Regulation
Top 5 Reasons Why 2024 Could Be a Bull Year for Cryptocurrencies
The recent approval of ETH ETFs is shaking up the cryptocurrency scene, putting the spotlight on the influence of politics.
In a series of recent posts on X, crypto analyst Miles Deutscher highlighted several significant events that have occurred in the market over the past week, suggesting they could mark a major shift in market dynamics. He believes 2024 could be a significant year for cryptocurrencies, driven by major political and regulatory changes.
Trump Support: A Boost for Cryptocurrencies?
Former President Trump’s public support of the cryptocurrency industry via social media has injected an intriguing element into the political arena. He promises a crypto-friendly environment if given another term, underscoring the importance of US leadership in this emerging sector. Trump’s criticism of President Biden’s approach hints at political tensions surrounding cryptocurrency policies.
ETH ETF: doors open to small investors
The surprise approval of Ethereum ETFs has made it easier for small investors to enter the cryptocurrency market. This move signifies a significant shift in affordability and could reshape market dynamics in the coming year.
FIT21 bill: clarifications on the regulations
The recent passage of the FIT21 bill by the US House of Representatives is a crucial step towards establishing clearer regulations for cryptocurrencies. This legislative advancement addresses concerns about regulatory uncertainty, paving the way for a more structured market.
Biden’s change of stance on cryptocurrencies
Contrary to previous perceptions, the Biden administration’s recent actions suggest a shift in its approach to cryptocurrencies. The SEC approvals of Ethereum ETFs and the passage of the FIT21 bill in the House indicate a warming trend in regulatory attitudes. These moves appear to be aimed at gaining support from pro-crypto voters in the upcoming elections.
Increase in anti-CBDC sentiment
The passage of an anti-CBDC (Central Bank) bill reflects growing concerns over government-controlled digital currencies. This highlights a preference for decentralized alternatives such as Bitcoin and Ethereum, seen as independent of government influence.
Political brewing for the running of the bulls
Deutscher’s analysis suggests that these events could lead to a “political race to the top” in 2024. By publicly supporting cryptocurrencies, Trump and Biden can mobilize a broad voter base, which shows that cryptocurrencies are embraced on a more wide.
However, Bitcoin advocate Samson Mow is not optimistic on politicians involved in cryptocurrencies. He believes this could harm Bitcoin. Mow warned that without sticking to Bitcoin’s core principles, problems such as the collapse of FTX, Luna and Genesis could happen again, causing large financial losses.
Help us understand your perspective: Are you bullish or bearish on cryptocurrencies in 2024?