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Author: Matt Hougan, Chief Investment Officer of Bitwise; Compiled by: 0xjs@Bitlink Vision
When I wrote this memo on Monday afternoon, the cryptocurrency market was rising sharply.Bitcoin has risen by more than 5% in the past 24 hours and Ethereum has risen by more than 7%.Altcoins followed closely behind.
This is the largest single-day increase in the cryptocurrency sector in the past two months.Even more interestingly, investors invested $555 million in Bitcoin ETFs on Monday, the biggest single-day gain in four months.
The rise was partly due to a plan announced by Democratic presidential candidate Kamala Harris on Monday, the plan advocates, among other things, the establishment of an intelligent regulatory framework for cryptocurrencies.
Read the US media coverage of the proposal and you’ll think Harris has embraced the cryptocurrency with his arms.
“Kamala Harris emphasizes capital access and cryptocurrencies to attract black men,” Bloomberg wrote.
But in fact, this statement doesn’t say much.Here is the full text of her agenda:
Let black men holding digital assets benefit from financial innovation.More than 20% of black Americans own or have ever owned cryptocurrency assets.Vice President Harris appreciates the new technology that can expand access to banking and financial services.She will ensure that owners and investors of digital assets benefit from regulatory frameworks, thus protecting black men and others participating in the market.
That’s it.This created $5 billion in Bitcoin market capitalization.
I don’t want to ruin everyone’s fun, but that… nothing!There is no mention of ensuring cryptocurrency companies have access to banking services; there is no mention of changes in regulatory leadership; there is even no moderate comment on “embracing innovation in digital assets” or “the United States is leading the way in blockchain.”
In fact, Harris’s words are more like Rorschach’s quiz than policy.If you oppose cryptocurrencies, you will see Harris push for strict regulation of cryptocurrencies in the name of “protecting” investors; if you support cryptocurrencies, you will see Harris push for regulatory clarity and open up for the industrythe road.
I don’t have much to do with the campaign to know exactly what she means.I’ve seen people who claim to know the inside story argue on both sides.From my point of view, you can only know one thing: The statement shows that Harris recognizes that cryptocurrencies are very important to an important demographic group and she will take the time to point it out.
This is good news.She knows that cryptocurrency exists, it’s important, and it won’t go away.But this is not the wholehearted embrace that cryptocurrency advocates hope.
However, the thing is this:This little bit of good news is enough to make Bitcoin rise by 5%.Enough to push over $500 million into Bitcoin ETFs.Enough to start wondering whether cryptocurrencies will eventually hit record highs.
To me, that’s the most interesting thing today.
Regardless of what Harris actually said, the price trend on October 15th day told me that there is a lot of capital waiting off the market for everything to go into the market before everything goes well.
In last week’s memo, I talked about pushingCryptocurrency hits record highs and what it takes to push Bitcoin to break through $80,000.In terms of elections, I mentioned that both the Republican Party win or the government splits.My comment implies that we have to wait until after the election to hit $80,000 again.
After today, I’m not so sure.Monday’s rebound tells me that if cryptocurrencies start to take off, people don’t want to fall behind.There is a lot of dry gunpowder outside the field.As long as we smell a clear scent, I think we will rise quickly.
