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| By Alex Benfield |
As far as indicators go, the increasing acceptance and integration of Bitcoin (BTC, “A-”) into the traditional finance system is a clear sign that the world of cryptocurrency is not just surviving … but thriving.
In fact, this growth is exemplified by numerous applications for Bitcoin exchange-traded funds by big name TradFi institutions like Fidelity and BlackRock (BLK) this year.
Now political figures are starting to engage in the conversation around Bitcoin, which only adds to this momentum.
A striking instance of this was when Robert F. Kennedy Jr., a Democratic presidential candidate, proposed radical changes to the way we handle Bitcoin.
His propositions include tax-free conversions from Bitcoin to the U.S. dollar, as well as a proposal to back the dollar with Bitcoin — starting with roughly 1% of all U.S. Treasury bills.
Regardless of political affiliation, this kind of discourse in a presidential campaign represents a significant milestone. It signifies an evolving recognition of Bitcoin's potential.
Better yet, RFK Jr. has consistently shown a pro-Bitcoin stance, expressing his dedication to foster a more favorable environment for this digital currency in America.
But the attention given to Bitcoin isn't just limited to politics. Major financial institutions, U.S. regulators and politicians — from state representatives to presidential candidates — are shifting their focus toward Bitcoin and the broader cryptocurrency industry.
With this level of institutional and regulatory attention, it’s unlikely that retail money will continue sitting on the sidelines for long.
Looking forward, this evolving political and regulatory climate paints a bright picture for Bitcoin's future, potentially sparking a new bullish trend. Expect the proverbial bull to wake from its slumber, ready for a vigorous resurgence in the coming months.
You see, the conversation around Bitcoin in the U.S. is poised to shift from speculative uncertainty to strategic acceptance and integration. And with it, the price of Bitcoin is likely to see a significant upswing.
In the meantime, BTC has been trading with some uncharacteristically low volatility lately and is still sitting right around that $30,000 level.
As a whole, the crypto market saw a nice bump in prices after some positive news from the Ripple (XRP, “B-”) versus Securities and Exchange Commission case. Namely, that XRP is not classified as a security.
However, retail money hasn’t flowed back into the market yet.
It appears that there is some shorting going on anytime Bitcoin approaches the $31,000 level. That’s holding back the price of Bitcoin currently, but the bulls will likely eventually gain the upper hand here.
Turning to Ethereum (ETH, “B”), it’s recently been following suit with Bitcoin, though its chart looks slightly more bullish after the recent rally in price.
Currently, ETH is sitting near the $1,900 level and faces tough resistance at the important psychological level of $2,000. When Ethereum is able to finally flip that level back into support, it should make new yearly highs.
There is little resistance between $2,000 and $2,500, so ETH could make a quick run after breaking above its previous yearly high of $2,100.
In a bull market, the slightest hint of good news is enough to send the market rallying. But in a bear market, you get the reverse.
Meanwhile, in a neutral market, the news of the day doesn’t affect prices too significantly.
That appears to be what we have been witnessing over these past few weeks. After the bearish news concerning the SEC lawsuits against Binance and Coinbase, the market dumped but recovered pretty quickly.
Although the recent news about Bitcoin ETF applications and the positive ruling in the Ripple case have both had a bullish impact on the market … it’s nowhere near the euphoric response we’ve come to expect in a bull market.
Given recent events, it appears that we are quickly approaching the next bull market. But we are not quite there yet.
Despite the uptick in prices, 2023 is still proving to be a neutral year in crypto. With positive developments on the regulatory and political fronts — as well as signs of impending institutional adoption — the last shoe to drop is on the retail front.
When retail money makes its way back into the crypto sphere, the bull market will be alive and well.
Best,
Alex
