KEYTAKEAWAYS
- Structural factors and significant Bitcoin sell-offs drive the market into an oversold state, influencing future rebounds.
- The Biden administration's evolving stance on cryptocurrency influenced by substantial voter interest, reflecting potential shifts in policy.
- PoliFi tokens rally after dispelling rumors of an official connection between DJT tokens and Donald Trump's political campaign.
CONTENT
In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.
MARKET STRUCTURAL SHIFTS IMPACT BITCOIN
10x Research has released a report indicating that Bitcoin is severely oversold, urging followers to buy on dips, especially as altcoins have weathered the storm. The Fear and Greed Index, typically associated with market lows, is nearing its minimum. Bitcoin’s sell-off has been attributed to several factors: the distribution of Mt. Gox’s Bitcoin holdings, the German government’s sale of confiscated Bitcoins, Bitcoin miners selling off $2-3 billion, ETF sales of $1.4 billion, and OG wallet sales of $1.2 billion.
The combined impact of these sales, estimated between $16-18 billion, is akin to the inflow into Bitcoin ETFs this year. Despite claims attributing recent declines to Mt. Gox’s FUD and other factors, there appears to be a deeper structural factor at play, potentially leading to a more profound market impact and a deeper decline before any recovery.
BIDEN ADMINISTRATION’S CRYPTO SHIFT LINKED TO VOTER INTEREST
Marathon Digital CEO Fred Thiel has commented on the potential impact of the upcoming presidential election on the cryptocurrency industry, highlighting a recent shift in the Biden administration’s stance. This shift may be attributed to the administration recognizing that 55 million voters are interested in cryptocurrency.
Both the Senate and the House passed a resolution to repeal the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), which was vetoed by President Biden. The crypto industry has voiced concerns over SAB 121, citing increased operational complexity and compliance costs. Thiel believes more bipartisan cooperation is needed for successful legislation in this area.
POLIFI TOKENS RECOVER AMIDST DJT-TRUMP SPECULATION
PoliFi tokens such as TRUMP, TREMP, and BODEN have regained their losses following a series of denials about any official link between the DJT token and Donald Trump’s campaign. Despite denials from Trump’s associates, the TRUMP token surged 24%, TREMP by 20%, and the Biden-themed BODEN by over 45%.
The overall PoliFi sector has seen a 14% increase, according to market data. This recovery stems from a market consensus that the DJT token does not have an official connection to Trump or his family. Investigations revealed that Martin “Pharma Bro” Shkreli, a convicted felon, was behind the DJT token, a claim Shkreli confirmed while also alleging involvement from Barron Trump, though this remains contested. Roger Stone, a Republican political consultant, confirmed there was no official campaign involvement.
