Robert F. Kennedy Jr. Supports Crypto as Dubai Builds Bitcoin Tower

The recent debt ceiling crisis in the United States has generated uncertainty in all economic sectors, both traditional and unconventional. This scenario has also called into question the future of cryptocurrencies and their performance in the market. After a 2022 marked by the so-called “crypto winter”, the cryptocurrency market, led by bitcoin, had shown signs of recovery and a rising start to the year. However, this apparent tranquility could be threatened if an agreement is not reached in the US congress, according to Coinspeaker.

During the bank’s Investor Day, JPMorgan Chase CEO Jamie Dimon issued a stern warning to investors about the potential for higher interest rates. Surprisingly, Dimon even hinted at the possibility that the Federal Reserve (FED) could raise interest rates as high as 7%. In early May, the Fed had already raised benchmark interest rates to 5%-5.25%, signaling a tighter monetary policy. Although this was thought to be the last increase, the central bank has suggested that it could continue with further increases if necessary.

On the other hand, uncertainty also lies in the ability of the US government to increase the debt ceiling. Given these circumstances, Dimon’s hint of tighter monetary policy certainly puts risk assets, including Bitcoin and cryptocurrencies, under pressure. In recent weeks, there have been constant outflows of bitcoin investment products. According to CoinShares, Bitcoin investment products have seen net capital outflows for five consecutive weeks, reaching a total of $235 million.

Furthermore, weekly trading volumes for crypto assets have reached historically low levels. Despite this, bitcoin and the cryptocurrency market have shown strong performance even during this year’s banking crisis. Since the beginning of 2022, Bitcoin has seen a drop of approximately 40%.

In the midst of this panorama, it is important to mention the growing exploration of central bank-backed digital currencies (CBDCs). Unlike decentralized cryptocurrencies like bitcoin, CBDCs are issued and backed by central banks. However, its implementation poses challenges related to privacy, security and the need for clear regulations. The United States Federal Reserve and the People’s Bank of China are some examples of institutions that are exploring the issuance of CBDCs.

In addition, the Hong Kong Monetary Authority has started a CBDC pilot program in collaboration with banks and payment companies, with the aim of exploring its implementation in specific use cases. These initiatives show that central banks are actively considering government-backed digital currencies as an alternative to physical cash.

On the other hand, in the political arena, presidential candidate Robert F. Kennedy Jr. has made history by accepting bitcoin as part of his campaign donations. During his participation in the Bitcoin Miami 2023 Conference, Kennedy Jr. praised the cryptocurrency as a symbol of democracy and freedom. He presented proposals to regulate the crypto ecosystem, highlighting the importance of innovation and criticizing current regulations. In addition, he expressed his support for the right to own and use the popular cryptocurrency, as well as the use of electricity for mining.

Robert F. Kennedy Jr., born January 17, 1954, is the son of the late US Attorney Robert F. Kennedy and brother of President John F. Kennedy, assassinated in 1968. His adoption of bitcoin as part of his presidential campaign reflects the growing interest and recognition of cryptocurrencies in the political sphere.

In short, the US debt ceiling crisis has raised concerns in the cryptocurrency market and poses significant challenges for its future. Warnings about higher interest rates and uncertainty about raising the debt ceiling have impacted investor confidence and caused capital outflows from Bitcoin. Meanwhile, central bank exploration of CBDCs continues, with political figures such as Robert F. Kennedy Jr. joining the debate, fueling discussion about regulation and the potential of cryptocurrencies.


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