The "coerced" cryptocurrency market: The U.S. campaign raised $169 million in crypto, with no mention of it

Source: CoinWorld

Author: Cyber Melon Farmer

Introduction: The cryptocurrency market has cumulatively invested $169 million in the U.S. elections, but today's highly anticipated first presidential debate in the U.S. made no mention of the crypto market. After the debate, Trump received $1 million in ETH, and the related MEME dropped by 7%. Where did the money go?

Yesterday, Melon Farmer published an article titled "The Narrative Before the U.S. Election: Cryptocurrencies Standing on the Dollar." The article pointed out that under the current situation of interest rate cuts and relaxed market liquidity in the U.S., crypto market whales are continuously selling large assets, with a total of $13.1 billion worth of assets thrown onto the market without buyers, leading to market fluctuations and price declines. However, from the perspective of the development of the crypto market in 2024, market enthusiasm seems to be negatively correlated with K-line values. Despite various favorable conditions, the market continues to fluctuate; BTC attempted to break through the $70,000 mark but fell back to the $60,000 level, causing panic in the market.

At the end of the article, Melon Farmer proposed a hypothesis. Considering the news that the U.S. may cut interest rates between July and November, a rate cut before the election could channel liquidity into the hands of oligarchs, promoting market prosperity through their influence. Meanwhile, the massive sell-off of crypto assets creates market panic, allowing oligarchs and whales to enter the market at low prices amid continuous fluctuations. After the election, the U.S. may announce interest rate hikes to reduce market liquidity, reclaim funds while tightening monetary policy, and boost the prices of the dollar and crypto assets. At that time, the crypto-related organizations that supported the presidential campaign would also receive better returns.

Of course, all of this is just speculation.

The "Hijacked" Crypto Market: $169 Million Invested, Not a Word Mentioned

In Melon Farmer's view, the past development of the crypto market has been wild and chaotic, always feeling neglected. It has been recognized by some small countries and islands under the pretext of money laundering or various gray transactions, but mainstream financial markets have never taken the crypto market seriously.

This situation is expected to change in 2024, but it seems that the current regulation is not as mutually beneficial as one might think with the government system.

It is reported that crypto giants invested $169 million, influencing over 20 congressional candidates to win in the primaries, while the crypto industry spent millions on advertisements without mentioning crypto assets.

This bold text is just a piece of breaking news. Will anyone see this and wonder why?

In response, the giant organizations stated: "They say tens of millions of American voters want the government to accept and establish tailored rules for digital assets." Is that all?

In the documents submitted by the publicly traded company Coinbase to the U.S. Securities and Exchange Commission, it was indeed disclosed that "in December 2023, we, along with many other cryptocurrency and blockchain market participants, supported the establishment of the Fairshake Political Action Committee to support political candidates in the 2024 U.S. presidential election who advocate for cryptocurrency and blockchain innovation as well as responsible regulation." Who are the "political candidates who support cryptocurrency and blockchain innovation and responsible regulation"? Everyone must have an answer in mind.

There is still a small detail here: companies investing in political candidates are more or less facing enforcement disputes with federal regulatory agencies. Under these conditions, three companies recently made a round of donations—each contributing $25 million.

Intriguing, isn't it?

Of course, we cannot be biased; in addition to supporting political candidates who back the crypto market, the giants also supported candidates who do not. With multiple forces pushing, both sides have seen MEME activity. Meanwhile, with the simultaneous push from both parties (Democrats and Republicans), it is likely that the well-known FIT21 crypto regulation bill came to be.

After the presidential campaign ends, both sides raise funds, and MEME plummets.

$169 million spent, BTC spot ETF approved, ETH spot ETF approved, FIT21 bill passed, yet K-line declines instead of rising. Ah, intriguing, endlessly thought-provoking, stirring emotions, and grand in scale.

In Melon Farmer's mind, human nature is driven by profit, the underlying logic of society is value exchange, and the premise of cooperation is mutual benefit. So, where did the $169 million go? What do capitalists seek?

If yesterday was merely speculation, today’s report gives Melon Farmer a bit more certainty.

Perhaps part of it is that the world's strongest trader, the U.S. president, looks down on making statements about such a minor market as crypto, but another part is that the oligarchs of the crypto market do not want to expose themselves too much.

Looking at today’s BTC spot value, on June 27 at 9 PM Eastern Time (9 AM Beijing Time), before the first debate began, BTC's price was pushed up, reaching a peak of $62,225.31 just as the debate officially started, and then it began to decline without looking back even before the debate ended.

It’s worth noting that the "political candidates who support cryptocurrency and blockchain innovation and responsible regulation" you support have a winning probability of 67%.

Not rising? Instead, it fell?

In contrast, the related MEME of the two debaters plummeted. I can understand DoBen/SOL, but TRUMP/USDT also fell? Did it start to drop right after the speech? Take a good look at this chart; let’s not even talk about the 67% winning probability—it’s really inseparable, as this 67% determines the chair of the world's strongest nation.

After the debate, at 2:20 PM, Kraken co-founder Jesse Powell stated on his social platform that he personally donated $1 million to Trump's campaign, primarily in ETH. He also attached a photo of the two of them on Twitter. (Interested friends can find it themselves; I'm lazy.)

A 67% winning probability plus a $1 million donation resulted in a 7.3% drop. Melon Farmer wants to ask, where is the money? Where did the money go?

If money is not spent now, perhaps it is invested in the future.

From the silence of crypto giants and the lack of mention of crypto in the first debate, Melon Farmer boldly predicts that subsequent debates may not feature crypto-related topics either.

Since it needs to be hidden, let it be buried!

With the market continuously under pressure, the real celebration for the crypto market will only come after the election reaches its freezing point.