Crypto Political Bull Run: A Turning Point in Cryptocurrency Regulation

Thanks to ETH ETF approval, politics is actually playing a bigger role in cryptocurrencies. Conversely, a majority of US senators voted to support the cryptocurrency regulatory bill co-sponsored by Senator Cynthia Lummis.

In a series of recent posts on X, cryptocurrency analyst Miles Deutscher highlighted several significant market developments over the past week, suggesting that they could signal a major shift in market dynamics. He believes that 2024 could be a significant year for cryptocurrencies, driven by major political and regulatory changes.

Here’s why: The Year of Crypto 2024

Trump’s bullish approach to cryptocurrencies

Trump has strongly supported the cryptocurrency sector on social media, declaring his commitment to creating a cryptocurrency-friendly environment if re-elected. He stressed the need for the United States to play a leading role in the crypto industry. He criticized President Biden’s administration for its treatment of the crypto space, suggesting Biden is seeking to kill the industry.

Ethereum ETF Surprise Approval

Shortly after Donald Trump embraced cryptocurrencies, came the unexpected adoption of ETFs. ETFs allow investors to buy shares representing Ethereum ownership, making it easier for small investors to invest in the cryptocurrency market.

Adoption of the FIT21 Act

Next up is the FIT21 Act, which was recently passed by the US House of Representatives. The aim of this law is to create a more orderly and transparent regulatory framework for cryptocurrencies. This is seen as a positive step towards resolving the regulatory uncertainty that has long plagued the cryptocurrency industry.

Changes in the Biden administration’s crypto policy

Meanwhile, recent actions by the Biden administration suggest a change in its position on cryptocurrencies. The SEC approved Ethereum ETFs and the House passed the FIT21 Act, pointing to a warmer regulatory climate. These moves appear to be aimed at gaining support from pro-cryptocurrency voters ahead of the election.

Approval of the anti-CBDC law

A new anti-Central Bank Digital Currency (CBDC) law has been passed, signaling concerns about government-controlled digital currencies. This suggests that people like Bitcoin and Ethereum more because they are decentralized and not controlled by governments.

Political bull run, is there a twist?

Deutscher’s analysis suggests that these events could lead to a “political bull market” in 2024. By publicly supporting cryptocurrencies, Trump and Biden can mobilize a large voter base, showing that cryptocurrencies are accepted on a broader platform.

However, Bitcoin supporter Samson Mow is not optimistic about politicians’ involvement in cryptocurrencies. He believes this could harm Bitcoin. Mow warned that without sticking to Bitcoin’s basic principles, problems like FTX, Luna and Genesis could repeat themselves, causing large financial losses.

What benefits do you think will come from the involvement of politicians or the destruction of cryptocurrencies?