The recent approval of ETH ETFs is shaking up the cryptocurrency scene, shining a spotlight on the influence of politics.
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.
Trump’s Support: A Boost for Cryptos?
Former President Trump’s public backing of the cryptocurrency sector via social media has injected an intriguing element into the political arena. He promises a crypto-friendly environment if given another term, underlining the importance of US leadership in this emerging industry. Trump’s criticisms of President Biden’s approach hint at the political tensions surrounding crypto policies.
ETH ETFs: Opening Doors for Small Investors
The surprise approval of Ethereum ETFs has made it easier for small investors to join the crypto market. This move signifies a significant shift in accessibility and could reshape market dynamics in the coming year.
FIT21 Bill: Clarifying Regulations
The recent passing of the FIT21 bill in the US House of Representatives is a crucial step toward establishing clearer regulations for cryptocurrencies. This legislative progress addresses concerns about regulatory uncertainty, paving the way for a more structured market.
Biden’s Changing Stance on Crypto
Contrary to earlier perceptions, the Biden administration’s recent actions suggest a shift in its approach to cryptocurrencies. Approvals of Ethereum ETFs by the SEC and the passing of the FIT21 Act in the House indicate a warming trend in regulatory attitudes. These moves appear to be aimed at winning support from pro-crypto voters in upcoming elections.
Rise of Anti-CBDC Sentiment
The passage of an anti-Central Bank Digital Currency (CBDC) bill reflects growing concerns about government-controlled digital currencies. This highlights a preference for decentralized alternatives like Bitcoin and Ethereum, seen as independent of government influence.
Political Bull Run Brewing
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.
Help us understand your perspective: Are you bullish or bearish on crypto in 2024?
