Why 2024 Could Be the Year of the Crypto Bull: Top 5 Reasons

The recent approval of Ethereum ETFs is sending ripples through the cryptocurrency world, highlighting the significant role politics plays in this dynamic market.

In a series of recent X posts, crypto analyst Miles Deutscher has pointed to several key developments over the past week that suggest a major shift is underway. Deutscher predicts that 2024 could be a pivotal year for crypto, driven by substantial political and regulatory changes. Here’s why:

1. Trump's Pro-Crypto Stance: A Game Changer?

Former President Trump’s enthusiastic endorsement of the cryptocurrency sector on social media adds a fascinating twist to the political landscape. He has promised to foster a crypto-friendly environment if re-elected, emphasizing the need for U.S. leadership in the digital currency space. Trump's criticism of President Biden’s policies underscores the political tension surrounding crypto regulation.

2. Ethereum ETFs: Democratizing Crypto Investment

The unexpected approval of Ethereum ETFs is a landmark moment, making it easier for everyday investors to enter the crypto market. This development could significantly alter market dynamics by broadening access and potentially driving substantial investment in the coming year.

3. FIT21 Bill: Bringing Regulatory Clarity

The recent passage of the FIT21 bill in the U.S. House of Representatives marks a vital step towards clearer cryptocurrency regulations. This legislative milestone addresses concerns about regulatory ambiguity, paving the way for a more structured and predictable market environment.

4. Biden’s Evolving Crypto Stance

The Biden administration’s recent actions indicate a notable shift in its approach to cryptocurrencies. The approval of Ethereum ETFs by the SEC and the passage of the FIT21 Act in the House signal a more favorable regulatory attitude. These moves seem designed to appeal to pro-crypto voters ahead of upcoming elections.

5. Rising Anti-CBDC Sentiment

The approval of an anti-Central Bank Digital Currency (CBDC) bill reflects growing unease about government-controlled digital currencies. This sentiment underscores a preference for decentralized alternatives like Bitcoin and Ethereum, which are perceived as being free from government influence.

The Political Bull Run

Deutscher suggests that these events could trigger a “political bull run” in 2024. By openly supporting cryptocurrencies, both Trump and Biden could rally a substantial voter base, indicating broad acceptance of crypto on the political stage.

However, not everyone is optimistic about political involvement in crypto. Bitcoin advocate Samson Mow warns that politicians’ support could be detrimental to Bitcoin. He argues that without adhering to Bitcoin’s core principles, issues similar to the collapses of FTX, Luna, and Genesis could recur, leading to significant financial losses.

“I’m not bullish on politicians becoming pro ‘crypto.’ It may feel nice given the prior hostile anti-crypto stances, but long term it’s bad for Bitcoin. Without a strong Bitcoin ethos, this shift only paves the way for the next FTX/Luna/Genesis, & once again, we will pay for it,” Mow cautions.

Your Take: Bullish or Bearish on Crypto in 2024?

With these developments in mind, where do you stand? Do you see 2024 as the year of the crypto bull, or do you share Samson Mow’s skepticism? Let us know your thoughts.