to leave a comment.
▲ Cryptocurrency regulation/ChatGPT generated image
The cryptocurrency market has entered a structural transition period as the US government's trend towards regulatory clarity and the integration of institutional finance accelerate. The promotion of institutionalization bills with bipartisan support and the approval of cryptocurrency-backed loans by federal agencies are emerging as long-term growth drivers for the market.
On May 23 (local time), the cryptocurrency-focused YouTube channel Altcoin Daily reported in a released video that the US White House and Senate are strongly pushing for the passage of the US Cryptocurrency Market Structure Bill to establish a cryptocurrency regulatory framework. Senate Banking Committee Chairman Tim Scott emphasized that members of both parties, including Cynthia Lummis and Mark Warner, are offering bipartisan support, and that this legislation will be a historic milestone. The bill aims to reduce transaction costs and improve processing speed based on blockchain technology capable of real-time transaction verification.
In conjunction with the change in the US Federal Reserve Chairman, the prospects for cryptocurrency benefits from a macroeconomic perspective are also becoming more concrete. With Kevin Warsh recently officially appointed as the new Federal Reserve Chairman, market traders are fully pricing in the possibility of interest rate hikes this year. Jordi Visser, a Wall Street expert with 22 years of experience, predicted that the cryptocurrency market, including Bitcoin (BTC), will experience explosive growth as the US Consumer Price Index enters a negative real yield phase, surpassing the 3-month Treasury yield. He analyzed that further interest rate hikes are difficult as US debt interest costs exceed $1 trillion annually, surpassing defense spending, and ultimately, Bitcoin will become a key hedge against unsustainable debt situations.
With macro bottom signals confirmed by on-chain indicators, the inflow of large capital is also being reorganized around specific assets. Macro expert psychedelic analyzed that a 1-week on-chain indicator, which has 100% accurately predicted lows in all past cycles, recently shifted back into a bullish zone, sending a clear bottom signal. Hunter Horsley, CEO of Bitcoin Vector, a $15 billion asset management firm, named Solana (SOL), Hyperliquid (HYPE), TRON (TRX), and Ethereum (ETH) as the top four assets drawing attention from Wall Street. Horsley classified these assets as revenue-generating chains that drive on-chain capital market inflows and have clear revenue models.
Amidst the Donald Trump administration's trend of regulatory easing, the real-world adoption of cryptocurrencies is also accelerating in the US housing market. The US Federal Housing Finance Agency officially approved cryptocurrency-backed home loans for the first time in history, leading a change in the real estate market. With young people in their late 20s and 30s driving this trend, Fox Business contributor Katrina Campins completed a $4.22 million ultra-luxury home transaction in Boca Raton using Bitcoin payment in just 23 days. Although the fund verification and regulatory compliance procedures were stringent, the transaction closed faster than typical traditional transactions, and asset volatility was cited as a factor that could slow the entry speed for the middle class.
Long-term survival possibilities through technical enhancements and the historical value growth of Bitcoin are also drawing attention. Dan Boneh, a cryptographer at Stanford University, asserted that Bitcoin will transition to a post-quantum address and signature scheme in the future, completely solving the quantum computer problem and surviving. On Bitcoin Pizza Day, commemorating when Laszlo Hanyecz paid 10,000 BTC for two Papa John's pizzas 16 years ago, Jeremy Sturdivant, the counterparty in that transaction, recalled that he never imagined the asset's value would grow so much. The current value of that amount is $775 million.
*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.