The political fiasco that shook Bitcoin
In one of the most embarrassing chapters of recent American politics,David Sacks, named to lead the cryptocurrency and AI revolution in the U.S., left office after only 130 days – without fulfilling any of the promises made.Bitcoin dropped 12% since May, when Sacks took over, and the global crypto market records massive withdrawals with investors in a state of apathy, according to the analysis ofJournal of Coin.
Empty Legacy: What has Sacks left behind?
Named to take on a strategic role in regulating and encouraging the digital asset sector, Sacks has failed to place even theClarity Act, a bill that sought to give regulatory clarity to crypto companies in the U.S. No legislative advances and with Bitcoin operating below$60 thousand- far from the historic record close to $70,000 - the market began to question the lack of strategic direction.Analysts at CoinTribuneThe absence of Sacks represents another blow to the optimism that was forming around the rapprochement between blockchain technology and American public policy.Read more at CoinTribune.
In Brazil, where the crypto market moves more thanR$20 billion per monthBrazilian investors, who already face high tax burden and bureaucracy, now fear that the lack of clarity in the U.S. could further delay institutional adoption in the country.”Clear regulation in the U.S. is a beacon for the rest of the world. Without it, Brazil may take longer to build a safe environment for and funds“A crypto manager who preferred not to be identified said.
Suspicious Death and Conspiracy Theories: How the Industry Reacts to Trust Crises
As the U.S. market debated Sacks’ departure, a news shocked the global community:Nikolai MushegianMakerDAO, a blockchain engineer and former MakerDAO employee, was found dead hours after posting a message on Twitter claiming it would“Dead by the CIA”The post viralized the Brazilian community on Reddit, generating intense discussion about developer security and the risks involved in the industry.The case is under investigationBut it already feeds theories about pursuing crypto market professionals.
For the average Brazilian investor, episodes like this reinforce the perception that the market is still volatile not only in prices, but also in institutional risks.”In a country like Brazil, where financial education is still low, these events create additional barriers.“A financial educator who specializes in digital assets.
What to expect for the future?
Despite the pessimism, some analysts still see light at the end of the tunnel. Anthony Scaramucci, a former Trump adviser and crypto enthusiast, said in a recent podcast that the market could recover as early as 2025, as long as two factors occur:The monetary policy of the Federal Reserve(reduction of interest) andConcrete advances in American regulationAccording to Scaramucci, Bitcoin could test the range again$100 thousandBut until then, the market must continue in the mode of “apathie et accumulation” – that is, stagnation with accumulation of positions, as analysts of theJournal of Coin.
In Brazil, the perspective is mixed.volume of transactions on domestic exchanges grew 15% in the first half of 2024On the other hand, the lack of a specific regulatory framework for DeFi (decentralized finance) leaves Brazilian projects at a disadvantage over international competitors.
“Brazil has huge potential to become a DeFi hub in Latin America, but without clear rules, companies end up choosing more predictable regulators, such as Singapore or Switzerland.“This is an assessment by an executive of a crypto fintech based in São Paulo.
Lessons for Brazilian Investors
The cryptocurrency market is experiencing a time of transition between exaggerated expectations and cold reality. David Sacks’ departure from the US and Mushegian’s death show that in addition to market risks, there are external factors – political, regulatory and even personal – that directly impact investor confidence.Diversify, study each project deeply and avoid sensational news-based decisions.
Meanwhile, the market is waiting for signs of recovery. Bitcoin may be looking for a new level, but the road is still long and full of curves.Regulatory clarity and institutional security will continue to be the main drivers of adoption by 2025.