Crypto Market Faces Uncertainty Following EU Parliament Election Results

Rupam Roy
June 10, 2024
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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Highlights

  • EU Parliament election results trigger heightened volatility in the cryptocurrency market.
  • Right-wing gains raise concerns about stricter crypto regulations in Europe.
  • Despite uncertainty, optimism persists with increasing institutional interest and minimal Bitcoin selloff risk.

The crypto market is witnessing heightened volatility as it reacts to recent macroeconomic and political events. The recent EU Parliament election results have significantly influenced investor sentiment, adding a layer of uncertainty to an already complex landscape.

Meanwhile, the political shift in Europe, alongside contrasting economic indicators from major economies, has left investors seeking clarity on the future of digital asset regulations and market stability.

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Crypto Market Faces Volatile Trading Amid Political Shifts

The recent elections in the European Union have resulted in substantial gains for far-right parties, notably affecting the crypto market with impact on the political dynamics in Germany, France, and Austria. In France, Marine Le Pen’s National Rally achieved a resounding victory over President Emmanuel Macron’s Renaissance party, which has led Macron to call for snap legislative elections.

Meanwhile, the right-wing success reflects a broader trend of anti-establishment sentiment for the crypto market across Europe. As a result, mainstream parties, while still in control of the 705-member European Parliament, face a notable challenge from the far-right surge.

Notably, this political shift has significant implications for the crypto market. According to recent reports, Jag Kooner, Head of Derivatives at Bitfinex, has previously expressed concerns that a right-wing tilt could result in stricter controls on cryptocurrencies.

Meanwhile, this perspective aligns with the broader apprehension that regulatory environments could become more restrictive under right-leaning governance. Conversely, a more crypto-friendly stance from mainstream or left-leaning parties could accelerate the adoption of supportive regulations, such as the Markets in Crypto-Assets (MiCA) framework.

Also Read: How Bitcoin Will Benefit From End Of US-Saudi Petrodollar Deal

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Economic Factors Weighing On Sentiment

In addition to political developments, recent economic indicators have further complicated the outlook for the crypto market. Last week, the European Central Bank (ECB) announced a rate cut of 25 basis points, initially sparking optimism among investors. This move was seen as a potential catalyst for economic growth and a supportive measure for risk assets, including cryptocurrencies.

However, the mood shifted abruptly on Friday following the release of stronger-than-expected U.S. job data. The robust employment figures dampened hopes for a similar rate-cut strategy from the Federal Reserve.

Notably, the crypto market reacted negatively, retreating as investors reassessed their expectations for monetary policy in the United States. This contrasting stance between European rate cuts and a potentially more hawkish stance from the Federal Reserve has introduced additional uncertainty into the market, affecting the confidence of crypto investors.

Meanwhile, despite that, the market pundits remained optimistic about the future of the crypto market. The U.S. Spot Bitcoin ETF has recorded a notable influx over the past few days, signaling increasing institutional interest. In addition, crypto analyst Ali Martinez has shrugged off the selloff concerns in the crypto market.

Bitcoin price short-term holders
Source: Ali Martinez

In a recent X post, Ali Martinez said that the short-term holders of Bitcoin are witnessing a profit of 3.35%, which signals a “minimal risk” over a further BTC selloff. Meanwhile, as of writing, the crypto market cap was down 0.21% to $2.53 trillion.

Also Read:

South Korea To Unveil Stringent Rules for Digital Assets, Here’s All

Polkadot Makes Big Moves In RWA, Here’s Why DOT Price Is Largely Undervalued

Bitcoin Notes $2B Inflows But Ethereum Steals The Spotlight, Here’s Why

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.