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Bitcoin prices fell over 1% at the start of the final week of July, trading at $67,264.00 after reaching a high of $69,982.00. Ether also saw a decline, despite a brief rise of over 1% to $3,311.28. The cryptocurrency market ended last week with Bitcoin gaining 1% and Ether dropping 7%.
Traders are closely monitoring central bank meetings this week, including those of the Federal Reserve, Bank of Japan, and the Bank of England. Market participants are particularly focused on Fed Chair Jerome Powell, hoping for indications of an interest rate cut in September.
The cryptocurrency market was also influenced by political developments over the weekend. Former President Donald Trump delivered a keynote address at the Bitcoin Conference in Nashville, targeting Democratic lawmakers such as Senator Elizabeth Warren, SEC Chair Gary Gensler, and the Biden administration. Trump criticized these officials for allegedly stifling the industry through inadequate regulation and vowed to retain 100% of the Bitcoin currently held by the U.S. government, aiming to establish a National Strategic Bitcoin Reserve. Trump also promised to replace Gensler “on day one” if elected.
On the same day, Senator Cynthia Lummis of Wyoming announced plans to introduce a bill to create a substantial Bitcoin reserve, proposing a program to acquire approximately 5% of the total Bitcoin supply over time.
Despite the high-profile comments, Bitcoin’s price dipped about 1% during Trump’s speech but rebounded shortly after. Economist Noelle Acheson, author of the “Crypto is Macro Now” newsletter, expressed skepticism about the long-term impact of the weekend’s events on investor sentiment. She highlighted that both Trump’s proposals and Lummis’ bill may face significant hurdles in Congress.
Acheson noted a potentially more impactful development: Vice President Kamala Harris’ team is reportedly engaging with crypto industry representatives. This outreach could signal a shift in policy and a possible distancing from the current SEC Chair Gensler, suggesting an increased likelihood of regulatory changes.
Additionally, the Financial Times reported that Harris’ advisors are working to improve relations with the crypto sector, which has increasingly supported Trump. The growing bipartisan support for crypto in Congress is evident, with more than a dozen House Democrats and several congressional candidates advocating for a “forward-looking approach” to digital assets and calling for pro-crypto language to be included in the Democratic Party platform.
As the cryptocurrency sector gains traction, political dynamics and regulatory developments will continue to play a significant role in shaping market trends and investor behavior.