Tron founder Justin Sun has urged China to reassess its position on Bitcoin, following former President Donald Trump’s endorsement of the digital currency and plans to make the U.S. the world crypto capital.
Trump pledged to create a “strategic Bitcoin stockpile” for the U.S. during his keynote address at the Bitcoin 2024 conference in Nashville on Saturday.
“As the final part of my plan today, I am announcing that if I am elected, it will be the policy of my administration, the United States of America, to keep 100% of all the Bitcoin the U.S. government currently holds or acquires into the future,” Trump stated. “I hope you do well.”
Responding to Trump’s comments, Sun, a prominent figure in the crypto world, said competition between the two countries is likely to benefit the entire industry.
“China also needs to step up. Since President Trump pushed for Bitcoin, U.S. policies have warmed. China should make further progress in this area. Competition between China and the U.S. in Bitcoin policy will benefit the entire industry,” Sun said on Twitter.
This statement comes against the backdrop of China’s historically stringent stance on cryptocurrencies.
The country, once a global leader in Bitcoin mining and trading, has implemented some of the world’s most restrictive policies on digital currencies in recent years.
In 2013, the country emerged as a powerhouse in the crypto space, with Chinese miners accounting for more than 70% of the Bitcoin network’s mining power by 2017.
However, September 2017 marked a turning point when the government banned Initial Coin Offerings (ICOs) and ordered the closure of domestic cryptocurrency exchanges.
Despite these initial restrictions, mining operations continued to thrive in China due to cheap electricity—particularly in regions like Inner Mongolia, Xinjiang, and Sichuan. This allowed China to maintain its dominance in the global crypto mining landscape for several years.
However, the situation changed dramatically in 2021. In May of that year, Chinese Vice Premier Liu He announced a sweeping crackdown on Bitcoin mining and trading.
This was followed by a series of regulatory actions, culminating in September 2021 when the government declared all cryptocurrency transactions illegal, effectively banning mining nationwide.
The Chinese government cited several reasons for this hardline approach, including concerns over financial stability, environmental impact due to mining operations’ high energy consumption, prevention of capital flight, and the desire to maintain control over the financial system.
The impact of China’s ban was felt globally.
The Bitcoin network’s hash rate dropped by over 50% temporarily, and there was a mass exodus of mining operations to countries like Kazakhstan, Russia, and the United States.
While cracking down on decentralized cryptocurrencies, China has been actively developing its own Central Bank Digital Currency (CBDC), the digital yuan.
This state-controlled digital currency is seen as a way for China to modernize its monetary system while maintaining oversight of financial transactions.
Sun’s call for China to “step up” in the realm of Bitcoin policy represents a significant challenge to this status quo, suggesting that China risks falling behind in the global race for cryptocurrency adoption and innovation if it maintains its current prohibitive stance.
Industry experts suggest that a shift in China’s Bitcoin policy could have far-reaching implications for the global cryptocurrency market.
“The U.S., especially under President Trump and following administrations, has shown growing support for Bitcoin, establishing itself as a leader in the global crypto space. If China were to take a similar path, it could lead to healthy competition between the two economic powerhouses,” Anndy Lian, author and intergovernmental blockchain expert told Decrypt. “This competition could lead to advancements in blockchain technology, better regulatory frameworks, and broader cryptocurrency adoption.”
He added that the global market would benefit from increased liquidity, enhanced security measures, and stronger infrastructure. Additionally, balanced regulations in both countries could help mitigate risks related to volatility and fraud, increasing investor confidence.
The shocking news of Joe Biden’s withdrawal from the 2024 United States presidential election race has sent shockwaves through the financial markets, including the crypto community, particularly concerning liquidations.
Such sudden political news caused significant market volatility. In the 30 minutes following President Biden’s announcement, around $67 million worth of leveraged long positions in the crypto market were sold, data on Coinglass showed.
Total liquidation of crypto assets in 1-hour time slots in the last 24 hours. Source: Coinglass
We spoke to industry experts to see where their thoughts stand, on the future of the cryptocurrency industry ahead of the upcoming US presidential elections.
Key Takeaways
Biden’s unexpected withdrawal caused significant market volatility, leading to the liquidation of around $67 million worth of leveraged long positions within 30 minutes.
Investors are unsure whether the next administration will adopt a more stringent or lenient approach to cryptocurrency regulation, causing market volatility as they adjust their positions.
Trump’s entry into the presidential race with a pro-crypto agenda has fueled speculation that his potential victory could lead to favorable regulations and broader adoption of cryptocurrencies.
Harris’s position on cryptocurrency regulation remains unclear, adding to market uncertainty.
The outcome of the presidential election is expected to have a significant impact on the cryptocurrency market.
Crypto Markets Strongly React to Biden’s Exit
Cryptocurrency markets are known to react loudly and effectively to stressful political events, and Biden’s exit from the presidential election campaign was no exception.
During that time, the price of Bitcoin (BTC) fell by around 1.4% from $67,461.61 to $66,493.43. The cryptocurrency has been volatile ever since, falling to as low as $65,500 on July 23, 2024, and currently trading at about $66,000.
Anndy Lian, an intergovernmental blockchain expert and author of Blockchain Revolution 2030, told Techopedia that Biden’s “unexpected withdrawal introduced a level of unpredictability, causing investors to quickly adjust their positions” in the market. The immediate liquidation of long positions indicated that many traders were “caught off guard and moved to mitigate potential losses.”
On top of that, Biden’s endorsement of Kamala Harris has the potential to reshape the political landscape, further influencing market sentiment. Lian said:
“Investors might have perceived Harris as having different policy stances on cryptocurrency regulation compared to Biden, prompting a reassessment of the market’s future. This shift in political dynamics can lead to volatility as traders speculate on how new leadership might impact the regulatory environment for cryptocurrencies.”
Ben Kurland, the CEO of crypto research and charting platform DYOR, added that Biden’s announcement is largely seen as a positive within the crypto community, which was also reflected in BTC’s price which gained about 2.8% after falling by 1.4% post-announcement.
“Investors reacted strongly to the news as Biden’s exit signals a shift in future regulatory policies. The prospect of a new administration with positive views on cryptocurrency is seen as a bullish sentiment. This development indeed suggests that the upcoming elections could have a much larger impact on the crypto market than previously anticipated.”
Biden’s Decision Triggered Uncertainty Over Future Regulations
The relationship between the US and its regulatory policies regarding cryptocurrency markets is a never-ending story, and Biden’s decision to exit the presidential race has certainly opened up new concerns about where regulatory policies, economic strategies, and international relations could be headed in the future.
“Cryptocurrencies are particularly sensitive to regulatory news. Under Biden’s administration, there were ongoing discussions and actions regarding the regulation of digital assets. His exit could mean a potential shift in regulatory approaches depending on who succeeds him.
“Investors might anticipate either a more stringent or a more lenient regulatory environment, leading to volatility in the market as they adjust their positions based on these expectations,” Lian noted.
Vijay Pravin Maharajan, the CEO and founder of bitsCrunch, an AI-enabled decentralizedblockchain data network, added that following Biden’s announcement, investors could expect more of Trump’s crypto-friendly rhetoric, especially at the upcoming Bitcoin Conference in Nashville, where Trump is due to speak.
However, Maharajan also reminded that in the long term, the future of crypto will still hinge on progressive regulatory advancements and not just pure speculation.
Of course, Biden’s exit also means that investors and stakeholders will now closely be watching the new candidate’s stance on crypto regulation, as it has the potential to significantly influence market sentiment and investment strategies.
DYOR’s Kurland added that with Biden’s exit, many in the crypto industry are confident that Trump could win the elections.
Alex Momot, the founder and CEO of Peanut Trade told Techopedia that while Biden’s exit might not play a significant role for the future of crypto, it could still affect Republican policies and the overall expectation that Trump could become the next president.
Momot added that in that case, regulations from the Vice President or rumors about Larry Fink could also play a very positive role in the crypto industry. In recent days, the New York Post reported that if Trump wins the elections, he could appoint BlackRock’s CEO, Larry Fink, as the next Treasury Secretary due to their shared history. However, Trump denied this possibility.
DYOR’s Kurland added that Trump has shown he is willing and able to support crypto, especially in his recent comments that BTC and other digital currencies “are very much here to stay.”
“If Trump wins, I believe it will not simply be an initial shock but will likely propel Bitcoin to new heights and allow for more innovation and growth in the sector in the US, which should time up nicely with an anticipated extension to this bull market cycle.”
However, all of this could also be very ambiguous as it highly depends on where Kamala Harris stands in relation to cryptocurrency policies.
Kamala Harris & Crypto: An Uncharted Territory
Speaking with Techopedia, Lian noted that Harris’s stance on cryptocurrency policies continues to remain ambiguous. However, in a recent interview with Decrypt, US entrepreneur and BTC enthusiast Mark Cuban noted that he has received a handful of questions about crypto from Harris’ campaign team.
Lian added that Harris does have a history of being tech-friendly, stemming from her time as District Attorney of San Francisco and Attorney General of California, where she engaged with the tech industry extensively. Thus, her background suggests she may have a more open and innovative approach to technology, including cryptocurrencies.
“Secondly, as Vice President, Harris has been part of an administration with a cautious but progressive stance toward digital assets,” Lian added. “The Biden administration has focused on balancing innovation with consumer protection and regulatory oversight. If Harris continues in this vein, we might expect her to support a regulatory framework that encourages innovation while ensuring market stability and protecting investors.”
Michael Brescia, the CEO and co-founder of Cerus Markets, agreed, noting that while Democrats tend to be more pro-regulation than Republicans, there is a slight possibility that Harris will take a more balanced approach toward crypto regulation.
However, since Harris is yet to outline her views on crypto regulation, it leaves much room for speculation.
BitsCrunch’s Maharajan added:
“Given the plaudits that Trump has received from the crypto community, the Harris campaign should at the very least outline their plan for fostering crypto innovation on US soil. Talk of overly restrictive policies would certainly dampen market momentum.”
The Bottom Line
After speaking with some pro-crypto experts, Lian noted that the general sentiment within crypto circles is that Trump could win the current US presidential election, especially given the ongoing aftermath of Biden’s exit.
“To be very honest, I did a quick poll and most of my pro-crypto friends are all assuming that Trump will win. Most of them do not care about Harris. Maybe this is also an Elon Musk effect.”
Biden’s exit has definitely added a “wild card” to the election campaign, Cerus Markets’ Brescia added, making the outcome much harder to predict than ever before. On the contrary, he believes that the current events have led Trump’s odds of winning the election to decline.
One thing stands clear, however: no one can predict the direction of the crypto markets unless Harris opens up about her stance on crypto regulations.
Anndy Lian还透露，Neurai 不仅为 COPX.AI 提供服务，团队中的一些成员还积极参与到 COPX.AI 的发展中。COPX.AI 作为一个去中心化自治组织（DAO）运作，Neurai 的部分团队成员正在为 COPX DAO 提供产品和技术建议。“包括我在内的团队成员，已经成为 COPX DAO 的核心成员，利用我们的专业知识推动项目发展，”连补充说。
Anndy Lian表示：“AI 在金融领域不仅仅是关于交易，它还作为一个基础层来检测欺诈行为。虽然许多金融系统已经基于区块链，并具备足够的安全性，但在区块链数据之上加入 AI 系统，可以进一步提升安全性。在 Neurai，我们致力于通过 AI 提升金融交易的安全性和效率，打造一个更安全、更可靠的金融生态系统。COPX.AI 通过整合用户行为和交易策略，可以提供更加个性化和有效的交易解决方案。这种以用户为中心的模式不仅惠及个体交易者，还能促进整体 AI 系统的提升。我们对 COPX.AI 的未来以及它在金融和交易领域的变革潜力充满期待。”
Anndy Lian在 Web3BB 东京大会上的讲话强调了 AI 对金融未来的重大影响，以及 Neurai 在 COPX.AI 上的创新成果。随着 AI 不断发展并与金融技术融合，未来更安全、高效和个性化的金融解决方案变得愈加可期。
Neurai 致力于通过 AI 改善金融生态系统，使其在金融科技行业中处于领先地位，为金融创新的新时代铺平道路。有关 Neurai 和 COPX.AI 的更多信息，请访问 Neurai 的官方网站。
关于 Neurai
Neurai 是一家总部位于新加坡的领先 AI 技术公司，专注于为金融科技行业开发和提供 AI 解决方案。Neurai 以创新和以用户为中心的设计为重点，处于将 AI 与金融技术整合的前沿，旨在创建更安全、高效和个性化的金融解决方案。
公司致力于利用 AI 改善金融生态系统，使其在金融科技行业中处于领先地位，为金融创新的新时代铺平道路。Neurai 在 AI 财务建模方面的开创性工作，如 COPX.AI 所示，展示了他们致力于提供前沿解决方案，以满足金融行业不断变化的需求。
