• John Deaton is urging financial advisors to advocate crypto accumulation amid evolving regulations
• Market uncertainty now testing investors’ confidence in the “buy the dip” strategy

The cryptocurrency market remains entrenched in a bearish trend, despite brief periods of upward momentum. In fact, mid and small-cap altcoins have faced sharp losses recently, further widening the performance disparity among market segments.

However, pro-XRP lawyer John Deaton is urging financial advisors to encourage their clients to accumulate crypto assets.

John Deaton’s latest call

In doing so, Deaton pointed to a rapidly evolving regulatory landscape and increasing institutional interest. According to him, these are key indicators that a market rebound could be on the horizon.

He also believes that while the current downturn may persist, strategic accumulation during this phase could yield significant gains once the market recovers.

Taking to X, Deaton noted, 

“If you’re a Financial Advisor, how are you not negligent, or even reckless, to not advise your clients to have, at least, a small percentage of your investments in Bitcoin and/or other digital asset.” 

What changed?

Deaton highlighted a pivotal shift in the cryptocurrency landscape, attributing the change to President Donald Trump’s influence on policy direction. He recalled that just two years ago, the industry was primarily focused on securing clear regulations and a fair playing field from regulatory bodies.

However, the sentiment has since evolved drastically. Growing optimism has been fueled by recent developments such as the announcement of a Strategic Bitcoin [BTC] Reserve and the appointment of a Crypto Czar.

Deaton believes these moves signal a more favorable regulatory environment, potentially driving greater institutional participation and mainstream adoption in the crypto sector.

He added, 

“We didn’t expect a President to appoint a Crypto Czar, form a Crypto Council or Digital Assets Working Group, or establish an SBR or SCR.”

In fact, Nickel Digital’s research revealed that over 80% of institutional investors see David Sacks’ role as Crypto Czar as pivotal.

What are the key reasons behind Deaton’s advice?

Deaton also underlined three key factors supporting crypto investments amid the U.S. government’s shifting position.

Despite a dip in Polymarket data from 45% to 30%, sentiment around a Bitcoin reserve remains optimistic.

Additionally, Deaton also pointed to the U.S. government’s budget-neutral Bitcoin acquisition strategy and Commerce Secretary Howard Lutnick’s significant BTC exposure, which could reach billions.

Aligning with the ‘buy the dip’ philosophy, market downturns may be prime opportunities for long-term investors anticipating a rebound.

Needless to say, this approach comes with inherent risks. Especially as the prices can continue to decline, leading to unexpected losses.

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