As a seasoned researcher with over two decades of experience in the financial sector, I have witnessed the ebb and flow of markets, economies, and political landscapes. The upcoming US elections have stirred a unique blend of anticipation and uncertainty in the crypto industry, particularly for Bitcoin and other digital assets.
As the U.S. elections draw nearer, there’s a great deal of excitement about who will be the next President of the United States and how their presidency may influence the cryptocurrency market, particularly Bitcoin prices. This election carries significant weight as some experts predict that crypto enthusiasts could play a crucial role in determining market trends.
This piece delves into the reasons why cryptocurrency is a key topic in the ongoing U.S. elections and presents the leading forecasts from analysts about its potential effects on the American and global crypto market.
Why are there many predictions related to crypto in this U.S. Election?
Bitcoin was initially launched back in 2009, but it’s during this upcoming U.S. presidential election that its influence and significance as a key political factor are being recognized more broadly. With Bitcoin prices stabilizing and prominent organizations like BlackRock stating that Bitcoin serves as the “store of value” for our generation, the economic climate has unexpectedly shifted in favor of the crypto industry and those who have advocated for it, despite the challenging years experienced during market downturns.
By 2024, the Federal Reserve projects that the U.S. dollar‘s original buying power will have dwindled to a mere 3%, leading many developing economies to seek alternatives for trade. Furthermore, there are concerns that the monetary decisions being made now to stave off recession could inadvertently lead to hyperinflation of the dollar, potentially triggering an economic slump.
Over the last few years, the economy has experienced significant ups and downs, with spells of rapid growth fueled by lax monetary policies and instances where economic instability was heightened by a growing debt crisis. This volatility has become more pronounced recently due to mounting global tensions and conflicts.
Consequently, numerous investors, people, and nations have chosen Bitcoin since its launch, viewing it as a solution to tackle economic volatility.
Today, America finds itself in an unparalleled predicament, requiring a delicate balance between a tool that could potentially resolve numerous financial woes. The trajectory of the global economy over the next quarter-century hinges significantly on the outcome of the election on November 5 and the management of bitcoin.
3 things that would likely happen after the election
Kamala Harris’s victory Could Favor Bitcoin- and Trump could Benefit Ethereum
As a researcher studying the relationship between US economic policy and cryptocurrencies, I’ve observed that when interest rates are low and it’s easy to acquire funds, there tends to be an increase in the value of Bitcoin. Given President Harris’s likelihood of continuing current policies focused on monetary expansion and increased government spending, this could potentially have a stabilizing or boosting effect on the crypto market.
Conversely, Trump’s presidency could potentially spur a pro-cryptocurrency sentiment within the U.S., leading to favorable regulations and growth for Decentralized Finance (DeFi). This would be particularly beneficial for Ethereum and other Layer-1 projects, as they serve as the foundation for numerous DeFi platforms. In essence, while both scenarios may have positive impacts on different areas of the crypto world, they do so in distinct manners.
Trump to make public a formal plan for Bitcoin and other Assets ahead of Election
Harris’s comments on digital assets have been sparse, often mentioning them in connection with other emerging technologies rather than focusing specifically on them. This suggests a possible lack of intent to delve deeply into cryptocurrency policy within her administration.
Instead of trying to put it another way, let me rephrase for you: In a reversal of events, Trump has made significant efforts to secure the “crypto vote.” This is notable because he was the first president ever to address the Bitcoin conference in Nashville in 2024. He expressed strong backing for Bitcoin’s future within the nation and promised to shield it from excessive regulations, particularly those proposed by Senator Elizabeth Warren. Moreover, Trump stands out as no one else has, having launched an independent financial venture called World Liberty Financial focused on decentralized finance (DeFi). This initiative further highlights his commitment to actively engage in this digital space.
As a crypto investor, I’m optimistic about the possibility of getting insights into the Trump administration’s proposed policies on cryptocurrencies and digital assets ahead of the upcoming elections. These potential guidelines could shape the regulatory landscape for cryptocurrencies within the U.S., offering clarity and direction for us in the crypto community.
Gary Gensler will be 100% out no matter the election outcome
Since taking office, SEC Chairman Gary Gensler’s stance on cryptocurrency regulation has sparked much debate within the crypto sector. His enforcement-focused approach, while effective in certain aspects, has also led to legal challenges. This has deepened the existing tension between the SEC and the industry, causing unease about reintroducing some leniency.
If elected, Donald Trump, the previous U.S. president, has indicated he would dismiss Gary Gensler from his position. Historically, chairs of the Securities and Exchange Commission (SEC) often leave their posts or take up new roles as administrations change. This indicates that policy regarding cryptocurrencies is gaining more political influence.
If Vice President Harris were to win the elections, it’s expected her administration would maintain a similar stance towards the cryptocurrency market in an effort to gain its support. This implies that regardless of the election results, there could potentially be a shift in regulatory focus regarding the use of cryptocurrencies.
Conclusion
Just as tech entrepreneur Elon Musk stated at a rally held by Donald Trump in Pennsylvania that this election is crucial for U.S. history, it’s also being closely followed by the entire cryptocurrency sector and millions of crypto enthusiasts across the USA and worldwide. Regardless of who emerges victorious on November 4th, one thing is certain: the upcoming period will likely be marked by volatility within the cryptocurrency market.
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2024-10-08 14:44