Dehydrated topic: Party struggle opens the way for a bull market in cryptocurrencies

1. Holger Zschaepitz (@Schuldensuehener): BTC and Trump’s attitude

Looks like #Bitcoin is a potential beneficiary of Trump. Trump has been very pro-crypto in recent months.

(Translation: It seems that BTC has benefited greatly from Trump . In recent months, Trump has been very supportive of the crypto industry)

2.0xbit (@0xbit90536646): The dispute between the two parties is the dispute between mainstream coins and MEME coins

The main theme of the crypto in the second half of the year is:

The competition between the grassroots people represented by Trump (MEME) and Biden (mainstream currency) supported by Wall Street!

In the United States, politics has always served interest groups. Wall Street controls #Bitcoin and #ETH through ETFs, and controls most mainstream currencies and even #AI ​​through investment.

Musk and Trump are both outliers. They use MEME to win over the vast majority of grassroots people.

3.BruceJ (@BTCBruce1): Crypto bill FIT21 receives bipartisan support in the United States

Read a newspaper: Today, the US "Encryption Act FIT21" was passed in the House of Representatives, 278 votes to 136

The FIT21 bill has received bipartisan support in the United States, reflecting Congress’s emphasis on establishing a stable and innovative regulatory environment for digital assets. However, the final passage of the bill still needs to be approved by the Senate and signed by the President.

The FIT21 Act, or the 21st Century Financial Innovation and Technology Act, is an important piece of legislation drafted by the United States that aims to provide a clear regulatory framework for digital assets. The following are the main contents and objectives of the Act:

1. The role of the regulatory body is clear:

Commodity Futures Trading Commission (CFTC)

The bill proposes to establish the CFTC as the primary crypto asset regulator, responsible for overseeing crypto-commodities and related commodities.

Securities and Exchange Commission (SEC)

The bill also clarifies the SEC’s regulatory responsibilities for certain digital assets, particularly those that are deemed to be securities.

2. Consumer Protection:

The bill contains provisions to protect consumers from the risks of the crypto asset market. These provisions are intended to ensure that consumers’ interests are protected in the event of market volatility or company bankruptcy. (The word “consumer” here is quite interesting to me)

3. Promote innovation:

The bill aims to encourage innovation and development in the digital asset market by reducing regulatory uncertainty and providing clear regulatory guidance. This will help the United States remain competitive in the global digital asset market.

4. Market structure adjustment:

The FIT21 Act proposes a series of new registration categories for digital asset intermediaries. These new categories will be incorporated into the existing securities and commodity derivatives legal framework to better suit the needs of the digital asset market.

Overall, the FIT21 Act aims to stabilize and promote the development of the U.S. digital asset market by providing a clear regulatory framework, strengthening consumer protection, and promoting market innovation.

Coingecko: The most popular MEME tokens are PONKE, MAGA VP, and MUMU THE BULL

Currently, the MEME tokens with the highest market value on Solana are WIF, BONK, BOME, POPCAT, and MEW. From the trend of attention, the tokens with the highest attention are: PONKE, MAGA VP, and MUMU THE BULL.

According to Coinmarketcap data, the top five currencies in terms of 24-hour popularity are: PONKE, TOSHI, GALA, NOT, and MVP. According to Coingecko data, in the crypto market, the top five sectors with the highest growth are: CMC community voting winners, Toncoin ecosystem, Moonriver ecosystem, Masternodes, and Berachain ecosystem.

Hot Spot Focus——Is the Ethereum meme popular again?

Trump became the first former president in U.S. history to be convicted. As an "index" of the crypto community's attention to the topic, Trump-related concept coins also fluctuated sharply. Interestingly, Trump-related news has dominated the crypto community for nearly a month, and related meme coins have almost covered most of the popular chains, and the survival time of "Trump" on each chain varies. After a month, the only ecosystems with related memes left are Ethereum and Solana, and their respective "meme survival rules" are just the opposite.

The meme coin MAGA Memecoin ($TRUMP) on Ethereum appeared on August 23, 2023. After more than four months of brewing, it started in January this year, rising from $0.31 to the current $14.2, an increase of hundreds of times. After the news of Trump's sentencing was suddenly announced, $TRUMP on Ethereum reacted very sensitively. It first fell by nearly 30% in a short period of time, and then quickly rose by more than 75% to recover the decline and returned to a high of $14. MAGA, a popular Trump concept coin on Solana in the past two days, is very "fresh". It was launched a week ago and "completed its life" in 48 hours. After the news this morning, MAGA doubled immediately, and then quickly retreated sharply.

On May 28, a meme coin pepe in a memes world (PEW) appeared on the Ethereum ecosystem. After it went online, it rose all the way and gained a 180-fold increase in two hours. Caitlyn Jenner, the protagonist of the recently highly discussed "celebrity coin", also released a token of the same name on Ethereum yesterday after her team released the token on the Solana ecosystem meme release platform pump.fun. However, JENNER does not seem to have found the "meme survival law" of Ethereum and is now on the road to zero.

Meme culture is a "quasi-luxury" for public chains. It is not just simple entertainment, but a symbol of the prosperity and development of the public chain ecosystem. Meme culture can continuously bring new vitality and stories to the public chain, which is crucial to maintaining the attractiveness and activity of the public chain. Recently, the popularity of celebrity meme coins such as JENNER and MOTHER has once again pushed Pump.fun on Solana to the center of community attention. It seems that the meme season can lead a wave of "Solana Summer", but judging from the trend of similar meme coins, the speed of new meme outbreaks and vitality, despite the fierce momentum of Solana and Base, meme investors will not ignore their love for Ethereum.

LBank: 41% of U.S. voters are concerned about Bitcoin and cryptocurrencies

With the passage of BTCETF at the beginning of this year and the approaching US election, the impact of cryptocurrency on US political volatility is gradually increasing. With a series of recent operations by Trump, although cryptocurrency is an emerging and controversial field, it is now becoming an important bargaining chip for gaining votes and financial support in US political elections.

1. Ethereum spot ETF approved for political reasons

At the Consensus2024 consensus conference, ARK Invest CEO and Chief Investment Officer Cathie Wood (female stock god) said: Because cryptocurrency is an election issue, the Ethereum spot ETF application was approved.

She said in an interview: "The interpretation at the time was that it would not be approved, absolutely not approved. If it was approved in the usual way, we would be questioned by the US SEC. But before that, no one had received such an inquiry."Cathie Wood also said that the mood in the House of Representatives surrounding the Financial Innovation and Technology Act of the 21st Century (FIT21), which was passed last week with bipartisan support, is constantly changing, indicating that this may be an election year issue.

During the period, Brian Nelson, Deputy Secretary of the U.S. Treasury Department and the Office of Terrorism and Financial Intelligence, also stated that FinCEN's proposal in 2023 to require cryptocurrency companies to report transactions involving mixing is intended to increase transparency rather than ban mixers.

Nelson said he sympathized with cryptocurrency users’ desire for financial privacy but suggested the industry and the Treasury Department should work together to find ways to enhance privacy while avoiding terrorist financing.

Meanwhile, NYSE President Lynn Martin and Bullish CEO Tom Farley discussed cryptocurrency regulation, changing U.S. politics, and the limitations and opportunities of blockchain technology to improve traditional markets. Among them, Farley highlighted the sudden shift in U.S. political attitudes toward cryptocurrencies, including the removal of the anti-crypto chairman of the Federal Deposit Insurance Corporation (FDIC), the passage of the 21st Century Financial Innovation and Technology Act (FIT21) in the House of Representatives, and Republican presidential candidate Donald Trump doubling down on his support for cryptocurrencies in a series of rapidly evolving events.

“Whether it’s Trump, Biden or Michelle Obama (who will be president), you’re going to see progress in 2024 and 2025,” he added.

Earlier on May 28, former CFTC Chairman Christopher Giancarlo also said in an exclusive interview with Forbes: The dam of the United States resisting cryptocurrency innovation is about to collapse, and cryptocurrency will eventually make a comeback in the United States.

2. Two-fifths of potential voters are concerned about cryptocurrencies

According to sosovalue data, as of May 29, the total net asset value of the Bitcoin spot ETF was US$57.683 billion, and the ETF net asset ratio (market value as a percentage of the total market value of Bitcoin) was 4.34%. The historical cumulative net inflow has reached US$13.76 billion, and net inflows have continued for 12 consecutive days.

Grayscale Investments®, the world’s largest crypto asset manager, today announced the second phase of its national survey, “2024 Election: The Role of Cryptocurrency,” which found that in the face of geopolitical tensions, inflation, and a weak dollar, two in five likely voters (41%) are looking at Bitcoin and other crypto assets—a statistic that is up from 34% in the first phase of the Harris Poll survey, which began in November 2023.

Likewise, voters increasingly say they expect to have part of their portfolios include cryptocurrencies (47% in 2021, compared to 40% in 2023). "Consistent with recent votes in the House and Senate, this data further demonstrates that cryptocurrency has become a bipartisan concern that cannot be ignored by either party," said Grayscale research director Pandl.

The rise in interest is mainly attributed to the successful launch of a spot Bitcoin ETF in the United States in January, which has now attracted $13.7 billion in net flows since its launch. Grayscale said that nearly a third of voters became more interested in cryptocurrencies as an asset class after the ETF received regulatory approval.

3. Outlook and risk reminder

The United States is currently at a critical moment and needs to make many important decisions, involving macroeconomic policy issues such as government interest rate hikes, inflation, and the United States' position on the international stage. As people's interest in cryptocurrencies increases, the government's future attitude towards this emerging digital asset has attracted much attention.

As the US election approaches, Trump and Biden have engaged in a heated debate on the most controversial issue of cryptocurrency in order to win voter and financial support. This move not only shows that the US political parties have an ambiguous attitude towards cryptocurrency, but also indicates the future direction of regulation and more rational risk management.

At the same time, with the election approaching, frequent law enforcement activities have also created a sense of conspiracy in the market, and the SEC seems to have expressed its stance. LBank reminds users to understand the inherent volatility of the cryptocurrency market and invest with a cautious and informed perspective, and not to blindly follow hype or social media trends.