22nd November 2024 > > Gensler, the US govt, & alts.

tl;dr

Gensler has gone. Cryptos are going mainstream within the US government. Alt season may just be getting going.

Market Snap

Market Wrap

We had our first breach of $99k to the upside yesterday evening, which was very exciting to watch.

There is one very bullish sign over the last week, apart from the obvious one of trading up from $89k to over $99k.

Every single dip gets bought – the dips just do not last longer than mere minutes.

That isn’t technical analysis by the way – it is an insight into the current market psychology. You may put forward a legitimate case that the market is getting a little frothy, and I cannot deny you may be proved right. But before enough investors agree with you, we could see a whole lot more positive price action.

Curious Cryptos’ meme corner

Curious Cryptos’ Commentary – Gensler has gone

Gensler was appointed Chair of the SEC on April 17th, 2021. He has resigned. That has been three and half years just simply wasted.

What more do I need to say?

Curious Cryptos’ Commentary – The US government

Trump has appointed Cantor Fitzgerald CEO Harold Lutnick as U.S. Secretary of Commerce. Harold is already the proud owner of a BTC stash valued in the “hundreds of millions”. I think he means dollars. Howard has been critical in the past of the SEC in its attitude towards cryptos. His firm also manages most of the investments held by Tether as collateral for USDT. I think we can safely assume he is on our side.

There are also as yet unsubstantiated rumours that Trump will create a new executive position within the US government dedicated to the crypto sphere. Just how marvellous would that be?

Cynthia Lummis is the architect of the bill designed to establish a BTC reserve owned by the government, legislation which is expected to pass by the end of the first quarter 2025. Cynthia is a shoo-in for the new job. But apparently, she does have competition.

My sources at Mar-a-Lago reliably inform me that the very first applicant for this new role was one Mr. G. Gensler claiming to be currently unemployed, and with a gap on his CV dating from April 17th, 2021, for reasons unknown. I am confident his suitability for the role will be fairly judged.

The US is on the verge of becoming the most crypto friendly jurisdiction on the planet, driving innovation, ratcheting up crypto adoption, providing a bulwark against those who wish to deny our privacy, freedom, and liberty, and generally making the world a far better place than it would otherwise be.

Oh, and also impacting the price of cryptos. I almost forgot that bit.

Curious Cryptos’ Commentary – Alts

With all eyes on BTC, alts have been largely unloved of late. That is starting to change, encouraged by the timely and longed for departure of Gensler.

SOL hit a new ATH this morning, ETH had a great day yesterday, XLM has more than doubled in a week, XRP is back at highs last seen in 2021. There are plenty of other examples.

Nearly all the institutional money flooding into the market is headed BTC’s way, with a minor amount allocated to ETH. In contrast, alts are a retail product. In past times, profits from BTC get recycled into the alt market leading to alt season. Assuming that the flow of investment money continues to grow (another $1bn went into the spot BTC ETFs yesterday alone) the price of BTC can only go in one direction, increasing retail profits from BTC. New retail investors (and they are starting to show up now) will baulk at three figures for BTC, and will look elsewhere.

It is very possible that retail enthusiasm for alts this time round will put past cycles to shame.