ChainCatcher news: Richard Galvin, co-founder of hedge fund Digital Asset Capital Management, said of the new round of market declines: "One factor is that a stronger Democratic candidate may replace Biden, and he may not support cryptocurrency. In the short term, a bigger reason for Bitcoin's weakness is the selling pressure from Mt. Gox and the selling behavior of government addresses."
Additionally, Noelle Acheson, author of Crypto Is Macro Now, noted: “Bitcoin continues to struggle with selling pressure from miners.”
However, sentiment in the cryptocurrency market could quickly shift if weak U.S. economic data spurs bets on the Federal Reserve easing monetary policy, and the approval of an Ethereum spot ETF could also boost market sentiment.
Interpretations of U.S. political developments could also change. Matt Hougan, chief investment officer at Bitwise Asset Management, believes a potential change in Democratic candidates “is more likely to be in a better position to address crypto issues.” He said the government’s overall attitude toward digital assets has improved over the past year.
