Markets

Battle lines drawn: Trump defends crypto as Biden seeks to regulate the industry

Published

9 months ago

9 May, 2024

Battle lines drawn: Trump defends crypto as Biden seeks to regulate the industry

(Kitco News) – The 2024 presidential race is starting to heat up, with President Joe Biden and former President Donald Trump increasing their public appearances as they try to appeal to undecided voters – and encryption is becoming a major campaign issue.

On the pro-crypto side is Trump, who has lamented the fact that crypto companies are fleeing the US market for more welcoming jurisdictions, which he sees as a long-term detriment.

“Crypto is leaving the US because of hostility towards crypto,” Trump he said at an event he hosted at his Florida home on Wednesday for a group of non-fungible token (NFT) enthusiasts. “Let’s stop this because I don’t want this – if we want to accept this, we have to let them stay here.”

He took the opportunity to present himself as pro-crypto, in opposition to the US Securities and Exchange Commission (SEC) and Democrats, whom he painted as decidedly anti-crypto.

“Gensler is totally against it. The Democrats are totally against it, [but] I’m okay with that; I want to make sure it’s good and solid and everything, but I’m fine with it,” Trump said.

He has also been credited with the revival of the NFT market, claiming that his Mugshot NFTs and other collections “made NFTs hot again” at a time when the NFT market was stagnant.

Trump also attacked the meme coin Jeo Boden (BODEN), linked to Joe Biden, which currently has a market value of $217 million after reaching a high of $655 million on April 10.

“That’s a lot of money for a coin; I don’t like this investment,” he he said.

On the opposite side of the spectrum is President Biden, who has specifically targeted the crypto industry in several proposals, including reintroducing in March a controversial proposal to impose a 30% excise tax on the cost of electricity used to mine Bitcoin. .

The Digital Asset Mining Energy (DAME) tax has been widely criticized by industry professionals, who say it could push US-based Bitcoin miners such as RIOT Platforms and Marathon Digital Holdings into more welcoming jurisdictions, as alluded to in comments made by Trump. .

“A proposed 30% punitive tax on digital asset mining would destroy any foothold the industry has in America,” tweeted Wyoming Republican Senator Cynthia Lummis. “I will not let President Biden tax the digital asset industry out of existence.”

Independent presidential candidate Robert F. Kennedy Jr. also resisted the proposal, tweeting, “Cryptocurrencies, led by bitcoin, along with other cryptographic technologies, are an important driver of innovation. It is a mistake for the US government to undermine industry and drive innovation elsewhere. Biden’s proposed 30% tax on cryptocurrency mining is a bad idea.”

“Just as a biodiverse ecosystem is a resilient ecosystem, our economy will be more resilient if it has a diverse ecology of currencies, not just a single, centrally controlled one,” he said. added. “We are seeing today how fragile our excessively centralized system is.”

Biden further showed which side of the crypto camp he is on, promising to veto HJ Res. 109, a resolution passed by the US House of Representatives on Wednesday that rejects SEC cryptocurrency accounting guidance that the industry says has deterred banks of dealing with cryptocurrency clients.

SEC Staff Accounting Bulletin No. 121 – also known as SAB 121 – was designed to help clarify the accounting treatment for crypto assets by directing banks that hold a customer’s digital tokens to do so on their own balance sheet, potentially incurring huge capital expenditures.

A review of the bulletin by the Government Accountability Office (GAO) determined that the agency should have treated it as a rule, with full public comment and submission to Congress.

“SAB 121 was issued in response to proven technological, legal and regulatory risks that have caused substantial losses to consumers,” Biden said in a statement. declarationadding that it “strongly opposes” stopping the SEC’s work on this matter.

“By virtue of invoking the Congressional Review Act, it could also inappropriately restrict the SEC’s ability to ensure appropriate protections and address future issues related to cryptoassets, including financial stability,” the statement said. “Limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for cryptoassets would introduce substantial financial instability and uncertainty into the market. If the President were presented with HJ Res. 109, he would veto it.”

Despite the statement, the House voted strongly in favor of the resolution, with 21 Democrats joining Republicans in approving the measure.

With so much focus on the crypto industry in Congress and the SEC, the topic is turning into an influential platform in the upcoming elections amid growing awareness of digital assets following the launch of several spot Bitcoin exchange-traded funds (ETFs). In the USA

According to a Tuesday note from Geoffrey Kendrick, digital asset researcher at Standard Chartered, a Trump administration would be more welcoming and less strict on Bitcoin and crypto than another Biden term would be.

“While Biden administration officials have taken a relatively tough stance on digital assets, Trump said in a March interview that, if elected, he would not crack down on Bitcoin or other digital assets,” Kendrick wrote.

He added that Trump would also support a more positive regulatory environment and said the risk of US fiscal dominance is growing with the Fed’s monetization of government debt, which supports alternative assets like crypto.

“We believe a second Trump administration would be broadly positive through a more favorable regulatory environment,” the report said. “In a scenario of US fiscal dominance, we believe Bitcoin would provide a good hedge against de-dollarization and declining confidence in the US Treasury market.”

Kendrick added that U.S. fiscal dominance would likely have three effects on the U.S. Treasury curve: “a steeper nominal 2-year/10-year curve, a larger increase in break-even points than in real yields, and an increase in the premium deadline”.

He noted that the price of Bitcoin has a positive correlation with all three of these potential developments.

Kendrick also warned that if Trump won the election, a second administration could accelerate the withdrawal of official foreign buyers from the US Treasury due to fiscal concerns, highlighting that in his first term, the average annual net sale of US government debt was 207 billion dollars per year. year versus just $55 billion under Biden’s presidency.

“In addition to the passive boost to BTC due to dedollarization, we would expect a second Trump administration to actively support BTC (and digital assets more broadly) through looser regulation and the approval of US spot ETFs,” he said. he.

The report closed by reiterating Standard Chartered’s year-end Bitcoin forecast, with the bank expecting a price of $150,000 in 2024 and $200,000 by the end of 2025, and noting that import tariffs under Trump would lead to “ several large reserve managers buying BTC in 2025.”

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a request to carry out any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.

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We are the editorial team of FinCrypt, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on FinCrypt, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

6 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

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Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

6 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

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Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

6 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

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Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

6 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week