly after Trump’s pro-crypto statements, the US Securities and Exchange Commission (SEC) made a surprising move by approving a spot Ethereum ETF. This development allows investors to purchase shares representing ownership of Ethereum (ETH), making it more accessible for small investors to enter the cryptocurrency market. The approval of this ETF is seen as a significant step toward increasing accessibility and potentially fostering wider adoption of ETH.
The US House of Representatives has also taken steps to address the long-standing regulatory uncertainty surrounding cryptocurrencies. They recently passed the FIT21 bill, which aims to establish a clearer and more structured regulatory framework for the industry. This bill is viewed as a positive development that will provide more clarity and stability, encouraging greater investment in the cryptocurrency sector.
These recent developments suggest a shift in the Biden administration’s stance on cryptocurrencies. The SEC’s approval of spot Ethereum ETFs and the passing of the FIT21 bill by the House of Representatives indicate a more favorable regulatory environment. Experts believe these actions are part of a strategy to secure the support of pro-crypto voters in the upcoming elections.
In addition, a new bill opposing Central Bank Digital Currencies (CBDCs) has been passed, highlighting concerns about state-controlled digital currencies. This development signals a preference for decentralized cryptocurrencies like Bitcoin (BTC) and Ethereum.
Considering these events, Deutscher suggests that 2024 could witness a “political bull run” in the cryptocurrency market. The open support for cryptocurrencies from 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 becoming involved in the cryptocurrency market. Bitcoin supporter Samson Mow warns 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, are cited as potential risks if the market deviates from its fundamental values.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research before making any investment decisions.