As Bitcoin carves out a position in the world’s financial landscape, recent events in the US have given it a bright future. At least, this is what an analyst at H.C. Wainwright & Co. sees.
Mike Colonnesse offered a weekly study on July 30 outlining several positive elements driving the Bitcoin and BTC mining sector including institutional momentum, expected legislative reforms, and political endorsement.
Trump’s Agenda On The Market
The expert detailed former President Donald Trump’s crucial position in crypto. Trump, currently running as a Republican, discussed his cryptocurrency idea at Bitcoin 2024. One of his goals is to make the United States the dominant global force in Bitcoin mining and set up a government bank with about $12 billion in Bitcoin.
Trump’s recommendations are barely distinctive. While Senator Lummis has developed a strategic reserve plan, independent candidate Robert F. Kennedy has proposed hoarding one million Bitcoin. Together, these political sponsorships might help raise awareness on cryptocurrencies among the masses, Colonnesse said.
Polymarket figures show Trump’s odds of announcing a strategic Bitcoin reserve to be at an explosive 100%. Should he find himself sitting again in the Oval Office, this would support additional institutional investment and help to solidify Bitcoin’s status as a national asset.
Regulatory Reorganization: Potential SEC Changes
Meanwhile, the expected political change might affect the regulatory surroundings. Positive news for the digital asset market could come from Trump’s election — and the likely replacement of Gary Gensler, the chairman of the Securities and Exchange Commission (SEC).
Gensler’s term has been defined by severe legislative moves against crypto assets and blockchain funding. His exit may set the stage for less strict rules, which would inspire innovation and growth for the general crypto space.
Based on his findings, Colonnesse said that because of heightened institutional acquisition through spot exchange-traded funds (ETFs) and the possibility of regulatory clarity under the new SEC leadership, the overall Bitcoin sector might reach new heights in the next year.
Environmental Issues, Sentiment, Scarcity Define Market Dynamics
These factors should boost Bitcoin prices due to scarcity. Bitcoin prices normally climb after halving events, which decrease new Bitcoin generation. Supply-demand forcing Bitcoin into reserves and institutional holdings may raise prices.
Still, certain difficulties are ahead. Among the possible challenges Colonnesse notes are major legal and regulatory consequences, environmental problems with Bitcoin’s energy-intensive proof-of-work mining method, and natural market volatility.
Governments around the world are actively watching the behavior cryptocurrencies. Any major disruption or ban might threaten market viability and investor trust. However, Bitcoin’s economy is growing despite these limits.
Featured image from Vecteezy, chart from TradingView