Technology
Monday, July 29th, 2024 1:02 pm EDT
Key Points
- Cryptocurrencies, including Bitcoin and Ether, saw an increase at the start of the final week of July, with investors anticipating significant central bank meetings, particularly focusing on potential interest rate cuts by the Federal Reserve.
- Former President Donald Trump criticized Democratic lawmakers and SEC Chair Gary Gensler at the Bitcoin Conference, proposing a National Strategic Bitcoin Reserve and pledging to replace Gensler, while Senator Cynthia Lummis announced plans for a bill to establish a significant bitcoin reserve for the U.S.
- Vice President Kamala Harris’ team has begun reaching out to crypto industry representatives to improve relations between the Democratic Party and the crypto sector, signaling a potential shift in policy and increasing the chances of SEC Chair Gensler being replaced, as the crypto industry gains bipartisan support in Congress.
At the beginning of the final week of July, cryptocurrencies saw an upward trend as traders processed recent political events and anticipated upcoming central bank meetings. Bitcoin rose by 2% to $69,640, while Ether increased by 3% to $3,382.15. This resurgence followed a period where Bitcoin remained flat and Ether experienced an 8% decline. Investors are closely monitoring meetings of the Federal Reserve, the Bank of Japan, and the Bank of England, with particular attention on Fed Chair Jerome Powell, whose comments might signal an interest rate cut in September.
In addition to market movements, political developments also influenced the crypto landscape. Former President Donald Trump gave a speech at the Bitcoin Conference in Nashville, criticizing Democratic lawmakers, SEC Chair Gary Gensler, and the Biden administration for their handling of the cryptocurrency industry. Trump proposed maintaining the U.S. government’s current bitcoin holdings as a National Strategic Bitcoin Reserve and announced plans to replace Gensler if he were re-elected.
On the legislative front, Senator Cynthia Lummis of Wyoming revealed plans to introduce a bill to establish a bitcoin reserve and initiate a purchase program to acquire a significant portion of the total bitcoin supply. These political moves generated immediate market reactions, with bitcoin briefly dipping before recovering.
Economist Noelle Acheson noted that while Trump’s comments and Lummis’ bill might face significant challenges in Congress, more impactful could be Vice President Kamala Harris’ outreach to the crypto industry. This suggests a potential shift in policy, which might include replacing SEC Chair Gensler. The Financial Times reported that Harris’ advisors are engaging with crypto companies to improve relations between the Democratic Party and the sector, aiming to leverage the growing importance of the crypto vote in the upcoming presidential election.
The bipartisan support for crypto in Congress is evident, with a letter from over a dozen House Democrats and several congressional candidates urging the Democratic National Committee to adopt a forward-looking approach to crypto, including appointing an SEC chair supportive of digital asset innovation. This increased political interest underscores the growing significance of the crypto industry in U.S. politics.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/29/crypto-market-today.html
