Regulation
If history repeats itself, could Bitcoin face 1930s-style regulation? Should you support Trump?
Bitcoin has now gone 137 days without hitting a new all-time high, and this comes after last weekend’s Bitcoin conference in Nashville, where former President Donald Trump gave a speech.
Second analyst Jason Pizzino, tThis phase marks the peak of the cycle where everything seems to be rising, including Bitcoin, other cryptocurrencies, stock markets, and real estate. Historically, such peaks are followed by corrections, which could be more severe than expected, given the shallow or rapid corrections of the last 15 years.
He also mentioned a signal from March 2024, where the S&P 500 showed three consecutive days of decline, indicating a potential top for Bitcoin. Since then, Bitcoin has been below its high for 137 days. We are currently in that period, with four months having passed a few weeks ago, about 120 days, and extending to six months, which would take us to around September 11th.
The analyst also noted the stability of Bitcoin price around $68,000-$69,000, with significant support levels identified. Ethereum (ETH) and Solana (SOL) are analyzed, with Solana showing strong performance against Bitcoin and potential for further gains.
Will Trump’s Pro-Crypto Stance Put Bitcoin on the Moon?
At the recent Bitcoin Nashville conference, Trump urged people to hold on to Bitcoin, suggesting it could become a reserve currency. This announcement, while exciting, should be viewed in the context of historical market behavior, the analyst said.
Senator Cynthia Lummis also proposed that the U.S. Treasury purchase $1 million worth of Bitcoin, although this idea, while intriguing, may be far-fetched given the current circumstances. Trump’s comments at the conference reflect a significant shift in attitude toward Bitcoin, from skepticism to promoting its potential as a strategic reserve asset.
Trump’s plans, including firing SEC Chairman Gary Gensler, are in line with what the crypto community wants to hear. However, it’s important to remember that market cycles operate independently of political rhetoric.
He highlighted the 1930s US ban on gold ownership and compared it to the current promotion of Bitcoin, suggesting that history could repeat itself and that Bitcoin could be heavily regulated or seized by the government in the future.