“Crypto Needs Gary Gensler Gone”

• Bitpanda’s deputy CEO expects more clarity on US crypto regulations regardless of who wins the US presidential election.
• Favorable macroeconomic conditions should support crypto markets in 2025, executive says.
• The approval of more spot ETFs is likely despite Bitcoin, Ethereum’s slow start, he says.

Lukas Enzersdorfer-Konrad is Deputy CEO at Bitpanda, a European-based cryptocurrency exchange with over five million users. to European Blockchain Convention held in Barcelona, ​​the executive shared with FXStreet his views on the current state of the crypto industry and its regulation, how the upcoming US presidential election may affect the markets, and what traders need to consider when investing in crypto .

Lukas Enzersdorfer-Konrad. Source: Bitpanda.

Q: It has been an eventful year in the crypto market. How do you assess the behavior of the market in 2024?

If we look at 2024 and the outlook for 2025, it was quite macroeconomically determined. We have seen for the first time rate cuts (interest rates) by the US Federal Reserve and the European Central Bank in Europe, which may continue into next year. This means money becomes less expensive, which is a good starting point for a high-risk asset class like crypto.

Also, with the US election approaching, regardless of who wins, we will get more clarity on how crypto will be treated in the US. This year we still saw a lot of confusion in the US market. So these are two events that can have a positive impact on crypto sentiment.

Q: And what about technical developments in the crypto space?

A different aspect is that we have seen a lot of development in Layer 1 and Layer 2 chains. Ecosystems are growing on Ethereum and Solana (SOL), so the next wave is going to be a very interesting one with real applications and real use cases for business in chain that will drive Web3 as part of the next cycle.

The next US administration is set to bring clarity on crypto, regardless of Trump or Harris

Q: About the US presidential election, do you see it as a binary event for crypto? Is it a “Trump positive and Kamala negative” or is it not so clear cut?

It doesn’t matter if it’s Kamala Harris or Donald Trump, there will be more clarity for a five-year planning cycle that will support institutional adoption of crypto. There may be speculation as to how Trump is more pro-crypto than Harris, but we won’t know until one of them is elected.

Q: What do you think about the current US Securities and Exchange Commission (SEC) crackdown on the crypto industry?

It is very interesting to watch. There are so many different interests in the US at play in the many SEC trials that go beyond what is good for crypto. It is interesting to see the personal opinions of the people involved.

Clarity will come only after the US presidential election and with the conclusion of all these lawsuits. So it is only right that these legal battles take place instead of being put off forever.

Q: Does SEC Chairman Gary Gensler need crypto to go away?

I would say yes.

The crypto market is becoming more and more transparent

Q: In addition to more regulatory clarity, what does crypto need to add value to increase adoption?

For crypto as an asset class, two things are needed: First, building Web3 interactions and on-chain applications that people start using. We are still at the beginning of this process.

The other is real-world interaction with regulated stablecoins to have remittances, payment services and facilitators. Bitcoin is not a vehicle for payments, it is a vehicle for storing value. As with gold, it won’t be used to pay, but stablecoins will be and are now getting a boost in Europe with MiCA, which is a regulatory catalyst. It’s a very exciting track for next year.

Q: Crypto trading is still a mysterious world if you compare it to Forex, where the fundamentals are clearer. How can exchanges help traders understand what’s going on?

Crypto markets are very immature and non-transparent. However, if you think about crypto ten or five years ago, it was a much more non-transparent market than it is now. From a nature perspective, Forex markets are very similar to crypto. It’s just that FX is already optimized and there’s a lot more history.

There will always be a lack of transparency as to why prices are moving. For example, we saw how Germany sold its Bitcoin reserves in one attempt, and it was understandable. Years ago, this wouldn’t have happened because some random wallet that no one knew about just dumped cryptocurrencies on the market.

On the other hand, it gives people opportunities when it comes to trading strategies because you can still make more money from crypto compared to FX.

Q: How does Bitpanda help traders understand what is happening in the markets?

We don’t try to tell people what to invest in. We aim to provide access and storage of value, trading, custody and staking in the best possible way for our customers.

What to buy and when to buy? This is for a customer to decide for themselves.

Q: If you had to give advice to a trader, what would you tell them in terms of what to look for?

If you invest in crypto, you are indirectly investing in the adoption of blockchain technology. So it’s not just about understanding the technology and how it works, but the use cases and what the L1 and L2 are in play so you can judge whether it’s going to get traction. Then invest in tokens around these ecosystems.

For trading, it is much more useful to apply old-world technical analysis, but that depends on your investment horizon.

How the dynamics of the crypto market change with the entry of institutions

Q: About the approval of US Bitcoin and Ethereum spot ETFs. Do you think these ETFs live up to expectations?

I would say yes, absolutely. ETFs are the next step in giving a new type of investor access to the asset class, but market sentiment needs to support that as well.

You may have the best access for institutional investors, but they won’t move larger amounts of capital if growth expectations aren’t there. The wealth of ETFs will be driven by macroeconomic trends – the price of money, interest rates – and also by clarity – ie the US election and regulatory frameworks. We will see new inflows of ETFs in the coming years when the market is better.

So far, geopolitical factors have mostly affected existing stock markets, but they are currently affecting crypto as well. Further investment also requires a positive macroeconomic outlook, and the current one is not so positive.

Q: Do you expect new ETFs to be approved in the US: Solana, XRP, etc.?

In general, yes, it will come. The question is when?

Q: When do you think that will happen?

I don’t know.

Q: How do you see the correlation between crypto and traditional stock markets, will it increase or decouple?

With more traditional market participants now moving into crypto, the correlation will increase. Not in price, but in activity. Mon-Fri trading activity in crypto is already much higher compared to five or seven years ago. We have fewer spikes on weekends as retail trading activity is down.

Q: What is your Bitcoin price forecast for one year?

I think Bitcoin price will be higher in a year. Where will he stay? We will see.