With just four days left until the US presidential election, cryptocurrency enthusiasts are hoping that a victory for their preferred candidate will lead to a higher bitcoin (btc) price.
Who will be most beneficial for bitcoin?
From the perspective of crypto enthusiasts, the 2024 US presidential election is unlike any other, as both candidates recognize the growing importance of digital assets.
While Republican candidate Donald Trump's victory is seen as beneficial for the cryptocurrency industry, Democratic candidate Kamala Harris has promised a new approach to digital assets. contrasting with the perceived hostility of the Biden administration.
Both candidates are trying to woo the 'crypto voting block': A significant proportion of voters are more likely to support a candidate with a pro-cryptocurrency stance.
Bitwise CIO Matt Hougan mentioned in a recent x.com/yahoofinance/status/1851638681922408534?s=46″ target=”_blank” rel=”noopener nofollow”>interview with Yahoo! Finance that the most crucial outcome for btc is simply that “the election happens.”
Hougan emphasized that regardless of Trump or Harris' victory, the regulatory environment for cryptocurrencies is seeing steady improvement. He attributed the recent positive movement in digital asset prices to a mature regulatory framework.
The Bitwise CIO mentioned that although, in the short term, the cryptocurrency market favors a Trump victory over a Harris victory, bitcoin “doesn't really need Washington to succeed.”
The cryptocurrency executive added that regardless of the election results, institutional investment in the digital asset space is increasing, evident by strong inflows into bitcoin spot exchange-traded funds (ETFs) in recent years. days.
When asked about the role of regulatory clarity in cryptocurrencies, Hougan noted that it affects altcoins more than btc. He anticipates a greater chance of an altcoin rally than btc if Trump wins. Hougan added:
This is the best time to invest in bitcoin from a risk-adjusted perspective. All of bitcoin's major existential risks have disappeared. We have an ETF, we have institutions. They are entering space. The biggest catalyst is that institutional adoption movement.
The road to the new ATH will not be easy
Although btc is trading very close to its all-time high price (ATH) of $73,737, it has not yet reached the March 2024 price level.
Rising geopolitical tensions around the world increase the volatility of an already volatile asset, which can discourage more risk-averse investors buy more btc.
However, existing macroeconomic uncertainties are not deterring crypto analysts from sharing their ambitious price targets for the leading cryptocurrency.
Recently, analysts at the trading company Bernstein provided that a btc of $200,000 by the end of 2025 could be a conservative goal.
That said, the weekly charts show btc attempting several runs past its ATH, only to fall each time. At the time of writing, btc is trading at $70,840, about 4% below its ATH.
Featured image from Unsplash.com, chart from TradingView.com
