Despite increasingly partisan sentiment in the cryptocurrency industry, Bitcoin Whoever wins the US presidential election in November will be prosperous in the long term.
As the optimism sparked by former President Donald Trump’s pro-cryptocurrency proposals this summer began to fade, many cryptocurrency investors are beginning to embrace the idea.
“Do I think we’re going to be in six figures by 2025? Almost certainly. Do I think we’re going to be in six figures no matter who wins? Almost certainly,” said Steven, head of private client and family office Steven Lubka said.
“Bitcoin has always been an investment that is more rooted in countries, sovereign states and the fiscal and monetary conditions of the United States,” Lubka added. “Neither candidate has changed that.”
James Davies, co-founder of cryptocurrency trading platform Crypto Valley Exchange, expressed concerns that a Kamala Harris presidency would somehow limit or depress the price of Bitcoin. A little too much. He noted that crypto startups may face greater challenges, but the industry will continue to forge ahead and thrive. Helping Bitcoin’s growth is the fact that Bitcoin has become more institutionalized this year than ever before, with the launch of a U.S. Bitcoin exchange-traded fund.
“Some of our communities … have become echo chambers and are convinced that if one side wins, the sky will fall,” Davis said. “The reality is that the market is strong, not American-centric, and has no partisan divide. Any party reacts negatively to major events.”
“This is about opportunity and regulation for U.S. users, not the price of global goods,” he added. “Cryptocurrency needs to learn from traditional finance, needs to lobby both sides, align with both sides, and succeed in elections. If we want to build a big ecosystem, we can’t have partisanship.”
Exaggerate risks
Lubka agreed that some observers have “exaggerated the risks of a Harris presidency” because of the hostility the industry has experienced during the Biden administration. That said, “all the signposts we see with Harris continue to represent a de-escalation of encryption rhetoric in the Biden era,” he added.
Tyrone Ross, founder and president of registered investment adviser 401 Financial, said: “The election results will have minimal impact on Bitcoin’s performance in the next 12 to 18 months.” “There are still many companies working through ETF access, and interest rate cuts are coming, Retail trading in centralized custodians is at a low point and it will certainly be more difficult for young startups, but as a developing institutional-grade quality asset, it will continue to prove itself no matter who comes on board.
After hitting an all-time high above $73,000 in March, Bitcoin spent much of 2024 trading between $55,000 and $70,000. Investors generally expect prices to remain quiet until U.S. voters decide the next president. However, election news has had less of an impact on Bitcoin prices recently, with Bitcoin prices being more influenced by macroeconomic developments.
Bitcoin fell about 3% following Tuesday night’s debate between Harris and Trump, although investors attributed that to Japan’s interest rate update and some positioning in U.S. August inflation data released earlier on Wednesday.
Increasingly partisan sentiment
In recent months, there has been speculation that the election would be an immediate catalyst for Bitcoin—with many viewing a second Trump presidency as a boon for the industry. Take the former president as an example, Speaking at the annual Bitcoin conference in Nashville in late Julyand make sure to prioritize references in the republican platform. Bernstein analysts said this week Ways to invest in a potential Trump presidency He added that if he wins on November 5, the cryptocurrency could break through to an all-time high of around $80,000. However, Bernstein said a Harris victory could push Bitcoin towards $40,000.
“If Trump wins in November, will there be an immediate rally? Yes, absolutely. If Harris wins, will there be some immediate selling pressure? That certainly wouldn’t surprise me. But in the medium term, I Don’t think it’s going to be dynamic,” said Swan Bitcoin’s Lubka.
Vice President Harris has not publicly expressed her views on cryptocurrencies, but some in the industry are concerned that she is hostile to cryptocurrencies and agrees with Sen. Elizabeth Warren (D-Mass.) and Securities and Exchange Commission Chairman Gary Gensler Views that are considered conservative towards cryptocurrency adoption.
“There’s no clear statement yet, but the Biden administration has a bad history … so I understand why people are concerned,” Lubka said.
Lubka added that while the Biden administration’s stance on Bitcoin has raised concerns, “I would remind investors… that Bitcoin has performed well under the current administration.” “It has been one of the most successful assets in the world during periods when everyone was against it. Throughout Bitcoin’s history, governments have traditionally been at least mildly hostile to Bitcoin, but it has done extremely well. “
Since 2012, Bitcoin has been the best-performing asset in all but three years.
