According to Odaily, Richard Galvin, co-founder of hedge fund Digital Asset Capital Management, has shared his insights on the recent downturn in the cryptocurrency market. Galvin suggests that one factor could be the potential replacement of President Biden by a stronger Democratic candidate who may not support cryptocurrencies. In the short term, he believes that the selling pressure from Mt.Gox and government addresses are larger reasons for Bitcoin's weakness.
Noelle Acheson, author of 'Crypto Is Macro Now', also commented on the situation, pointing out that Bitcoin continues to struggle with selling pressure from miners. However, she also noted that the sentiment in the cryptocurrency market could quickly change if weak US economic data prompts bets on the Federal Reserve easing monetary policy. The approval of an Ethereum spot ETF could also boost market sentiment.
The interpretation of US political developments could also change. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, believes that a potential replacement of the Democratic candidate is 'more likely to be in a better position to solve crypto issues'. He stated that over the past year, the government's attitude towards digital assets has generally improved.