Bitcoin Ownership Becomes Political Priority After U.S. Election, Says NYDIG
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Following the recent U.S. elections, the New York Digital Investment Group (NYDIG) has emphasized the rising importance of Bitcoin ownership. NYDIG’s global head of research, Greg Cipolaro, warned in a November 11 article that it’s increasingly risky for investors to avoid Bitcoin ownership.
He noted that “there are no excuses” for ignoring the cryptocurrency, stating, “Not owning the asset is going to become a liability in the future.”
Republican Influence on Bitcoin Ownership Policies
Cipolaro highlighted that with the Republican majority, Bitcoin ownership is poised to gain more acceptance and support at a regulatory level, which could attract mainstream financial institutions and investors.
The recent Republican wins in both the Senate and the House signal a stronger pro-crypto influence in U.S. policymaking. Cipolaro anticipates that new leadership in key government positions will lead to a more favorable environment for Bitcoin ownership.
Former President Donald Trump, a strong advocate of regulatory reform, has pledged to replace current SEC Chair Gary Gensler as Robinhood Legal Chief Dan Gallagher is being considered for the role. Gensler has been criticized for his tough approach toward crypto companies.
The SEC’s stringent actions, which included several lawsuits against major crypto firms, may ease with the anticipated shift in leadership.
Cipolaro suggested that a change in SEC leadership “may usher in a more accommodating regulatory philosophy,” which could encourage settlements with crypto companies or even result in certain lawsuits being dismissed.
Agencies like the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) might also adopt policies supportive of Bitcoin ownership, particularly in the context of banks offering custody services for digital assets.
Market Projections and the Future of Bitcoin Ownership
In addition to the political impact, market analysts have offered varying predictions on Bitcoin’s price trajectory as 2024 approaches.
CryptoQuant’s CEO, Ki Young Ju, recently projected that Bitcoin could close the year at around $58,974. Citing an overheated futures market as a key factor, he noted that “a strong year-end rally could set up 2025 for a bear market.”
Ki’s comments come as open interest in Bitcoin derivatives, like futures and options, nears a record $50 billion.
I expected corrections as BTC futures market indicators overheated, but we're entering price discovery, and the market is heating up even more.
If correction and consolidation occur, the bull run may extend; however, a strong year-end rally could set up 2025 for a bear market,…
— Ki Young Ju (@ki_young_ju) November 10, 2024
Recall that U.S. Bitcoin exchange-traded funds (ETFs) experienced one of their biggest single-day outflows on November 4.
With Bitcoin’s political relevance rising, Cipolaro believes Bitcoin ownership has shifted from a choice to an essential part of an investment portfolio.
“It is now becoming a political imperative,” he stated, pointing to Bitcoin’s recent performance, which includes an 84% increase in value this year alone.
This performance has reportedly been boosted by anticipation of pro-crypto regulatory changes following the election.
Cipolaro emphasized, “Investors who may have found it easy to dismiss or ignore the asset for various reasons will continue to do so at their financial peril.”
NYDIG’s stance suggests that Bitcoin ownership may soon be regarded as an indispensable asset class, particularly as the regulatory framework adapts to accommodate cryptocurrency.
According to Robbie Mitchnick, Head of Digital Assets at BlackRock, Bitcoin is emerging as a new global monetary alternative – a limited, decentralized asset that operates independently of any government authority.
