They project an impressive rise in bitcoin if Donald Trump wins the US elections

They project an impressive rise in bitcoin if Donald Trump wins the US elections

Although there is a tense calm in the cryptocurrencies where for example the bitcoin operates above $71,000 and Ethereum at $3,800, There are signals that anticipate market movements such as the increase in contracts in the futures market and the growing inflows into cryptocurrency ETF funds.

In the case of speculative operations on the Chicago Stock Exchange (CME), according to CoinGlass, more than $5 billion in bitcoin open interest entered since the beginning of the week, raising the total amount to $37.7 billion, which It is a new record for the cryptocurrency.

In this regard, of the 37.7 billion dollars, the CME has the largest bets, with 11 billion, followed by the Binance crypto exchange, with 8 billion dollars. Consequently, the long-short ratio has begun to show a clear bullish bias, experts point out. But on the other hand, according to data from Farside Investors, Bitcoin spot ETFs continue to receive net capital inflows for almost 20 days in a row for almost $4 billion net.

Almost all of the inflows occurred into BlackRock’s IBIT, which added nearly $350 million worth of bitcoin to its holdings, while ARK Invest’s ARKB and 21Shares and Grayscale’s GBTC offset these positive flows to the downside. According to these figures, net inflows for the 11 spot ETFs together stand at around $15.6 billion since their launch last January 11, bringing total assets to $62.3 billion, according to Bloomberg .

Faced with this panorama and with the latest increases in bitcoin, Investors are excited and even some experts now see the price of crypto in six figures in the coming months. This is the case, for example, of Geoffrey Kendrick of Standard Chartered, who recently indicated that he maintained his forecasts for the end of 2024 of $150,000 and $200,000 at the end of 2025. The head of currency and digital asset research at the British bank explains that the possible victory election of donald trump In the presidential elections that the United States will hold in November, it will be an important catalyst for the price of the emblematic cryptocurrency.

“As we get closer to the elections in the United States, I expect it to reach $100,000 and then $150,000 by the end of the year in the event of a Trump victory,” he said. It is worth remembering that Trump has been more favorable to crypto assets than his rival, Joe Biden. Recently, the Democratic administration showed its pragmatism by vetoing the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin (SAB) 121 repeal bill.

SAB 121 is an SEC accounting guideline that directs financial institutions to hold cryptoassets for clients to hold them on their own balance sheets as assets and liabilities. This is contrary to the conventional treatment of assets in custody, which normally do not appear on the balance sheet as they belong to the client.

Critics of this guidance say it makes it too difficult for financial institutions to work with cryptocurrency companies. It should be noted that members of the House of Representatives initially voted to repeal the bill by a wide margin of 228 affirmative votes to 182 negative votes and passed it to the Senate.

The senators echoed the vote of the Lower House and approved the repeal of the project by 60 to 38 votes, and submitted it to the White House. It happens that Biden had previously warned Congress that, if he voted in favor of repealing the controversial SAB, he would use his executive powers to veto the repeal.

Despite everything, Biden is not expected to veto the Financial Innovation and Technology Act for the 21st Century (FIT 21), which has already been approved in the House of Representatives with support from both parties. This text seeks to clarify the jurisdictional limits between the SEC and the Commodity Futures Trading Commission (CFTC) regarding cryptoassets, a source of constant dispute in recent years. According to this text, the SEC will supervise digital assets classified as securities, while the CFTC will regulate commodities and derivatives.

It is worth remembering that a few weeks ago, Michael Novogratz, founding CEO of Galaxy Digital, had already pointed out that this apparent change in the regulators’ position, accentuated by the approval of spot Ethereum ETFs, could take bitcoin to $100,000. end of this year.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts