Bitcoin
Donald Trump or Joe Biden for Bitcoin?
As the presidential election nears, industry leaders are closely observing how the candidates, Joe Biden and Donald Trump, may impact Bitcoin and the broader crypto market.
The stakes are heightened by their upcoming historic debate on CNN, which could significantly set the stage for what comes next.
SEC’s Regulatory Agenda
Ripple CEO Brad Garlinghouse has criticized SEC Chairman Gary Gensler’s aggressive stance on crypto regulation. He argues that Gensler’s failure to address issues like FTX and Binance undermines his credibility.
“Absolute nonsense coming from Gary Gensler today. And this slander about ‘all crypto execs going to jail’ from the man who completely missed FTX (and actually cozied up to SBF), and wasn’t even invited to the DOJ announcement about Binance,” Garlinghouse said.
Garlinghouse also criticized Gensler for misrepresenting the American people’s interests. Therefore, the SEC Chair should have have been removed from his position long ago. He went even further to suggest that Gensler’s actions could jeopardize Biden’s chances in the upcoming election.
Mark Cuban shares a similar sentiment, emphasizing that regulatory challenges in the US are stifling the crypto industry. He contrasts this with more favorable environments like Singapore and Japan.
Like Garlinghouse, Cuban believes Gensler’s actions could alienate younger voters heavily invested in crypto.
“If he has a political career in mind, he’s done, and he literally could cost Joe Biden the election because there are a whole lot of Gen Z, Gen X, millennials that own a whole lot of crypto, and by not making it easy to register, it makes it easier for all the scam coins to exist,” Cuban emphasized.
Who’s Better for Bitcoin?
Despite the sentiment that Gensler’s regulatory approach to the crypto market has generated, choosing between Trump and Biden for Bitcoin involves evaluating their policies. Trump has always been known for his enthusiastic support of Bitcoin and the blockchain space. Meanwhile, Biden’s stricter regulations ensure market stability and security, but may stifle innovation.
Niel Roarty, analyst at Stocklytics, told BeInCrypto the general consensus in the industry leans more towards Trump due to his vocal support for Bitcoin.
“The consensus among the crypto community seems to be that a Trump victory would be favorable for the industry. Aside from the vocal support he’s given, Bitcoin has tended to perform well during periods of political and economic uncertainty, and a second Trump presidency will likely see more of both,” Roarty noted.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
On the other hand, Max Jones, Founder of Memepad, told BeInCrypto about the influence of presidential meme coins in the election. He believes that meme coins reflect public sentiment towards political figures and demonstrate how cryptocurrency is intertwining with politics.
“Trump-based memecoins like MAGA, MAGA Hat, Doland Tremp, Super Trump, MAGA VP, and Trump Mania are leading the trend. Over the past 24 hours, these tokens have soared by over 19% each. The high posturing to Trump might take precedence in his crypto-focused campaign… President Joe Biden also has dedicated meme coin projects that are tied to him. Of the Biden-themed tokens, Jeo Boden, with a 5.1% surge to $0.1549 in 24 hours, is the most valuable,” Jones added.
As the campaign heats up, Jones believes these meme coins could act as a measure of popularity for the candidates. Their volatility is influenced by the hype surrounding the politicians they represent, but their growth also reflects broader market trends.
While it is uncertain which meme coins will endure, they currently provide an unusual gauge for Trump and Biden. Roarty maintains that the upcoming presidential debate between Biden and Trump may impact these meme coins.
“Biden does hold the edge when it comes to presidential meme coins, however, which are created and traded by crypto enthusiasts although not endorsed by the candidates themselves. The BODEN coin, modelled after the president, currently holds a market capitalization of $107 million, compared to the $82 million of TREMP,” Roarty shared.
In a related discussion, Anthony Pompliano recently talked about how stablecoins could help address the US debt crisis by providing steady demand for treasuries. This perspective ties into the broader debate on crypto policies between Biden and Trump.
Trump’s pro-Bitcoin stance suggests a favorable environment for stablecoins to aid in debt management. On the other hand, Biden’s regulatory approach and exploration of a CBDC could impact stablecoin utilization.
The upcoming presidential election could play a crucial role in shaping the future regulatory environment for cryptocurrencies in the US. Indeed, the outcome will greatly affect the industry’s growth and stability.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin
What $2.2 Billion Means for Market
Defunct crypto exchange Mt. Gox, once the most significant player in Bitcoin trading, moved $2.2 billion worth of Bitcoin on Monday. The transaction marked one of its largest transactions since its infamous 2014 collapse.
Blockchain analytics firm Arkham Intelligence identified the movement of 32,371 BTC, a transaction that has sent waves through the crypto market.
Mt. Gox Moves 32,371 Bitcoin
Arkham Intelligence’s analysis revealed that a prominent wallet address labeled “1FG2C…Rveoy,” moved 30,371 BTC, while an additional 2,000 BTC initially went to a Mt. Gox cold wallet before being moved to a different, unmarked address.
Spotonchain confirms the report, indicating that over the last four days, Mt. Gox has moved Bitcoin worth $2.22 billion. Among these tokens, 296 BTC valued at $20.13 million was moved to B2C2 and OKX. Such significant transfers are noteworthy because they often signal preparations for creditor distributions.
Read more: Top Crypto Bankruptcies: What You Need To Know
As BeInCrypto reported, Mt. Gox has already funneled smaller amounts to creditors using exchanges like Bitstamp and Kraken. The exchanges helped facilitate smooth transfers for those affected by the exchange’s collapse a decade ago. Meanwhile, analysts predict continued volatility, especially as the US election cycle adds a layer of uncertainty to global markets.
“The recent $2.2 billion Bitcoin movement and extended repayment timeline from Mt. Gox will likely inject some volatility into the market in the short term. With such a large amount of Bitcoin potentially entering circulation, there’s bound to be short-term price swings as recipients decide whether to hold or sell,” Peter Watson, Chief Market Officer at Velar, told BeInCrypto.
Indeed, following the transfer, Bitcoin prices momentarily dipped below $68,000 during Asian market trading, briefly rattling investor confidence. However, the asset quickly rebounded to trade for $68,810 as of writing.
However, Watson says the impact may be less severe than some fear, especially as many creditors have had years to consider their strategies. Further, he observes that this could benefit market confidence.
“For many, seeing the Mt. Gox saga finally come to a close may reinforce the belief that Bitcoin is better equipped for sustained growth and stability.. ultimately strengthening confidence in its future,” Watson added.
An Ongoing Saga of Repayment and Recovery
The transfer occurred just a week after Mt. Gox extended its repayment deadline for creditors by another year, much to their frustration. The decision was partly due to the logistical and technical hurdles of coordinating payments to thousands of creditors.
“Many rehabilitation creditors still have not received their repayments because they have not completed the necessary procedures for receiving repayments. Additionally, a considerable number of rehabilitation creditors have not received their repayments due to various reasons, such as issues arising during the repayments process,” Mt. Gox explained.
This process has been an agonizing journey for creditors, filled with delays, legal complications, and financial uncertainty. The repayment saga continues, fueling concerns over market volatility. However, analysts suggest that the postponement could be delaying a potential sell-off.
“$4 billion payment selling pressure now shifted to 2025,” one user shared on X.
Read more: Who Owns the Most Bitcoin in 2024?
According to data on Arkham, Mt. Gox still holds 44,378 BTC, which is valued at approximately $3.05 billion. As the market continues to advance, events like Mt. Gox’s transfers serve as reminders of the industry’s turbulent past. For creditors, however, the wait remains, extending a wait that has already spanned nearly a decade.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin
US Elections Push Crypto Investment Inflows to $2.17 Billion
Crypto investment inflows surged to $2.17 billion last week, reaching an unprecedented $29.2 billion in year-to-date inflows. This influx elevated the total assets under management (AUM) in digital assets to over $100 billion, a level previously reached only in June 2024.
The rise comes amid renewed interest in Bitcoin, which captured the majority of these investments, with trading volumes up by 67% to $19.2 billion. This activity represented a significant 35% of Bitcoin’s trading volume on trusted exchanges.
Inflows To Digital Asset Investment Products Reach $2.2 Billion
The latest CoinShares report attributes recent crypto inflows to the upcoming US elections on November 5. Anticipation of a potential Republican victory appears to be fueling interesthttps://beincrypto.com/donald-trump-to-overhaul-us-crypto-rules/, as the GOP is often viewed as more favorable toward relaxed regulations on digital assets.
“We believe euphoria around the prospect of a Republican victory was the likely reason for these inflows as they were in the first few days of last week, as polls have turned, we saw minor outflows on Friday, highlighting how sensitive Bitcoin is to the US elections at present,” the report read.
Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know
Bitcoin dominated last week’s inflows, with $2.15 billion reflecting investor confidence. A minor yet notable $8.9 million also flowed into short-Bitcoin products, hinting at some hedging among investors amidst Bitcoin’s strong price movement.
Meanwhile, Ethereum saw modest inflows totaling $9.5 million, displaying a marked difference in sentiment compared to Bitcoin and Solana, which received $5.7 million. Other altcoins, including Polkadot and Arbitrum, saw smaller investments, with $670,000 and $200,000 respectively.
This development is unsurprising given how the run-up to the US elections has catalyzed substantial interest in digital assets over the past few weeks. As BeInCrypto reported, October already saw inflows reaching $901 million in the last week after recording up to $2.2 billion in positive flows the week prior and $407 million in the first week of October.
During these weeks, CoinShares’ James Butterfill credited the positive flows to a Republican victory potentially favoring regulatory policies for digital assets.
Fate of Crypto Investment Inflows After US Elections
The record-breaking inflows coincide with a broader surge in US-based investments in crypto, as American investors account for the bulk of this year’s $29.2 billion inflow. Meanwhile, Germany saw a modest $5.1 million in new investments. This reflects Europe’s more conservative engagement with crypto amid regulatory uncertainties.
While Bitcoin remains the primary beneficiary of these investments, US elections could further intensify volatility in the crypto market this week. Investors are monitoring key battleground states, where recent polls indicate a favorable swing for Republicans. This has raised speculation of a shift in Congress that could bring a friendlier stance on crypto.
Political analysts note that GOP control of Congress might ease regulatory pressures on digital assets. This could enhance investor confidence and attract further inflows into Bitcoin and other cryptocurrencies in the days following the elections. Nevertheless, others like Coinbase CEO Brian Armstrong say a more “pro-crypto Congress” is likely to emerge regardless of the election’s outcome.
The election results will likely signal the short-term direction for crypto investments. A Republican win could boost inflows, potentially sparking a new Bitcoin rally, while a Democratic victory might dampen expectations if stricter regulations are anticipated.
Read More: What is Polymarket? A Guide to The Popular Prediction Market
With election day approaching, crypto markets are expected to stay volatile, as Bitcoin and other digital assets respond to shifts in polling data and policy outlooks.
“Going to be an exciting week ahead, that’s one thing that’s for certain. Be careful on leverage, recommend not touching it at all this week. You’re likely to just get chopped up,” crypto analyst Daan Crypto warned.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Bitcoin
3 US Economic Events to Watch for Crypto Market Impact
Crypto markets are bracing for what is arguably the most volatile week in 2024. Three US macroeconomic data events are on the calendar and have the potential to affect investors’ portfolios significantly.
Meanwhile, Bitcoin (BTC) is trading below $70,000, with prospects for more gains as the fourth quarter (Q4) has historically boded well for the pioneer crypto.
US Elections: Donald Trump vs. Kamala Harris
The US market is approaching the climax of its political showdown between Donald Trump and Kamala Harris, from the Republican and Democratic parties, respectively, on Tuesday, November 5. Based on data on Polymarket, the US elections are only hours away, with Trump narrowly in the lead.
Read More: How Can Blockchain Be Used for Voting in 2024?
Nevertheless, Polymarket’s industry peer in the prediction market, Kalshi, shows an almost similar margin, with Trump leading by 52% against Harris’ 48%. This contrast reflects the differences in these platforms’ user bases. Notwithstanding, analysts anticipate a volatile day for Bitcoin.
The US election results could have significant implications for economic policy, regulatory environments, and investor sentiment. Depending on the winner, policies regarding cryptocurrency might change, potentially affecting Bitcoin price, with the sentiment spilling over to other crypto tokens.
“I’m expecting this week to be a real firecracker, with lots of volatility. The Key day will be Tuesday, as the US election voting comes to a close. If there is no clear winner as the day progresses, it could get quite scary for Bitcoin,” said Mark Cullen, an analyst at AlphaBTC.
Initial Jobless Claims: Labor Market Gauge
Beyond the US elections, crypto markets will also monitor the initial jobless claims on Thursday, November 7. This economic data helps gauge the tightness or softness of the labor market in the US. While the job market has softened, unemployment rates remain low on an absolute basis.
Last week, US citizens filing new applications for unemployment insurance came in at 216,000 from the week ending October 25, down from the previous 228,000. However, there is a consensus forecast of 220,000.
High initial jobless claims in the Thursday report suggest increasing economic hardship and a weakening labor market. This could lead to decreased consumer spending and investment in traditional assets like stocks and bonds. Consequently, some investors may turn to alternative assets like cryptocurrencies as a hedge against economic uncertainty.
FOMC Interest Rate Decision and Jerome Powell Speech
On Thursday, the Federal Open Market Committee (FOMC) will release minutes from its last meeting, followed by comments from Federal Reserve (Fed) Chair Jerome Powell. The Fed operates under a dual mandate: to keep inflation, as measured by the Consumer Price Index (CPI), at 2% annually, and to sustain full employment.
The FOMC’s November meeting is scheduled for next Wednesday and Thursday, with economists speculating on the possibility of another rate cut. At the previous meeting, the Fed reduced interest rates by 50 basis points (0.5%) as US CPI dropped to 2.4%.
Another rate cut may be likely as inflation nears the Fed’s 2% target, while the unemployment rate has risen from 3.7% to 4.1% this year, indicating potential softening in the job market.
Read more: How to Protect Yourself From Inflation Using Cryptocurrency
Recently, Powell said the downside risks to employment have increased, hinting at more rate cuts to support economic growth before the situation worsens. Moreover, the FOMC’s forecast in September suggested that the federal funds rate could fall by another 50 basis points before the end of 2024.
With only November and December meetings remaining, likely, two 25-basis-point cuts are likely underway. Against this backdrop, the CME Fed Watchtool shows a 99.9% probability of a 25 bps rate cut in the Thursday US economic data release.
Meanwhile, Spotonchain anticipates a further upside for Bitcoin after the US elections and FOMC meeting, setting a BTC price target of $100,000 in 2024. The rally, Spotonchain says, will come regardless of who wins the elections.
“The market is entering its most volatile week with the US election and FOMC meeting, but this rally may be here to stay. Historically, the real bull run begins post-election, and we believe that whether Trump or Harris becomes the next president, BTC will continue its upward journey, potentially reaching 100,000 this year,” Spotonchain said.
At the time of writing, BTC is trading for $68,698, signifying a modest 0.34% surge since the Monday session opened.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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