BTC Bullish: A Duet of Shifting U.S. Political Attitudes and the Development of the Crypto Market
As the world's number one power, the shift in the political attitude of the United States has brought new opportunities to the crypto market and BTC.Source: Coin World
Author: Cyber Melon Farmer
Introduction: With the conclusion of the U.S. elections, influenced by Trump, the Biden administration has also signaled a friendly stance towards the crypto market. As the world's leading power, the shift in U.S. political attitude brings new opportunities for the crypto market and BTC.
According to statistics, as of 2023, there are 420 million people globally using cryptocurrencies. Among them, approximately 27 million people in the U.S. use cryptocurrencies. For Americans, they tend to prefer mainstream cryptocurrencies like BTC and ETH, but in the past, there has been a lack of global consensus on how to protect users' crypto assets and the implementation of related regulatory policies. Considering the crypto market, voters may expect a more open crypto president in this U.S. presidential election.
Competition Between the Incumbent President and Candidates
Former President Trump has unusually expressed optimism about crypto assets and BTC during this presidential campaign. Although he previously publicly expressed disdain for BTC and other cryptocurrencies during his term, he has recently shown a comprehensive embrace of cryptocurrencies. Trump not only announced the issuance of NFTs through his social media platform Truth Social but also publicly committed to accepting cryptocurrencies as campaign donations. All signs indicate that this former president now needs the capital power from the crypto market. In the context of the 2024 BTC bull market, Trump's shift undoubtedly injects a shot of confidence into the crypto market.
Meanwhile, the Biden administration also seems to be gradually adjusting its attitude towards cryptocurrencies.
Although Biden did not explicitly express support for cryptocurrencies during his campaign, in response to Trump's proactive stance and the growing influence of the crypto community, the Biden administration has begun to show closer engagement with the crypto market and has publicly recruited MEME managers. This change in attitude may be aimed at attracting young voters and people of color, or it may reflect a recognition of the potential economic value of cryptocurrencies.
Regardless, once the presidential election is confirmed, the president will fulfill the promises made to voters during the election. Among many hot topics in the election, the crypto market, crypto assets, and BTC have become one of the hot topics in the U.S. elections.
U.S. BTC Mining Companies Become Excellent Investment Targets, BTC Market Value Injected with New Vitality
In this broader context, on one hand, the BTC spot market has shown a positive growth trend.
Coin World reports that recently the MVRV ratio of BTC has remained above 1 in the short term, which is a bullish signal. Additionally, the increase in the number of non-zero BTC addresses, the rise in active addresses, the improvement in on-chain transaction data, and the annual high in overall network computing power all indicate strong momentum in the BTC market.
On the other hand, due to Trump's public support and the Biden administration's change in attitude, the stock prices of publicly listed BTC mining companies also reflect the market's optimistic expectations for the future of cryptocurrencies. As BTC prices fluctuate and market sentiment changes, mining companies, as an important part of the cryptocurrency industry chain, often show a positive correlation with BTC prices. Investor optimism about the crypto market directly drives the rise of related stocks.
In fact, since the beginning of 2024, the movements of listed mining companies have become the focus of capital attention. Not long ago, former U.S. President Donald Trump publicly supported Bitcoin mining activities, further boosting market bullish sentiment towards mining companies. According to CompaniesMarketCap data, as of June 18, the total market capitalization of 21 publicly listed mining companies in the U.S. has risen to $28.8 billion.
From a macroeconomic perspective, the global economic uncertainty has increased the market's demand for cryptocurrencies as a safe haven. Influenced by monetary policy and inflation expectations, BTC's decentralized asset attributes have attracted more investor attention.
Moreover, the Bitcoin halving event, which occurs every four years, is also reducing BTC's inflation. Starting this year, the reward for each block has decreased from 6.25 BTC to 3.125 BTC, which will further enhance the potential for BTC's value appreciation.
Under the influence of the U.S. political attitude, favorable news related to BTC has emerged frequently over the past six months.
Riding this wave, the cryptocurrency market is standing at a new starting point. With the gradual improvement of the policy environment and the continuous enhancement of market awareness, the crypto market, under the banner of BTC, will usher in broader development space.
Let us wait and see how cryptocurrencies will write their own chapter in the new political and economic landscape.
