U.S. Presidential Candidates Highlight Cryptocurrency Plans

Week of July 30 - August 5, 2024

Donald Trump spoke at the Bitcoin 2024 Conference, expressing his intent for the U.S. to become the cryptocurrency of the capital industry. He proposed creating a Bitcoin reserve and vowed not to sell any Bitcoin currently held, positioning himself as the preferred candidate for cryptocurrency enthusiasts and Bitcoin supporters.

U.S. Senator Cynthia Lummis also announced at the same conference about her plan to introduce legislation for the U.S. government to purchase 1 million Bitcoin—about 5% of the total supply—and hold them for at least 20 years. This initiative aims to reduce the national debt and would take approximately five years to implement if passed.

An advisor to U.S. Vice President Kamala Harris has reached out to leading cryptocurrency companies, such as leading cryptocurrency exchange Coinbase, stablecoin company Circle and blockchain payments firm Ripple Labs, signaling a possible policy shift towards supporting the domestic cryptocurrency industry.

The State of Michigan Retirement System reported to the U.S. SEC that it has invested in 110,000 shares of the ARK 21Shares Bitcoin ETF (ARKB), becoming the third US state to allocate pension fund assets into a Spot Bitcoin ETF, following Wisconsin and Jersey City.

VanEck predicts that Bitcoin's price could surge up to 2.9 million USD, with a market cap of 61 trillion USD by the year 2050, if it becomes a reserve asset for international trade, with some central banks holding 2.5% of assets in Bitcoin and using it for 10% of international trade settlements.

The U.S. SEC has approved Grayscale's new Spot Bitcoin ETF, the Grayscale Bitcoin Mini Trust (BTC), with a management fee of 0.15%, significantly 10x lower than the existing Grayscale Bitcoin Trust (GBTC), which charges an annual fee equal to 1.5% of assets under management (AUM).

Blackrock revealed that, besides Bitcoin and Ethereum, client interest in other cryptocurrencies remains low, and it doesn't foresee launching spot ETFs for other cryptocurrencies soon. In contrast, Franklin Templeton remains optimistic about spot ETFs for other cryptocurrencies like Solana (SOL), citing widespread use and robust technology. Franklin Templeton had previously launched the Franklin Ethereum ETF (EZET) listed on the CBOE BZX exchange.

Bitstamp announced it would distribute Bitcoin to Mt. Gox creditors starting July 25, after receiving 5,106 BTC from the Mt. Gox trustee.

Technical Graph Analysis

Bitcoin (BTC)

Bitcoin (BTC) has experienced high volatility, testing the 70,000 USD level before facing selling pressure. This week, it could retest significant resistance; a breakthrough could signal the start of a bull market. The support level is at 63,000 USD, a potential entry point, with a medium-term target at the previous high of 74,000 USD.

Support: 2,280,000 THB / 63,000 USD
Resistance: 2,600,000 THB / 70,000 USD

Ethereum (ETH)

Ethereum (ETH) faces outflows from Grayscale Ethereum Trust (ETHE) holders but continues to see inflows into other Spot Ethereum ETFs, supporting a positive price trend. The week's support is unlikely to drop below 2,800 USD, with resistance at 3,900 USD. A break above this level could lead to a broader bullish trend.

Support: 104,000 THB / 2,800 USD
Resistance: 140,000 THB / 3,900 USD

Book of Meme (BOME)

Book of Meme (BOME) gained 20.29% last week, approaching the first resistance at 0.0105 USD. Breaking this level could see a profit-taking target of 0.0125 USD, but the price should not fall below 0.009737 USD to maintain the upward trend.
Support: 0.28 THB / 0.009737 USD
Resistance: 0.46 THB / 0.0125 USD

1000Sats (SATS)

1000Sats (SATS) returned 17.67% last week and is showing signs of a bullish recovery. The strategy is to buy on dips above 0.0002485 USD, with a profit target at the first resistance of 0.000377 USD.
Support: 0.009 THB / 0.0002485 USD
Resistance: 0.0135 THB / 0.000377 USD

Investment Trends

The cryptocurrency-friendly policies discussed by Donald Trump and other politicians have impacted the market, suggesting a long-term positive outlook. Even Kamala Harris, who was previously not aligned with pro-cryptocurrency stances, is reconsidering her policies, indicating bipartisan support for the sector.

The Federal Reserve's upcoming policy meeting on July 31 is expected to keep interest rates unchanged, but any hints at future rate cuts could positively affect the cryptocurrency market.

The Spot Ethereum ETF's initial trading week saw expected outflows from the Grayscale Ethereum Trust (ETHE). However, Grayscale's new lower-fee Bitcoin Mini Trust, and potential fund transfers, might moderate Ethereum's price, which is also being supported by positive inflows from other funds.

This week could mark a turning point for the cryptocurrency market, potentially entering a bullish phase if Bitcoin breaks above the 74,000 USD resistance level. This could be further supported by favorable crypto policies suggested by the U.S. presidential candidates.

The recommended investment strategy is to gradually accumulate Bitcoin and Ethereum, which are likely to outperform the broader market, followed by identifying high-growth potential altcoins. Price dips near support levels should be seen as buying opportunities.

References

Disclaimers

Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
Past returns or performance of digital assets do not guarantee future returns or performance.

Remark: views, information, knowledge, and opinions are considered as content that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither the email nor the content presented constitute investment advice.

Topics: Beginner Crypto Weekly

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