Crypto Political Influence Ignites Bitcoin Bull Run: Report

A stunning Bitcoin bull run and a Trump victory —no one saw this coming. But with Bitcoin and other digital assets reaching new all-time highs, what’s the strategy for maximizing profits in this unexpected bull market? The answer, according to a recent Hyblock Capital Market Report, may lie in the unprecedented political influence the crypto industry has wielded in the 2024 election cycle.

Bitcoin Bull Run Gains Momentum

“The U.S. cryptocurrency sector is making history,” said Shubh Varma, CEO and co-founder of Hyblock Capital, in his weekly market overview shared with The Shib Daily. “Investing over $238 million in political contributions, it has outpaced traditional heavyweights like oil, pharmaceuticals, and major Wall Street firms.” This massive investment, Varma explained, reflects crypto’s growing influence, not just in financial markets but also in the political arena.

Crypto Political Influence Ignites Bitcoin Bull Run: Report — *credit: Hyblock Capital*

This political engagement has yielded tangible results. Varma highlighted the significant influx of pro-crypto candidates into Congress, exceeding 290 representatives. “The defeat of Sherrod Brown, a crypto-skeptic, by Bernie Moreno in Ohio underscores the potential political liability of opposing digital assets,” Varma noted. This shift in the political landscape, coupled with a Republican-leaning government, created a favorable environment for pro-crypto policies.

The report further emphasized the role of key figures like Howard Lutnick, a prominent Bitcoin investor and CEO of Cantor Fitzgerald, who donated millions to support the Republican candidate. “Trump’s campaign has committed to removing SEC Chair Gary Gensler,” Varma pointed out, referencing a figure widely criticized for his regulatory approach to digital assets. This potential change in leadership at the SEC could significantly impact the regulatory environment for cryptocurrencies.

This confluence of political factors, according to Varma, fueled the current bull market, driving Bitcoin to an all-time high of $89,000. The possibility of Bitcoin entering U.S. strategic reserves added another layer of bullish sentiment, potentially attracting massive institutional investment. “If this were to happen, it could trigger significant demand as central banks consider diversifying into BTC,” Varma suggested.

Caution Amid Bitcoin Bull Run

However, Varma cautioned against unchecked optimism. He analyzed several key market indicators to provide a balanced perspective. The Fear & Greed Index, while in “extreme greed” territory, only saw a modest increase of four points following Bitcoin’s historic surge.

“While this typically precedes consolidation or minor corrections in bull markets,” Varma explained, “a parallel can be drawn to November 2020, when the market sustained ‘extreme greed’ levels for a remarkable 76 consecutive days.”

Other indicators, such as the unusually low True Retail Long percentage and high Open Interest, suggested potential for further upward movement, according to Varma. He also underlined strong institutional demand, evidenced by significant buying activity from Coinbase spot buyers and ETF inflows.

Despite the bullish signals, Varma advised caution. He recommended using pullbacks as buying opportunities and closely monitoring metrics like retail long positioning and leverage imbalances for potential signs of a market top. “With BTC’s bull run gaining momentum,” Varma noted “these insights will be crucial for positioning amid evolving market conditions.”

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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