Bitcoin to be ‘political imperative,’ owning none ‘a liability’

As an analyst with over two decades of experience in the financial industry, I have witnessed numerous market shifts and political developments that have significantly impacted investment strategies. Based on my observations and the insights shared by NYDIG’s global head of research, Greg Cipolaro, I believe there is a compelling case for investors to reconsider their stance on Bitcoin.

According to the New York Digital Investment Group (NYDIG), Bitcoin is expected to gain significant political significance in the wake of Donald Trump and the Republican Party’s recent election victories. Given this development, investors who haven’t yet invested in Bitcoin may find it hard to overlook it anymore.

Many investors haven’t yet invested in Bitcoin, but rather than none, it’s often zero. According to NYDIG’s global head of research, Greg Cipolaro, there’s no more room for excuses now.

“It is now becoming a political imperative.”

As an analyst, I’m expressing that holding this particular asset could turn into a disadvantage in the long run. Those investors who might have previously disregarded or underestimated the value of this asset may find themselves regretting their decision if they continue to overlook it, potentially risking their financial wellbeing.

This year, Bitcoin (BTC) has experienced a surge of approximately 84%, reaching almost $82,000, primarily due to Donald Trump’s victory in the U.S. presidency, which seems to have positively impacted its value.

Bitcoin to be ‘political imperative,’ owning none ‘a liability’ — NYDIG

In simpler terms, it’s expected that the Republican party, which has shown support for bills favored by the cryptocurrency sector, is likely to maintain control of both the Senate and the House of Representatives, having taken over a few seats previously held by the Democrats.

According to Cipolaro, the cryptocurrency sector is positioning itself to have an influential role in top-tier government circles, which may ultimately result in increased acceptance of cryptocurrencies and blockchain technology within traditional financial systems.

2025 is expected to bring about new leaders in most significant agencies and departments, potentially paving the way for genuine opportunities for cryptocurrency-friendly laws and regulations, as he noted.

Trump has pledged to dismiss Gary Gensler, current Chairman of the Securities and Exchange Commission (SEC), on his first day in office, if re-elected. It’s also reported that a top contender for the SEC chair position could be the legal head of Robinhood Markets.

Under the leadership of Gensler, the Securities and Exchange Commission (SEC) has brought forward many legal actions against cryptocurrency firms. However, according to Cipolaro’s speculation, these lawsuits could see significant reduction in the future.

After the elections, a shift in leadership might bring about a more lenient approach towards regulations. This could mean that the SEC may negotiate settlements with these businesses, enabling them to function within a clearer regulatory environment. In some instances, they might even abandon lawsuits deemed not beneficial for the public good.

He added that the SEC may also choose to abandon any potential enforcement action signaled through Wells notices to Robinhood, Crypto.com, Consensys, Uniswap, and Immutable.

According to Cipolaro’s statement, it’s anticipated that fresh leadership will emerge in organizations such as the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Treasury, and even the Attorney General’s office, who are likely to adopt a more favorable attitude towards cryptocurrencies.

According to Cipolaro, the new regulations might adopt a friendlier approach towards banks collaborating with cryptocurrency, possibly offering support for banks to offer custody services for digital assets such as stablecoins.

2024-11-11 09:24

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