The cryptocurrency market saw a positive start to the final week of July, with Bitcoin rising by 2% to $69,640.00 and Ether increasing by 3% to $3,382.15, according to Coin Metrics. This boost in prices comes as investors are returning to the market following a week where Bitcoin gained 1% and Ether dropped 7%.
Traders are keeping a close eye on central bank meetings scheduled for this week, including the Federal Reserve, Bank of Japan, and the Bank of England. Federal Reserve Chair Jerome Powell’s comments are of particular interest, with hopes that he will confirm an interest rate cut in September. These meetings will play a significant role in shaping market sentiment and influencing cryptocurrency prices in the coming days.
Former President Donald Trump made headlines over the weekend with his speech at the Bitcoin Conference in Nashville. Targeting Democratic lawmakers like Sen. Elizabeth Warren and SEC Chair Gary Gensler, Trump criticized the lack of clear regulations for the cryptocurrency industry. He proposed the creation of a National Strategic Bitcoin Reserve, vowing to keep 100% of the U.S. government’s bitcoin holdings and replace Gensler if elected.
In response to Trump’s speech, Republican Senator Cynthia Lummis announced plans to introduce a bill for a bitcoin reserve and purchase program. The bill aims to acquire a total stake of approximately 5% of the total bitcoin supply through a 1-million-unit purchase program over time. While the price of bitcoin initially dipped during Trump’s speech, it quickly recovered, signaling resilience in the market.
Economist Noelle Acheson expressed doubts about the immediate impact of Trump’s comments and Lummis’ bill on long-term investors. She highlighted Vice President Kamala Harris’ team reaching out to crypto industry representatives as a potentially more impactful development. This shift in policy, especially if it leads to distancing from Senator Warren and SEC Chair Gensler, could have significant implications for the industry.
Cryptocurrency has become a focal point in the upcoming U.S. presidential election, with the Trump team aiming to leverage the growing crypto vote. Despite key Democrats’ skepticism towards the industry, there is bipartisan support for cryptocurrency in Congress. The evolving landscape of regulations and policies surrounding cryptocurrency will continue to impact market dynamics and investor sentiment in the months ahead.
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