Regulation
If History Repeats Itself, Could Bitcoin Face Regulation Similar to the 1930s? Should We Support Trump?
Bitcoin has now not hit a new all-time high in 137 days, and that’s after the Bitcoin Nashville conference over the weekend, where former President Donald Trump spoke.
According to analyst Jason Pizzino, tThis phase marks the peak of the cycle where everything seems to be going up, including Bitcoin, other cryptocurrencies, stock markets, and real estate. Historically, such peaks are followed by corrections, which can be more severe than expected given the shallow or rapid corrections of the last 15 years.
He also mentioned a signal from March 2024, when the S&P 500 recorded three consecutive days of decline, indicating a potential top for Bitcoin. Since then, Bitcoin has remained below its high for 137 days. We are currently in that period, four months passed a few weeks ago – about 120 days – and stretching to six months, which would bring us to around 9/11.
The analyst also noted Bitcoin price stability around $68,000-$69,000, with significant support levels identified. Ethereum (ETH) and Solana (SOL) are analyzed, with Solana showing strong performance against Bitcoin and potential for further gains.
Will Trump’s Pro-Crypto Stance Send Bitcoin to the Moon?
At the recent Bitcoin Nashville conference, Trump urged people to hold onto Bitcoin, suggesting it could become a reserve currency. The announcement, while exciting, must be viewed in the context of historical market behavior, the analyst said.
Senator Cynthia Lummis also proposed that the U.S. Treasury purchase $1 million worth of bitcoin, although the idea, while intriguing, may seem far-fetched given current circumstances. Trump’s comments at the conference reflect a significant shift in attitude toward bitcoin, from skepticism to championing its potential as a strategic reserve asset.
Trump’s plans, including the firing of SEC Chairman Gary Gensler, are in line with what the crypto community wants to hear. However, it’s important to remember that market cycles operate independently of political rhetoric.
He drew attention to the ban on owning gold in the United States in the 1930s and compared it to the current promotion of Bitcoin, suggesting that history could repeat itself with Bitcoin becoming heavily regulated or seized by the government in the future.