The crypto industry is throwing its weight around in Washington in hopes of influencing the upcoming U.S. elections, spending an unprecedented amount of money to get crypto-friendly candidates elected and educate lawmakers – all in hopes of finally getting a friendly regulatory framework for crypto established.
Bitcoin might have posted the deepest correction since the FTX crash in November 2022, dipping over 20% from its all-time high of around $74,000. However, Glassnode analysts, while sharing their preview on X, remain cautiously optimistic. Bitcoin Drops 20% From March High, But Glassnode Is Bullish Glassnode notes that the Bitcoin “macro uptrend still appears to be one of the more resilient in history” and that though corrections have been made, they are relatively shallow. With this position, the blockchain analytics platform confirms that the coin has improved with liquidity rising, reducing volatility. Related Reading: Crypto Expert Forecasts The ‘Age of Ethereum’: What This Means Following the correction from March 2023 highs, Bitcoin has struggled to maintain the uptrend. So far, BTC has support at around $60,000, but a key reaction level to watch is $56,500 on the lower side. On the flip side, if prices recover, breaking above $66,000, BTC might rally, even breaching $72,000 and later $74,000. However, for bulls to find support and prices to rally, triggers would be from fundamental factors. Though price action structure might offer support, price catalysts are, as history shows, related to market events. As Glassnode observes, the robust macro trend, bullish for Bitcoin, has tapered volatility, helping maintain the uptrend. The increasingly shallow corrections, as the blockchain analytics platform notes, point to a more mature market backed by more institutions. Whales Accumulating As Institutions Eye BTC Confidence remains high. On-chain data reveals that one whale has taken advantage of the relatively low prices and the correction to stack coins. In the last week, the whale bought over 100 BTC, pushing the amount of coins bought this month to over 7,257 BTC. This aggressive accumulation suggests that the whale, even at the current multi-year high, Bitcoin could be undervalued. There could be more Bitcoin tailwinds incoming. For instance, this week, former United States president Donald Trump started accepting crypto donations in the ongoing campaign. This shift of stance has been bullish since Trump dismissed Bitcoin earlier. While this happens, European regulators appear open to approving Bitcoin as an investable asset within Undertakings for Collective Investment in Transferable Securities (UCITS) funds. If this goes through, it could unlock more billions into Bitcoin from European institutions. This move is massive, considering that banking giants like Morgan Stanley and BNP Paribas are already exploring ways for their clients to invest in BTC. Related Reading: Bitcoin Short Term NUPL Value Turns Negative, What This Means For Price From a macro level, the rising M2 money supply in the United States amid concerns from the United States Federal Reserve that inflation is high might further buoy Bitcoin demand. BTC, like gold, is considered a safe haven, a hedge against inflation since its supply is designed to be deflationary. Feature image from DALLE, chart from TradingView
Former President Donald Trump recently voiced strong support for Bitcoin and cryptocurrencies, notably diverging from his previously skeptical stance. This significant pivot, prominently featured in a recent video circulating among crypto enthusiasts and investors, has spurred speculation about the potential implications for Bitcoin and other digital currencies as the US election approaches this November. How Trump Could Boost Bitcoin Price The comments made by Trump were discussed by analyst MacroScope on X. The analyst emphasized the importance of Trump’s statements: “By now, you’ve probably seen the video of Trump‘s strident and arguably stunning pro-crypto comments.” MacroScope suggested that the implications of Trump’s newfound support could be profound, particularly because a positive shift in policy from Washington, D.C., regarding cryptocurrencies has not been factored into current market prices. MacroScope further advised, “In terms of potential price impact on BTC, this should be watched very, very closely in coming months.” The statement reflects a broader sentiment within the financial community that political endorsements can lead to market movements, particularly when they suggest a shift in regulatory approaches. The analyst drew parallels to the market’s underestimation of the impact of the spot Bitcoin ETFs, indicating that a similar scenario might unfold if Trump’s supportive comments translate into formal policy changes. By now, you've probably seen the video of Trump's strident and arguably stunning pro-crypto comments. In terms of potential price impact on BTC, this should be watched very, very closely in coming months. It should go without saying that a constructive policy shift in DC is not… https://t.co/KL0RNqawZg — MacroScope (@MacroScope17) May 9, 2024 Meanwhile, the credibility of Trump’s promises is a critical factor in assessing the potential outcomes of his pro-crypto statements. While Trump is known for making ambitious promises to rally support, MacroScope noted, “Yes, he will promise anything in front of a crowd to get applause. But from various insider accounts, we also know that once he makes a high-profile promise, he’s acutely aware of the attention and approval it got, and he feels obligated to at least show the appearance of following through in terms of policy.” Related Reading: Latest Bitcoin Top Is Different From 2021 Peak, Analyst Explains Why This behavioral pattern suggests that Trump may continue to champion pro-Bitcoin and crypto policies, at least in appearance, to maintain the favor he has garnered from these statements. Moreover, the political discourse surrounding cryptocurrencies is intertwined with speculations about future leadership at the Federal Reserve. Former Fed Governor Kevin Warsh, who is viewed as a potential successor to Jerome Powell, has previously expressed a nuanced understanding of Bitcoin’s value, particularly in light of a weakening dollar. In a statement made in 2021, Warsh remarked, “It does make some sense to me,” referring to Bitcoin’s resilience during times of dollar depreciation. The potential appointment of Warsh could herald a more favorable regulatory environment for cryptocurrencies, aligning with Trump’s pro-crypto rhetoric. Analyzing Trump’s BTC Stance: Julian Fahrer’s Insights Julian Fahrer, co-founder and CEO of Apollo, also recently offered a nuanced analysis of Donald Trump’s relationship with Bitcoin and crypto, spanning from his presidency to his post-presidential activities. Fahrer’s perspective is crucial in dissecting Trump’s public statements against his administrative actions. During his presidency, Trump openly criticized Bitcoin and cryptocurrencies, notably after Meta’s attempt to launch the Libra stablecoin in 2019. Trump famously stated, “I am not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.” Related Reading: Bitcoin Gets A ‘Monster’ Whale Boost With $1.2 Billion ETF Purchase Despite these comments, Trump’s appointments suggest a more complex position towards crypto. He appointed Hester ‘Crypto Mom’ Pierce to the SEC, known for her dissenting opinions in favor of Bitcoin and crypto, and Steve Mnuchin as Treasury Secretary, who viewed cryptocurrencies as a national security threat. This dichotomy shows that Trump’s administration maintained a somewhat ambiguous stance on crypto regulation, characterized by tightened KYC/AML rules by the Financial Action Task Force, alongside the Commodity Futures Trading Commission’s approval of crypto futures products. Post-presidency, Trump’s attitude appears to have shifted significantly. His venture into Trump Digital Trading Cards and disclosure of owning $2.8 million in ETH in 2023 signal a newfound embrace of digital assets. This change could be attributed to strategic shifts or financial incentives. Furthermore, Trump’s recent interactions, including bringing pro-Bitcoin Vivek Ramaswamy into his circle and positive comments on Fox about Bitcoin, indicate a potential pivot towards a more crypto-friendly posture if he were to secure a second term. Fahrer aptly notes, “The bigger an enemy of Bitcoin and crypto the Democrats seem to be, the more Trump appears to be embracing it.” This analysis underscores the fluidity between Trump’s rhetoric and his policy actions regarding Bitcoin and cryptocurrencies, with Fahrer concluding that Trump’s evolving stance could lead to a ‘full on Degen Don’ as the November election approaches. Notably, investment giant VanEck predicted at the beginning of the year that a Trump victory will propel the Bitcoin price to a new all-time high on November 9th and potentially reach $100,000 by December. At press time, BTC traded at $63,024. Featured image from BlockTrends, chart from TradingView.com
Former President Donald Trump continued his advances toward the crypto community by hosting an event for holders of the Trump Cards NFT Gala on May 8 at his Mar-a-Lago resort in Palm Beach, Florida. During the event, Trump expressed his support for cryptocurrencies, announcing plans to accept digital asset donations for his potential re-election campaign. […]
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Trump vows to create a supportive environment for crypto businesses in the US and signals his campaign will accept crypto donations.
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Anyone who spent at least $4,653 on Trump’s “Mugshot” NFTs will be able to have dinner with the former president in Florida on May 8.
Also: Trump faces likely conviction, per Polymarket punters; CFTC hearing to discuss political betting ban.
Bitcoin sets up a liquidation battle to hit $73,000 for the first time in a blockbuster start to the week's Wall Street trading.
Former president and Republican front-runner Donald Trump has said Bitcoin has taken a life on its own and will probably need some regulation.
The GOP frontrunner claims even experts can be fooled by AI “there’s no solution.”
The presidential candidates acknowledges the importance of the issue and credits Vivek Ramaswamy for bringing it to his attention.
The Republican frontrunner credited former candidate Vivek Ramaswamy for the policy.
Vivek Ramaswamy and Ron DeSantis quit the U.S. presidential race, while Donald Trump promised to “never allow” a CBDC in the country.
Representative Tom Emmer expressed his dedication to working with Donald Trump to oppose what they perceive as an expansion of government surveillance.
U.S. presidential candidate Donald Trump made the promise during a campaign speech in Portsmouth to a round of cheers and applause.